Listing ID: 82127
Company specializes in the design, installation, service and maintenance of fire sprinkler systems for new and existing buildings. The company also does backflow testing and sprinkler inspections.
- Asking Price: N/A
- Cash Flow: $150,000
- Gross Revenue: $2,000,000
- EBITDA: N/A
- FF&E: $311,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 1969
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:9,600
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1969, making the business 53 years old.
The transaction doesn't include inventory valued at $10,000*, which ins't included in the asking price.
The company has 12 employees and resides in a building with disclosed square footage of 9,600 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. However, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they might claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in incomes, or an array of other reasons. This is why it is very essential that you not rely absolutely on a vendor's word, yet instead, use the vendor's answer in conjunction with your total due diligence. This will paint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that profit margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new consumers? Many times, operating businesses have repeat consumers, which form the core of their daily profits. Certain elements such as brand-new competition growing up around the area, road building, and also personnel turn over can influence repeat clients as well as adversely influence future incomes. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning customer base. A final thought is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood mean home income influence future earnings potential?