Listing ID: 82470
Business Overview
12% net profit on $10M sales. This business has proven to be recession-proof and provides high-demand services to targeted US markets for the past 48 years. 8:30 to 4:30 Monday through Friday – no weekends, evenings or holidays. Unique business model perfected over decades. 12 management-level employees oversee operations. Most of the employees have 10 to 20+ years and are well compensated. The customer base is diverse with hundreds of accounts across multiple industries.
Financial
- Asking Price: $4,850,000
- Cash Flow: $1,207,267
- Gross Revenue: $9,970,955
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 1973
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Overhead costs are minimal. Employees operate from approximately 3,500 square feet of upscale, professional office space. Controls are in place to maintain quality performance and technology is established to continue remote growth.
Will train for 8 weeks @ $0 cost. This is not a franchise. The work environment is business casual. Strong management and people skills are required. Sales experience is advantageous. You broker and manage a service that all businesses require. Subcontractors provide the "heavy lifting".
Would like to find a new operator that sees the value of the current staff.
This business is straightforward. A new owner can adapt quickly. Ongoing business relationships are not associated directly with the owner which creates a scenario for minimal disruptions in the actual ownership transition.
Growth opportunities lie in the ability to identify national tenants who prefer a single source for all locations and facilities. The process is underway for expansion. Relationships are currently being cultivated that will soon lead to growth. The framework to operate is established. The potential has few limits.
Additional Info
The business was founded in 1973, making the business 49 years old.
The deal shall include inventory valued at $1,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell companies. However, the true reason and the one they say to you may be 2 entirely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a range of other reasons. This is why it is very essential that you not count completely on a vendor's word, yet rather, use the vendor's solution in conjunction with your general due diligence. This will repaint a more practical picture of the business's current situation.
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. Lots of companies borrow money so as to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new customers? Many times, businesses have repeat clients, which form the core of their everyday earnings. Specific variables such as new competition growing up around the location, road construction, and also personnel turnover can influence repeat clients and negatively impact future profits. One crucial point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the neighborhood mean house income effect future income prospects?
