Listing ID: 82808
This company has been providing quality products for its customer base for over 30 years. The company is a manufacturer and wholesale supplier of specialty products used in the home building industry and serves large distributors and dealers of these products. The company has been able to maintain its stability even through the tough times everyone has been forced to endure during the Corona Virus pandemic. The strong foundation has this business primed for growth under the guidance of a new owner/operator.
- Asking Price: $1,200,000
- Cash Flow: $232,494
- Gross Revenue: $3,151,671
- EBITDA: N/A
- FF&E: $226,110
- Inventory: $219,714
- Inventory Included: Yes
- Established: 1986
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:14,000
- Lot Size:N/A
- Total Number of Employees:22
- Furniture, Fixtures and Equipment:N/A
The company operates from a standalone facility in a mostly industrial area that has excellent access for tractor trailers and is very conveniently located close to major travel routes. The facility was built specifically for the business. Though the facility is not quite at full capacity, there is room on the property for expansion and the building was originally constructed with future expansion in mind. The layout lends itself to efficiency in the process and is equipped with loading docks capable of accommodating any size truck for unloading and loading of product. The property and building are owned by the seller and can be purchased for an additional price.
Will train for 4 weeks @ $0 cost. Specialty products used in the home building industry.
Ready to retire and move on to the next phase of life.
One of the overwhelming strengths of this business is the very limited competition. There are many barriers to entry to this business and only a few competitors of any size. This business differentiates itself from its competitors by providing timely, first-class service and being willing to go the extra mile for special requests.
There are numerous opportunities for growth that the seller is willing to discuss with new ownership. At the top of list are sales and marketing efforts and technology. These are key areas where the seller feels that immediate top line results can be achieved with minimal time and dollars spent.
The business was started in 1986, making the business 36 years old.
The sale does include inventory valued at $219,714, which is included in the suggested price.
The company has 22 FT employees and resides in a building with disclosed square footage of 14,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell businesses. Nonetheless, the real reason vs the one they tell you may be 2 totally different things. For instance, they might say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is extremely crucial that you not rely entirely on a vendor's word, yet rather, utilize the vendor's solution together with your general due diligence. This will paint a more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover points like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that profit margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new clients? Often times, businesses have repeat clients, which form the core of their day-to-day profits. Particular aspects such as new competitors sprouting up around the area, roadway construction, as well as personnel turnover can influence repeat clients and also negatively impact future incomes. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to build a returning customer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the local mean family earnings influence future income potential?