Business Overview

Profitable and growing low voltage technology company with more than 30 years of satisfied customers and an excellent reputation. Premier service offerings include solutions for phone, voip, access control, security, cabling, and audio for commercial and institutional clients. The business has strong net cash flow margins and revenues. This business enjoys a well-positioned client base in multiple sectors from auto to memory care. It is an essential and high demand industry with potential for continued growth within its sizeable service area. Tenured employee team with well maintained assets sets the operation up perfectly for the next owner.

Financial

  • Asking Price: $550,000
  • Cash Flow: $100,000
  • Gross Revenue: $730,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $34,000
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retirement

Additional Info

The transaction won't include inventory valued at $34,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. Nonetheless, the genuine factor vs the one they say to you may be 2 completely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in profits, or a range of various other factors. This is why it is really essential that you not rely absolutely on a vendor's word, yet rather, utilize the seller's solution combined with your overall due diligence. This will paint an extra reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too thin. Lots of 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 obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Most times, operating businesses have repeat clients, which develop the core of their everyday earnings. Certain variables such as new competitors sprouting up around the location, roadway construction, as well as personnel turnover can affect repeat consumers as well as adversely affect future incomes. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to construct a returning customer base. A final thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the neighborhood average house earnings effect future revenue potential?