Listing ID: 82443
Business Overview
After almost 30 years of business in the Kansas City metro, the owner is ready to retire. This trucking/waste collection company brings a consistent record of revenue growth and adjusted earnings in excess of $700,000 in 2019 and 2020.
A new owner could qualify for diversity set aside contracts under WBE (Woman Business Enterprise), DBE (Disadvantaged Business Enterprise) and/or SLBE (Small Local Business enterprise) programs and not impact the status of current contracts.
Expansion opportunities exist through additional subcontract clients and increased efficiencies with current equipment and staff. Management and staff in place to operate the business with little additional supervision. Sellers prefer to lease the facility to the new owner.
Financial
- Asking Price: $4,500,000
- Cash Flow: $807,480
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $3,659,500
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,240
- Lot Size:N/A
- Total Number of Employees:38
- Furniture, Fixtures and Equipment:N/A
Retirement
Additional Info
The transaction shall not include inventory valued at $3,659,500*, which ins't included in the listing price.
The company has 38 employees and resides in a building with disclosed square footage of 8,240 sq ft.
The real estate is leased by the business for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell companies. However, the real reason vs the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or an array of various other reasons. This is why it is extremely important that you not rely absolutely on a seller's word, but rather, make use of the seller's solution along with your general due diligence. This will repaint a much more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover points such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that earnings margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in brand-new customers? Often times, companies have repeat clients, which create the core of their day-to-day revenues. Specific aspects such as new competition growing up around the area, road construction, and employee turnover can influence repeat clients as well as adversely influence future earnings. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the opportunity to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood typical home earnings effect future income potential?
