Listing ID: 82469
Business Overview
This northwest Missouri B2B document shredding & imaging business has been in operation for over 30 years. This is a simple, turn-key operation with long term, dedicated employees. The owner is ready to retire and motivated to sell! The operation generates amazing residual income providing shredding services to over 250+ customers on a monthly basis.
The company has 5 employees and many have been with the business for over 10+ years. The business has enjoyed increasing revenue growth even during COVID. Plus, there are significant opportunities to grow the operation.
The owner prefers to sell the real estate with the business and is asking $550k for the 18,000 square foot building. Additional leasing revenue can be generated by adding tenants to the property. A real estate appraisal is available for buyer review. The annual $179k cash flow is net debt service for the building. The business and real estate have been pre-approved for a 20 year SBA financing note for a buyer with a down payment of $140k+ that meets lender criteria.
Financial
- Asking Price: $520,000
- Cash Flow: $179,161
- Gross Revenue: $728,477
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:18,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Retirement
Additional Info
The company has 5 employees and resides in a building with disclosed square footage of 18,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. However, the real reason and the one they tell you might be 2 completely different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a range of other factors. This is why it is extremely important that you not count totally on a vendor's word, but instead, make use of the seller's answer combined with your total due diligence. This will paint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that revenue margins are too thin. 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 also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be fulfilled or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new customers? Many times, businesses have repeat clients, which form the core of their daily profits. Certain variables such as new competition sprouting up around the location, roadway building and construction, as well as personnel turnover can influence repeat clients and adversely influence future incomes. One important point to think about 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 individuals that see the business on a regular basis, the greater the opportunity to develop a returning client base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the regional median house income effect future revenue potential?
