Business Overview

Successful and profitable commercial kitchen hood filter company with recognized key accounts and facility is for sale. Company is know for it’s outstanding service. The listing price includes the building, all inventory, and vehicles. Operation is optimally located for easy access to of the Chicagoland area.

Financial

  • Asking Price: $600,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell operating businesses. Nonetheless, the true reason vs the one they say to you might be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a range of various other reasons. This is why it is very important that you not rely entirely on a vendor's word, but rather, utilize the vendor's response together with your general due diligence. This will paint a much more sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new clients? Often times, companies have repeat consumers, which create the core of their everyday profits. Specific factors such as new competition sprouting up around the location, road construction, and personnel turnover can influence repeat clients and negatively impact future incomes. One vital thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? How might the neighborhood average household income impact future income potential?