Business Overview

The company engineers, designs, manufactures and assembles products for the transportation of vehicles. They are a well-recognized company within their industry with a reputation for quality products and reliable turnaround times. The company was established in 2001 and has a diverse customer base of OEM’s, retailers and consumers. The owner is looking to transition out of the day to operations but is open to staying on in a consulting role.

Financial

  • Asking Price: $2,000,000
  • Cash Flow: $522,110
  • Gross Revenue: $4,970,922
  • EBITDA: N/A
  • FF&E: $853,470
  • Inventory: $140,000
  • Inventory Included: Yes
  • Established: 2001

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:14,000
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Owner Transition

Additional Info

The venture was established in 2001, making the business 21 years old.
The transaction does include inventory valued at $140,000, which is included in the asking price.

The company has 16 employees and is situated in a building with estimated square footage of 14,000 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 completely different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is really crucial that you not depend absolutely on a vendor's word, however rather, make use of the vendor's answer together with your total due diligence. This will paint a more reasonable image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover things such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too small. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in brand-new consumers? Most times, operating businesses have repeat customers, which create the core of their everyday earnings. Certain aspects such as brand-new competition sprouting up around the location, road building, and also personnel turnover can affect repeat consumers and also negatively affect future earnings. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning customer base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the neighborhood median family income influence future income prospects?