Listing ID: 82295
Excellent opportunity to own an established marketing, print and mail franchise in Central Iowa.
This is a professional service business serving the digital and print marketing communications needs of small and medium-size organizations. Direct mail, advertising, website development, email marketing, social media and more.
Strong consistent sales and cash flow positive.
- Asking Price: $630,000
- Cash Flow: N/A
- Gross Revenue: $1,188,000
- EBITDA: $210,900
- FF&E: $50,000
- Inventory: $16,000
- Inventory Included: Yes
- Established: 1983
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,000
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
8,000 sq, ft facility. This is a commercial print business.
Negotiable - current owner and franchise
The Des Moines metro continues to see exceptional growth.
The company was started in 1983, making the business 39 years old.
The deal shall include inventory valued at $16,000, which is included in the listing price.
The business has 9 employees and resides in a building with disclosed square footage of 8,000 sq ft.
The real estate is leased by the company for $4,125 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the real reason and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is extremely essential that you not rely totally on a vendor's word, but instead, use the seller's answer in conjunction with your overall due diligence. This will paint a much more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover points like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that revenue margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new clients? Often times, businesses have repeat clients, which develop the core of their daily earnings. Particular elements such as new competition growing up around the location, road construction, as well as personnel turnover can influence repeat customers and also negatively influence future revenues. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the better the opportunity to build a returning client base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Just how might the regional median home earnings impact future income potential?