Business Overview

This hot tub, sauna and swimming pool business for sale in Iowa has a well-established reputation for excellent quality and service. In addition to sales of these products and their accessories, they also service and restore used hot tubs. Due to their excellent reputation, the company benefits from many referrals and repeat customers. The manufacturers carried by this company are exclusive to the market and, in some cases, the entire state.

Financial

  • Asking Price: $700,000
  • Cash Flow: $66,924
  • Gross Revenue: $1,008,239
  • EBITDA: N/A
  • FF&E: $31,800
  • Inventory: $113,642
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:15,400
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A leased, 5,400 square foot showroom is stocked with current products. A 10,000 square foot off-site warehouse as well as another location in Des Moines for a possible new show room location are available for lease.

Is Support & Training Included:

Negotiable.

Purpose For Selling:

Owner is ready to retire but willing to work part time.

Pros and Cons:

Growth opportunities for this business could be found in expanding the social media presence as well as revising the website. Additional water-related or outdoor entertainment products could also be added for new revenue streams. This would be an excellent opportunity for an additional location for an existing hot tub, pool or other related business.

Additional Info

The company was started in 1982, making the business 40 years old.
The deal will include inventory valued at $113,642, which is included in the requested price.

The company has 4 employees and is situated in a building with approx. square footage of 15,400 sq ft.
The real estate is leased by the business for $6,816 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. Nonetheless, the genuine factor and the one they say to you might be 2 totally different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other factors. This is why it is very vital that you not rely entirely on a seller's word, however instead, make use of the seller's answer in conjunction with your general due diligence. This will repaint an extra reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too small. Lots of businesses 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 think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in new customers? Many times, operating businesses have repeat consumers, which form the core of their daily profits. Particular factors such as brand-new competition sprouting up around the location, road construction, and also personnel turnover can affect repeat consumers and also negatively impact future earnings. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the greater the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean home earnings impact future earnings prospects?