Business Overview

Great opportunity to take over a well-established appliance sales and service center that has a great reputation servicing the N/W SUBURBS of Chicago. This has been a family business for over 25 years and in the last 12 months the owners have implemented several strategic changes that will position the company for growth in future years. Because consumers desire a trained professional to deliver, install and service their major appliances, the internet has made little impact on company sales. The appliance business is considered an essential business, new appliance sales remained strong during the pandemic months. If you are looking for an established business with long-term clients and plenty of room to grow, inquire today as this business will sell fast!

Financial

  • Asking Price: $800,000
  • Cash Flow: $369,000
  • Gross Revenue: $1,859,000
  • EBITDA: N/A
  • FF&E: $105,000
  • Inventory: $110,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,341
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
Pros and Cons:

The company benefits from having a stable reliable presence in the area for many years. Much of their sales and service calls come from repeat business. There will be consistent demand for appliances and some ebb and flow of the sales growth is expected, but the underlying demand can’t go away because the appliances are being used consistently by the consumer and each appliance has a limited useful life.

Opportunities and Growth:

Several operating improvements made by the owners over the past year which will improve efficiencies this year and into the future.

Additional Info

The transaction shall include inventory valued at $110,000, which is included in the listing price.

The business has 9 FT and 1 PT employees and is located in a building with estimated square footage of 4,341 sq ft.
The property is leased by the business for $9,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. Nonetheless, the true factor and the one they say to you might be 2 completely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or an array of various other factors. This is why it is really crucial that you not count completely on a vendor's word, but rather, use the seller's answer combined with your general due diligence. This will paint a more reasonable picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover items like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that profit margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new consumers? Most times, companies have repeat consumers, which develop the core of their daily revenues. Certain variables such as brand-new competitors growing up around the location, roadway construction, and employee turnover can impact repeat consumers as well as negatively affect future revenues. One important point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the better the opportunity to construct a returning client base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the regional mean home earnings effect future income prospects?