Listing ID: 82419
Asking Price = $1,090,000
The owners of a long-standing successful custom woodworking business is looking to transition the company to new ownership. Based near a major Midwest metro area, the business manufactures custom-built casework, paneling, and moldings for primarily commercial clients. With a broad mix of clients across the healthcare, education, and financial industries, the business generates highly consistent sales and profitability year-over-year. Average revenue for 2018-2020 is $1.7 million with $282,000 in cash flow. The business currently serves clients in Kansas, Missouri, Nebraska, and Iowa; with a focused business development approach there is significant growth opportunity within this georgraphic footprint. Current owner/operator has extensive history with the business and industry. As a commitment to the future success of the business, the seller is willing to consider a full divestiture supported by a well-planned transition period, or a potential partnership with new owner in which the seller would continue to run the day-to-day operations of the business. Inquire today for more information on this unique opportunity.
Seller’s Discretionary Earnings: $267,730
- Asking Price: $1,090,000
- Cash Flow: $282,000
- Gross Revenue: $1,720,000
- EBITDA: N/A
- FF&E: $500,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:15,600
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
Personal Reasons-Will discuss further with potential buyer
The deal will include inventory valued at $50,000, which is included in the requested price.
The business has 11 employees and is situated in a building with estimated square footage of 15,600 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 entirely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a range of other factors. This is why it is extremely essential that you not depend absolutely on a seller's word, however rather, make use of the vendor's solution together with your total due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new consumers? Many times, companies have repeat consumers, which form the core of their everyday profits. Certain elements such as new competitors growing up around the area, road construction, and also staff turnover can affect repeat consumers as well as adversely impact future profits. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the opportunity to develop a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? How might the regional average house earnings impact future income prospects?