Listing ID: 82597

Business Overview

Retail & wholesale building materials store in Billings, MT with specialty product line for sale. The current owners pride themselves in only carrying the BEST products, providing superior customer service compared to the Big Box stores and giving expert advise. Serving Billings since 1976, a new owner would benefit from both the sterling reputation this business, but also have the ability to drastically increase sales & market share through more aggressive marketing, new POS system, adding an outside sales rep and putting in a little more hustle as the current owners do little to no marketing currently. Located at a lighted intersection with the highest traffic counts, this store is in the perfect central location to meet the needs of consumers and contractors alike throughout Billings — and even pulling customers from Wyoming. With Montana being the “most moved to state in the US” and the construction industry booming, there is no sign of sales slowing down anytime soon. The beautiful thing about this business is that no specialty skills are required — just the willingness to learn, the hustle to grow the business and desire to serve customers.

Business is currently valued at $225,000 and inventory at $140,000. Exact value of inventory to be calculated at closing so total purchase price is likely to fluctuate slightly compared to the $365,000 advertised price.

Financial

  • Asking Price: $365,000
  • Cash Flow: $108,095
  • Gross Revenue: $811,290
  • EBITDA: $108,095
  • FF&E: $38,615
  • Inventory: $140,000
  • Inventory Included: N/A
  • Established: 1976

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,900
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller currently rents a single tenant building at a lighted intersection on one of the busiest streets in Billings

Is Support & Training Included:

Seller is willing to train a new buyer and help with a successful transition

Purpose For Selling:

Sellers are wanting to retire

Pros and Cons:

Seller has a specialty product line that keeps customers loyal and speparates them from the competition

Opportunities and Growth:

Huge upside available to a new owner who is a marketing expert, wants to upgrade the POS system, has a lot of energy and wants to add an outside sales rep.

Additional Info

The business was started in 1976, making the business 46 years old.
The deal doesn't include inventory valued at $140,000*, which ins't included in the asking price.

The business has 3 employees and is located in a building with approx. square footage of 5,900 sq ft.
The building is leased by the company for $4,400 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nevertheless, the true factor vs the one they tell you may be 2 absolutely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competitors, recent reduction in profits, or a variety of various other factors. This is why it is very vital that you not count absolutely on a seller's word, however instead, use the vendor's response together with your total due diligence. This will repaint an extra sensible image 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 deal. Numerous operating businesses borrow money in order to cover items such as inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that profit margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract new consumers? Many times, operating businesses have repeat customers, which create the core of their day-to-day profits. Certain factors such as new competitors growing up around the location, road building, as well as personnel turnover can affect repeat clients as well as adversely impact future incomes. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the neighborhood average house earnings impact future revenue potential?