Listing ID: 82557

Business Overview

This unique wholesale janitorial and cleaning supplies store operates successfully from its shopping center-based headquarters in the DFW metroplex. The business is a profitable retailer and supplier of janitorial supplies, paper products, cleaning products, sanitation supplies and more. The Company’s primary products consist of cleaning chemicals, gloves, brushes, mops, disinfectants, floor care supplies, cleaning machinery, equipment, paper products, dispensers and restroom products all from major, reputable brands. The Company operates from a well-located, retail based location, totaling 3,300 square feet. Included in the space is 500 square feet of office space and 1,500 square feet used for storefront and retail display space. The facility is leased to the business by a qualified third party on a renewable lease. The owner of the company currently provide sales support, inventory management and general oversight. The Company’s customer base consists primarily of regional businesses, cleaning companies and public organizations in need of cleaning products. A significant portion of the company’s sales is made up of toilet paper, paper towels and COVID-19 sanitation supplies. The Company has a proven track record of being able to stay ahead of market trends, new products, and changing trends in the types of cleaning products gaining popularity in the marketplace. With its wide range of products, the Company’s marketing efforts focus on targeting repeating business utilizing direct sales, in person sales and through it’s website. In 2020, the Company’s total revenue was $1,364,401.

Financial

  • Asking Price: $650,000
  • Cash Flow: N/A
  • Gross Revenue: $1,364,401
  • EBITDA: $192,783
  • FF&E: $250,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1991

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Property measuring 3,300 square feet is Leased.

Is Support & Training Included:

Standard 6 month Owner Transition period.

Purpose For Selling:

Approaching retirement and/or pursuing other interests.

Additional Info

The venture was founded in 1991, making the business 31 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell businesses. Nevertheless, the true reason and the one they say to you may be 2 entirely different things. As an example, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in earnings, or a variety of other reasons. This is why it is really important that you not depend absolutely on a vendor's word, yet rather, utilize the vendor's answer combined with your overall due diligence. This will repaint a much more sensible picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that earnings margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. 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 charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new clients? Many times, businesses have repeat customers, which form the core of their day-to-day revenues. Certain elements such as new competitors sprouting up around the location, roadway building, and also staff turnover can impact repeat clients and also negatively influence future profits. One crucial point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the chance to build a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional average household earnings impact future revenue potential?