Business Overview

Contract pending as of 2/12/22: This is a great opportunity to buy an established local steel hauling company. Client has long term customers that call on his company direct. Sale comes with 4 well maintained flat bet trucks. 5 trailers, inventory, and 2 full time drivers. Ask price for this profitable company is $530,000 that includes all clients, equipment, and inventory. Current lease is $2,500 per month and landlord is easy to work with. This company can easily be moved to a different location. My client is selling due to health reasons and want to retire.

Financial

  • Asking Price: $530,000
  • Cash Flow: N/A
  • Gross Revenue: $632,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1963

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,200
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Nice quiet yard and office.

Is Support & Training Included:

Client is willing to stay on for 30 days for training. He is willing to stay on in a part time position after that, but very limited due to health reasons.

Purpose For Selling:

Health and retirement

Pros and Cons:

55 year old established company. Direct to company relationships.

Opportunities and Growth:

Client turns down jobs. Great opportunity for growing company.

Additional Info

The venture was founded in 1963, making the business 59 years old.

The business has 4 employees and is located in a building with estimated square footage of 4,200 sq ft.
The property is leased by the business for $2,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nevertheless, the genuine reason vs the one they say to you may be 2 completely different things. For instance, they may say "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a variety of various other factors. This is why it is really important that you not depend entirely on a seller's word, yet rather, make use of the seller's answer along with your general due diligence. This will repaint an extra practical image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in brand-new clients? Many times, operating businesses have repeat consumers, which create the core of their daily earnings. Particular aspects such as new competition sprouting up around the location, road construction, as well as employee turn over can affect repeat customers as well as negatively impact future incomes. One crucial point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business often, the better the opportunity to build a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median household income effect future revenue prospects?