Listing ID: 82563
Business Overview
Situated in the Atlantic Coast of Southern Florida, listing specializes in the sale, rental, maintenance, and repair of custom-built high or soft wash water pressure systems including custom built trailers. Started in 1988, business also carries a paint sprayer line that provides coatings, detail supplies, and paint strippers. Enjoying consistent sales growth for over 3 years, the company is an authorized warranty dealer for top name brands and is experienced in engine work, parts, generators, compressors, and travertine-paver-driveway sealers. By offering surface cleaners and disinfectant products as well, strategic opportunities to further industry growth exist, from starting a website presence to hiring a salesperson. Revenues for 2021 reached a projected $1,100,000 alongside Discretionary Earnings of $186,725. The 2,600 square foot facility features around 200 sq. ft. of administrative area and up to 2,400 sq. ft. used as retail, storage, and production space. Found in excellent condition, property holds a renewable monthly tenancy and features an ample parking lot, zoned commercially to handle more capacities. Reliable personnel of three nonunion employees can remain post-sale and continue operations after a smooth and owner-facilitated transitioning period of three months. Besides some social media engagement, marketing efforts center on backing referrals from their large and recurring customer base through quality and superior products.
Financial
- Asking Price: $350,000
- Cash Flow: $186,725
- Gross Revenue: $1,100,000
- EBITDA: $157,060
- FF&E: $44,000
- Inventory: $160,000
- Inventory Included: N/A
- Established: 1988
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:3
- Furniture, Fixtures and Equipment:N/A
Property measuring 2,600+/- square feet is Leased. Listing includes Receivables of $20,189. Inventory can be purchased separately of Asking.
Smooth and owner-facilitated Transition period of three months.
Reason selling: Approaching retirement and/or pursuing other interests.
Additional Info
The business was founded in 1988, making the business 34 years old.
The deal shall not include inventory valued at $160,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the real factor vs the one they tell you may be 2 completely different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is very important that you not depend totally on a vendor's word, but rather, make use of the seller's solution along with your overall due diligence. This will paint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that revenue margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new customers? Most times, businesses have repeat consumers, which form the core of their daily earnings. Certain aspects such as new competitors growing up around the area, road building, as well as personnel turn over can impact repeat consumers and adversely affect future incomes. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the possibility to develop a returning customer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local median family income effect future revenue potential?
