Business Overview

This 30+ year old business provides a specialized maintenance service to large and high-end property owners in the Chicagoland area.

The target markets are primarily commercial: Hotel and large buildings, including
historical, architecturally important buildings in Chicago, many of which this team has
restored.

Financial

  • Asking Price: $199,000
  • Cash Flow: $71,000
  • Gross Revenue: $528,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $10,000
  • Inventory Included: N/A
  • Established: 1989

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,300
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The owner is committed to a smooth transition and open to providing training and consulting post-acquisition, depending on the need.

Purpose For Selling:

Owner is considering retirement after operating the business for 30+ years

Additional Info

The venture was established in 1989, making the business 33 years old.
The deal shall not include inventory valued at $10,000*, which ins't included in the listing price.

The company has 6 employees and is located in a building with estimated square footage of 2,300 sq ft.
The building is leased by the business for $2,865 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nonetheless, the real factor vs the one they say to you may be 2 completely different things. As an example, they may state "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is very essential that you not count totally on a seller's word, yet instead, make use of the vendor's response together with your general due diligence. This will paint a more realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that earnings margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new consumers? Many times, businesses have repeat consumers, which form the core of their everyday profits. Particular elements such as brand-new competition growing up around the location, road building, and staff turnover can impact repeat customers and also adversely affect future profits. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the chance to build a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the local mean household income impact future earnings potential?