Business Overview

This business sells and installs products used by automotive and recreational vehicles. The company also has an application for industrial products manufactured in nearby factories.
• Recognized in their industry as a leader, the franchisor provides training and support to the individual owners.
• The company is staffed with fully trained employees
• Possible individual owner, or an add on to an existing business
• Location is well known with reasonable lease rate
• Steady cash flow and room for growth
• Conventional or SBA financing possible
• Current owner is retiring

Financial

  • Asking Price: $150,000
  • Cash Flow: $113,000
  • Gross Revenue: $645,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:880
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Owner will assist in a smooth transition

Purpose For Selling:

Retirement

Additional Info

The business was established in 2011, making the business 11 years old.

The business has 3 employees and resides in a building with approx. square footage of 880 sq ft.
The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell operating businesses. Nonetheless, the true factor and the one they tell you may be 2 completely different things. As an example, they might state "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or a variety of various other factors. This is why it is really essential that you not count completely on a seller's word, but instead, make use of the seller's solution along with your overall due diligence. This will repaint a much more practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that revenue margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in brand-new consumers? Often times, operating businesses have repeat customers, which form the core of their everyday earnings. Specific variables such as new competitors growing up around the location, road building, and also employee turn over can influence repeat consumers and also adversely affect future profits. One essential thing to take into consideration 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 better the possibility to develop a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional mean household earnings impact future earnings potential?