Listing ID: 82736
The business is backlogged with multiple State and Private contracts forcing them to turn down most recent bid requests.
- Asking Price: $399,000
- Cash Flow: $226,000
- Gross Revenue: $470,000
- EBITDA: N/A
- FF&E: $90,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
28 days at $0 cost
Owner Relocating out of area
Non-compete: 60 miles for 3 years
The company was started in 2007, making the business 15 years old.
The sale doesn't include inventory valued at $5,000*, which ins't included in the suggested price.
The business has 6 employees and is situated in a building with disclosed square footage of 3,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the real reason vs the one they tell you may be 2 entirely different things. As an example, they might state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a variety of various other reasons. This is why it is very vital that you not count entirely on a seller's word, yet rather, use the vendor's answer combined with your total due diligence. This will repaint a more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new clients? Most times, companies have repeat clients, which develop the core of their daily profits. Particular aspects such as new competition growing up around the area, roadway building, and personnel turnover can impact repeat consumers as well as adversely affect future earnings. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the chance to build a returning customer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional mean family earnings influence future income prospects?