Listing ID: 82112
The Company provides full color, digital printing and precision laser engraving. The Company specializes in supplying customers with products for the Identification, Recognition and Promotional Product markets.
- Asking Price: $475,000
- Cash Flow: $150,000
- Gross Revenue: $416,000
- EBITDA: N/A
- FF&E: $250,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 1990
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
New renovated display and production facilities.
The owner intends to assist in the transition and training of the new owner.
The Company has a broad and deep base of loyal, repeat customers. The Company does very little if any advertising. Most of the business comes from the existing customer base. The Company does have competitors but the market for the products is enormous. Pretty much any business is a potential customer.
The venture was established in 1990, making the business 32 years old.
The deal won't include inventory valued at $5,000*, which ins't included in the asking price.
The business has 3 employees and resides in a building with disclosed square footage of 2,500 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell operating businesses. Nevertheless, the true factor and the one they tell you might be 2 totally different things. For instance, they might state "I have too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or a variety of other reasons. This is why it is really important that you not depend entirely on a seller's word, but instead, utilize the seller's solution along with your general due diligence. This will paint a more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that revenue margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also 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 contracts with vendors that have to be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in new clients? Many times, companies have repeat clients, which form the core of their day-to-day revenues. Specific variables such as brand-new competition growing up around the location, road construction, as well as employee turnover can impact repeat consumers and also adversely influence future incomes. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local typical house earnings effect future revenue potential?