Listing ID: 82749
Business Overview
This carpet, tile, and laminate sales & installation company is excellently positioned for success and has grown in sales (over 28% since 2018) and cash flow (over 50% since 2018). The owner started this flooring company over 15 years ago and has over 30 years’ experience in the industry. The store, showroom, and production facility are ready for the qualified investor to walk in on day 1 and step in a completely operational business. The staff is well trained and willing to stay with the new owner. The business is in central NC near a major metropolitan area.
Financial
- Asking Price: $450,000
- Cash Flow: $280,000
- Gross Revenue: $1,156,500
- EBITDA: N/A
- FF&E: $60,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 2009
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:9,600
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Seller training for 14 days at no cost
Owner retirement
NON-Compete: 50 miles for 3 years
Additional Info
The venture was founded in 2009, making the business 13 years old.
The transaction does include inventory valued at $50,000, which is included in the requested price.
The business has 12 employees and is located in a building with disclosed square footage of 9,600 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the true reason and the one they tell you might be 2 totally different things. For instance, they may claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or an array of various other factors. This is why it is really important that you not rely entirely on a seller's word, yet instead, make use of the seller's solution combined with your overall due diligence. This will repaint a more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new customers? Most times, operating businesses have repeat clients, which create the core of their everyday earnings. Particular factors such as new competition growing up around the location, road construction, as well as staff turnover can impact repeat clients and also adversely impact future earnings. One essential point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the chance to develop a returning consumer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the local median house income effect future revenue prospects?
