Listing ID: 82247
This company manufactures specialty hydraulic conveyors primarily used for road work and construction. Retirement is the motivation for selling. The seller will stay on for a designated period of time to ensure a smooth transition. Excellent add-on for an existing company specializing in road work.
- Asking Price: $560,000
- Cash Flow: $140,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Owner will assist in a smooth transition.
The company was founded in 1985, making the business 37 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. However, the true factor and the one they tell you may be 2 completely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, current decrease in revenues, or a range of other factors. This is why it is really crucial that you not rely totally on a seller's word, but instead, use the vendor's solution along with your general due diligence. This will repaint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that earnings margins are too small. Lots of 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 consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that have to be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Often times, operating businesses have repeat clients, which develop the core of their everyday revenues. Particular variables such as brand-new competition sprouting up around the area, roadway building, and employee turn over can affect repeat consumers as well as adversely influence future revenues. One crucial thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the higher the opportunity to construct a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the neighborhood mean household income influence future revenue potential?