Listing ID: 82831

Business Overview

This company has been in operation for over 50 years and serves the entire Midwest. They stake their reputation on providing quality products at very competitive pricing and always make sure the job is completed to the satisfaction of the customer.

Very streamlined and well run operation. All installation work is done by subcontractors eliminating the need for the complications involved with employees.

Financial

  • Asking Price: $325,000
  • Cash Flow: $89,842
  • Gross Revenue: $649,527
  • EBITDA: N/A
  • FF&E: $1,500
  • Inventory: $250
  • Inventory Included: Yes
  • Established: 1964

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:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The location of the sales facility has been very important to the business. It is on a very busy highway and the showroom is visible to both locals and travelers passing through. It is right at the corner of a busy intersection that has several destination businesses in its line of sight. The showroom is just over 1,200 square feet which is ample space for the staff to sit down with customers and discuss all of the details necessary for their building order. The business currently is leasing the space on a month-to-month arrangement. A new owner would likely need to sign a new multi-year lease if they want to continue to operate from the same location. In addition to the showroom they rent a large space just next to the building where they can display some sample products.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The company provides pre-manufactured structures of all types including various types of barns, carports, animal confinements, warehouses, commercial structures and garages just to name a few. No special licenses are required to operate this business.

Purpose For Selling:

Owner is getting older and would like to retire.

Pros and Cons:

The company does have a few competitors including a building company and lumber yards, but none that can match the combination of offerings that they provide to their customers. They work hard to make sure that they are meeting each individual customer’s needs so that things are done right the first time. They partner with only the best manufacturers and they are able to meet or beat their competitors’ pricing when they wish to do so because of the low overhead structure of the company.

Opportunities and Growth:

There are many avenues of growth available to a new owner. First, if an owner wants to do some of the installation and construction work this would be easily done. The owner could either take over some of the work done by the subcontractors to reduce cost or keep the current subcontractors and then use his/her time to do additional installations. The website is another area where revenues could be impacted significantly. The website could be updated and expanded to allow customers to order products online. Ownership has various other suggestions for a new owner with some fresh energy for growing the business.

Additional Info

The company was started in 1964, making the business 58 years old.
The transaction does include inventory valued at $250, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the genuine factor and the one they tell you might be 2 totally different things. As an example, they might say "I have too many other obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other reasons. This is why it is very important that you not depend completely on a vendor's word, however instead, make use of the seller's response together with your total due diligence. This will repaint an extra sensible picture of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover items like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that profit margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Often times, companies have repeat clients, which develop the core of their daily revenues. Specific factors such as new competitors sprouting up around the location, road building and construction, as well as employee turn over can impact repeat consumers and negatively affect future incomes. One vital point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the better the possibility to develop a returning consumer base. A final idea is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood typical family income impact future income potential?