Listing ID: 82485
This business is a custom manufacturer of wood trusses used in the construction of agricultural, commercial, and residential buildings. Its high-quality products, professionalism, and attention to detail have led to many longtime, repeat customers. Most new business comes via referral as there has not been a significant sales or marketing “push” in many years.
Current ownership is ready to retire after training the successful buyer and transitioning leadership. Employees, which include seasoned production staff, are committed to the business, and are expected to stay on with the new owner.
This is a terrific acquisition for a buyer seeking a company with the operational and financial stability of a 25+ year-old company as well as capacity to scale and grow. Located in a small city that is just a short drive from Kansas City, Missouri, the Company’s real property must be acquired with the business.
The business and real estate are being offered at $1,650,000. This price includes furniture, fixtures, and equipment, vehicles, and trailers and approximately $200,000 of raw materials/inventory. A June 2021 appraisal valued the real estate at $800,000.
- Asking Price: $850,000
- Cash Flow: $217,100
- Gross Revenue: $1,127,990
- EBITDA: N/A
- FF&E: N/A
- Inventory: $200,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:11,048
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The deal does include inventory valued at $200,000, which is included in the suggested price.
The business has 9 employees and resides in a building with approx. square footage of 11,048 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of other factors. This is why it is extremely essential that you not count absolutely on a seller's word, but instead, use the vendor's solution along with your general due diligence. This will repaint an extra sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that earnings margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new clients? Most times, businesses have repeat customers, which form the core of their everyday earnings. Certain elements such as brand-new competition sprouting up around the area, roadway building and construction, and also employee turn over can impact repeat customers and also negatively affect future revenues. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the possibility to construct a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the local median house income impact future income prospects?