Listing ID: 82306
Located in Des Moines, Iowa and with 25+ FT employees in place, this company has a well-trained staff to handle nearly every aspect of the job. This well-established business has been in operation since 1988, and provides a seamless and practical approach from design through completion. With years of expertise in the home remodeling industry, AIM has more than $1,600,000 in the pipeline! Each year they serve 90+ clients and are on track this year to complete over 120 jobs! This experienced team provides a “one-stop-shop” approach to residential kitchen and bath remodels. This business controls the quality and timeliness of every instillation by completing all work in house except for countertop instillation. Their complete showroom and an onsite designer provide 3D renderings for projects that allows for stress-free selections. Most projects happen in the kitchen (45%), the bathroom (45%), as well as other remodeling projects throughout the home. An incredible asset of this business is the well-trained and experienced team who are cross-trained in many different skills and many of whom have a long tenure with the company. Leads manage the projects, and in the office a general manager handles the day-to-day operations with the help of an office manager. With nearly $1M in assets includes the company’s 14 vans, power tools, and inventory. The team works out of a 4,000 sq. ft. office building. The owner of the business owns the facility under a separate entity and leases it back to the business for $2,400/month and is willing to lease to the buyer. With a solid reputation in the area, the business has a long-standing relationship with customers; they are able to keep their service area within a 30-mile radius of the Des Moines metro.
- Asking Price: $4,200,000
- Cash Flow: $1,061,153
- Gross Revenue: $4,353,444
- EBITDA: N/A
- FF&E: $918,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:27
- Furniture, Fixtures and Equipment:N/A
The seller is passive in business and a new owner will likely not need a substantial transition time. The owner’s responsibilities are very limited as all of the employees report to the General Manager.
In search of new business opportunities
The company was established in 1988, making the business 34 years old.
The business has 27 employees and is located in a building with approx. square footage of 4,000 sq ft.
The building is leased by the business for $2,400 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nevertheless, the true factor and the one they tell you might be 2 entirely different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a variety of various other factors. This is why it is extremely vital that you not count totally on a seller's word, however instead, use the vendor's solution in conjunction with your overall due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new consumers? Many times, companies have repeat consumers, which develop the core of their everyday earnings. Specific factors such as brand-new competitors growing up around the location, roadway building, and also staff turn over can affect repeat customers and also adversely influence future profits. One essential point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the chance to build a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood mean family earnings effect future earnings prospects?