Listing ID: 82248
This well-established, full-service commercial cleaning company which also provides floor cleaning and maintenance in Central Iowa is for sale. It has been a locally owned and operated business for 41 years. The business provides daily, weekly or monthly services to their loyal, long-term clients including department stores, retail mall clients, commercial office space, manufacturing facilities, and others. They typically work closely with a client to tailor their services to their specific needs. The company has developed contract terms with many of its clients which have improved its financial strength.
- Asking Price: $275,000
- Cash Flow: $96,779
- Gross Revenue: $201,354
- EBITDA: N/A
- FF&E: $17,915
- Inventory: N/A
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business currently operates out of the the owner's house. (Home Based)
This is a terrific business opportunity for an entrepreneurial individual or an existing commercial cleaning business that would like to add to its client base, expand its territory, or expand its service offerings. Due to the large demand in the area for janitorial and floor cleaning services, this business can be grown by developing a sales/marketing program, hiring more employees, and by expanding the territory it serves.
This company has an excellent reputation with their long-standing clients and a new owner will be able to take advantage of existing agreements.
This Business Is Home Based
The company was started in 1980, making the business 42 years old.
The company has 6 employees and is located in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the genuine reason vs the one they tell you may be 2 completely different things. For instance, they might claim "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of other reasons. This is why it is extremely important that you not count totally on a seller's word, but rather, use the seller's response along with your general due diligence. This will repaint an extra sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that revenue margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back 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 structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Many times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific elements such as new competitors growing up around the location, road building and construction, and also personnel turn over can impact repeat clients and negatively impact future incomes. One essential point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the possibility to build a returning customer base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional median family income impact future income potential?