Listing ID: 82220
This apparel screen printing and embroidery business in Iowa wholesales t-shirts, sweatshirts, caps and other custom products to their customers. They have large order repeat business from customers all over the United States. The business is well-known for their extensive custom design work which is done in-house by talented graphic designers. The employees are knowledgeable in the screen printing and embroidery business which has helped the company attain a great reputation in the industry.
- Asking Price: $850,000
- Cash Flow: $274,806
- Gross Revenue: $1,446,765
- EBITDA: N/A
- FF&E: $786,992
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The 6,000 sq. ft. leased facility is conveniently located in a metro area. It has the capacity to handle all the production that is currently being run by the company.
The business has a great advantage with the large number of experienced employees who are able to handle the work without much supervision and in turn the company is able to offer faster turn around times than the competition.
There is tremendous opportunity to grow this business by adding online sales and selling directly to the public. The business could also add more workers and run additional shifts. An expansion of their product line to include other advertising specialty items could also be a new stream of revenue for the business.
The company was established in 1982, making the business 40 years old.
The sale does include inventory valued at $50,000, which is included in the suggested price.
The business has 11 employees and resides in a building with approx. square footage of 6,000 sq ft.
The property is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. However, the genuine reason and the one they tell you might be 2 completely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or an array of various other reasons. This is why it is really crucial that you not rely completely on a vendor's word, but rather, utilize the seller's answer in conjunction with your overall due diligence. This will repaint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans so as to cover points like stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that earnings margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Often times, operating businesses have repeat consumers, which create the core of their daily profits. Specific variables such as brand-new competition sprouting up around the area, road building and construction, and also personnel turnover can affect repeat consumers and also adversely influence future earnings. One vital thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning customer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local typical family income influence future earnings potential?