Business Overview

Established building supply company in one of Iowa’s county seat towns. This turnkey operation has good real estate, inventory, equipment and employees in place to help the next owner be successful. The company serves contractors and home owners in a 50-mile radius.
The owners are planning retirement, but will stay on through a smooth transition. This can be a great add-on for an existing building supply company or business opportunity for an individual looking to create a legacy for their family.

Financial

  • Asking Price: $2,150,001
  • Cash Flow: $575,000
  • Gross Revenue: $3,700,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1980

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

33,000 sq ft split between multiple buildings

Is Support & Training Included:

Owner will assist in a smooth transition

Purpose For Selling:

Retirement

Additional Info

The company was founded in 1980, making the business 42 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell companies. Nonetheless, the true reason and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is really essential that you not count entirely on a seller's word, yet rather, use the seller's solution in conjunction with your overall due diligence. This will repaint a more reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Remember that sometimes this can indicate that revenue margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new consumers? Most times, operating businesses have repeat customers, which create the core of their daily revenues. Particular elements such as brand-new competitors growing up around the location, roadway building and construction, as well as personnel turn over can affect repeat consumers and negatively impact future earnings. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the edge of town? Exactly how might the local average family earnings influence future earnings potential?