Business Overview

Great opportunity for a competitor or new entrepreneur to continue the success of this turnkey steel distribution company. They are also selling 3 semi trucks and trailers that you can buy with this company. Its included in the sales price. Or you can buy the trucks and trailers for sale separate for $100,000. This location is easily relocatable. They sell steel to all 50 states and Canada. Please note that this company is a steel distributor. They discontinued the transportation side of the business a few years back. The Steel Distribution Company is ongoing, successful, and turnkey, it is for sale for $1.1 million. The Trucks and Trailers are for sale separately for $100,000. And once again, the transportation business is not operating but the equipment is being sold.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: N/A
  • Gross Revenue: $4,000,000
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $500,000
  • Inventory Included: Yes
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Office Space and approximately 3 acres of land. About 4 cubicles. 7 desks. You can have less space for the steel if you have racking.

Is Support & Training Included:

Owner will stay to train

Purpose For Selling:

retirement

Pros and Cons:

Great room for growth. They to little to no marketing.

Opportunities and Growth:

Great room for growth. Cons are you have competition and industry can be cyclical

Additional Info

The company was started in 2002, making the business 20 years old.
The transaction shall include inventory valued at $500,000, which is included in the requested price.

The company has 2 employees and is situated in a building with approx. square footage of 1,000 sq ft.
The property is leased by the company for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. Nonetheless, the real factor and the one they say to you might be 2 completely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of other factors. This is why it is really important that you not rely completely on a seller's word, but rather, make use of the seller's solution combined with your overall due diligence. This will repaint an extra practical image of the business's present situation.

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. Many operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that earnings margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new clients? Often times, businesses have repeat consumers, which create the core of their everyday profits. Certain variables such as new competitors growing up around the location, roadway building, as well as personnel turn over can affect repeat customers as well as adversely affect future profits. One essential point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the better the opportunity to build a returning client base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the local average family earnings impact future earnings potential?