Listing ID: 81499
Well established practice that is currently using QuickBooks and Drake software. Staff available. The current owner is looking to retire but will be available as needed in order to assist the buyer during the client transition. Flexible price and terms as seller is wanting to close before tax season.
- Asking Price: $139,680
- Cash Flow: N/A
- Gross Revenue: $139,680
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. However, the true reason vs the one they say to you may be 2 totally different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is really essential that you not depend absolutely on a seller's word, however instead, use the seller's answer combined with your overall due diligence. This will repaint an extra sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that earnings margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new consumers? Often times, businesses have repeat consumers, which develop the core of their day-to-day earnings. Particular elements such as new competitors growing up around the area, roadway construction, and staff turn over can influence repeat clients and also adversely impact future revenues. One essential thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the possibility to develop a returning consumer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? How might the regional mean home earnings influence future income potential?