Listing ID: 81605
Business service company with decades of history offered for sale. There are numerous ways to grow and expand this business beyond its current great success. The owner is retiring and is willing to train and transition. For more information, call Pam Ludwinski at 314.368.8811 or firstname.lastname@example.org.
- Asking Price: $480,000
- Cash Flow: $202,423
- Gross Revenue: $308,171
- EBITDA: N/A
- FF&E: $12,500
- Inventory: N/A
- Inventory Included: N/A
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Building Lease: 1,200 sq. ft. @ $700.00 per month
Adding another crew
The business was established in 1981, making the business 41 years old.
The business has 2FT employees and resides in a building with approx. square footage of 1,200 sq ft.
The building is leased by the business for $700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 totally different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competitors, recent reduction in profits, or a range of various other factors. This is why it is very important that you not count entirely on a seller's word, yet instead, use the vendor's answer in conjunction with your general due diligence. This will paint a much more practical image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering items like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too thin. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that have to be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in new customers? Many times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Certain elements such as brand-new competition growing up around the area, roadway construction, and also employee turn over can influence repeat customers and adversely influence future revenues. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the higher the possibility to develop a returning client base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the regional median family earnings influence future earnings potential?