Business Overview

This rapidly growing agriculture and heavy equipment sales business provides sales of new and high-quality, used equipment for the agricultural, construction, industrial, trucking, and gas & oil industries worldwide. Approximately 95% of the revenue from this business is derived from internet sales stemming from cutting-edge technology, target marketing, modern advertising techniques, and online auctions. The business also maintains a strategically-located Midwest headquarters from which new and used equipment is displayed and sold, and the e-commerce business is managed.

Financial

  • Asking Price: $1,750,000
  • Cash Flow: $368,554
  • Gross Revenue: $4,131,788
  • EBITDA: $341,914
  • FF&E: $114,000
  • Inventory: $589,234
  • Inventory Included: N/A
  • Established: 2016

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The real estate includes nearly two acres of prominent commercial property on one of the highest traveled highways in the county. Included is a new facility with a shop, customer reception area, offices, conference room, and storage. The property is monitored with a security camera system.

Is Support & Training Included:

As required.

Purpose For Selling:

Focus on other business interests.

Pros and Cons:

This business is turn-key and modern, with an e-commerce website and an established following. It is in a great location, has excellent facilities, and well-trained employees.

Opportunities and Growth:

This business continues to grow with a nearly vertical sales trajectory since inception. It is poised for massive expansion with a new owner. The addition of more salespeople and support staff would generate increased revenue. The business could also further benefit from an expanded digital marketing plan and even stronger social media presence.

Additional Info

The venture was established in 2016, making the business 6 years old.
The deal doesn't include inventory valued at $589,234*, which ins't included in the suggested price.

The company has 8 employees and is situated in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 absolutely different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, recent reduction in revenues, or a variety of various other reasons. This is why it is very crucial that you not rely absolutely on a vendor's word, however rather, utilize the seller's answer combined with your overall due diligence. This will paint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. 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 met or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in new consumers? Often times, businesses have repeat consumers, which form the core of their day-to-day earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway building, and employee turnover can affect repeat consumers and negatively affect future incomes. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood average home income influence future revenue prospects?