Listing ID: 82794
Business Overview
A trusted vendor for consumer debt collection organizations that seek to outsource the collection and verification of debtor information. Collection law firms, consumer finance companies, and debt collection agencies rely on the company’s proprietary process to provide verified information about debtors. Clients use this information for judgment collections.
Stock sale
Financial
- Asking Price: $1,475,000
- Cash Flow: N/A
- Gross Revenue: $1,560,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2009
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
Seller will provide up to 60 days of training and transition to the new owner.
Retirement
In conjunction with increasing debt loads incurred due to the COVID-19 pandemic and very low unemployment rates, the need for the company’s services is increasing.
? Greater investment in business marketing including attending and exhibiting at relevant trade shows to increase exposure to potential clients ? Additional direct solicitation to businesses with a high probability of needing skip tracing services. ? Current employees have the capacity to handle more volume
Additional Info
The business was started in 2009, making the business 13 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nevertheless, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is very essential that you not count entirely on a vendor's word, however rather, use the seller's answer together with your overall due diligence. This will repaint a much more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new clients? Most times, businesses have repeat customers, which create the core of their day-to-day profits. Specific factors such as brand-new competition sprouting up around the location, road building, as well as employee turnover can influence repeat clients and also negatively influence future profits. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the greater the opportunity to build a returning customer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? How might the regional median family income impact future revenue potential?
