Listing ID: 82883
Business Overview
Sunbelt Business Brokers of Baton Rouge presents this long standing tool-repair business in Lafourche Parish Louisiana. This business has been in operation since 1993 and handles accounts all along Hwy. 90 from Morgan City to Harvey with a local business customer base of 80 customers. Business is well known for great service and lots of repeat business. In fact, business does no advertising and gets no walk-in traffic leaving plenty of room for growth with new marketing. The business specializes in repairs to any kinds of torches, regulators, air/electrical tools as well as mechanical and hydraulic tools. This 28-year-old business even does some certified warranty work for any NAPA products in the region. This turn-key business is great for someone in the welding and fitting industry. Current owner would also help out with transition period and is open to owner financing some of the business and land. Real estate and building price is $180,000. Business is the 2,400-square-feet building and land (80’x150’) the building sits on. The building is on a busy state highway. If someone wanted to lease the building, that price would be $1500 per month, with an option to buy down the road. In the last four years, this business has done just under $1 million in sales. Come check out the business, meet the owner and see if this business is a good fit for you and make an offer.
Agent John Price is sponsored through Sunbelt Business Brokers of Baton Rouge, sponsoring broker Brandon Bourgeois, 225-201-0202. Please contact John directly at 985-855-555 for more information.
Financial
- Asking Price: $180,000
- Cash Flow: $52,000
- Gross Revenue: $227,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 1993
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:24,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Available
Retirement
Additional Info
The business was founded in 1993, making the business 29 years old.
The transaction will include inventory valued at $3,000, which is included in the listing price.
The business has 4FT employees and is situated in a building with disclosed square footage of 24,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the real factor and the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in profits, or an array of other factors. This is why it is very essential that you not count entirely on a seller's word, yet rather, use the seller's solution together with your total due diligence. This will repaint a more practical image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can imply that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new clients? Many times, businesses have repeat clients, which create the core of their everyday profits. Particular variables such as brand-new competitors growing up around the area, road building and construction, as well as staff turnover can affect repeat customers and also adversely affect future profits. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, 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 located on the outskirts of town? How might the regional average home income influence future earnings prospects?
