Listing ID: 82301
Well established and highly respected in the current markets served.
Revenue and profitability steady over the past three years. Cashflow $437,000.
National brand name recognition – NOT a franchise.
Focus on exterior residential remodeling though could expand into multi-family and commercial buildings.
Steady growth along with a very bright future for the remodeling industry make this an extremely attractive business for the coming years.
Over $200,000 in customer deposits to Buyer at closing includes ~15% profit.
- Asking Price: $1,590,000
- Cash Flow: $437,000
- Gross Revenue: $2,800,000
- EBITDA: N/A
- FF&E: $130,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,700
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
5,700 SF retail showroom, offices and large warehouse with dock door located on major US Highway and just two miles from US Interstate make for easy access to all customers.
Loyal full time management and employees as well as consistency in subcontractors. Owner is available to train and transition to the new owner.
Company competes at both entry level and mid/high price points and serves multiple remodeling needs, allowing for one-stop convenience for residential customers.
Potential to grow product / service offering as well as multi-family and commercial.
The company was founded in 2010, making the business 12 years old.
The deal shall include inventory valued at $5,000, which is included in the asking price.
The business has 7 employees and is situated in a building with approx. square footage of 5,700 sq ft.
The property is leased by the company for $4,100 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the real reason and the one they say to you may be 2 entirely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or a range of other factors. This is why it is extremely essential that you not depend completely on a vendor's word, but rather, utilize the vendor's response combined with your overall due diligence. This will repaint a more realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover points like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that earnings margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new clients? Often times, companies have repeat customers, which develop the core of their everyday profits. Particular variables such as brand-new competition sprouting up around the area, roadway construction, and also employee turnover can affect repeat customers as well as adversely influence future revenues. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the better the chance to build a returning customer base. A final thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean family income impact future revenue prospects?