Listing ID: 82885
Business Overview
Sunbelt Business Brokers of Houma – Thibodaux presents one of the most profitable and established automobile-accessory businesses in Southeast Louisiana for sale. Established in 1998, this business does 60% of its revenue on exterior automobile accessories and the rest of the sales are a combination of audio/electronic gadgets or anything that goes inside the vehicle. Sales since the beginning of 2019 have been $2.7 million ($1.25million in 2020) and the cash flow of this business has been close to 200K in previous years. Owner is also offering the building for $495,000 and a building (2,200 sq. feet approximately) and land next door that is used for an office. Half of it is rented out. Price for both buildings and land is $850,000 (owner will not sell the secondary building without selling the first one). Owner is also willing to lease out these buildings to the new owner of the business.
Currently business is an owner-operated. It can be more of an absentee owner as manager and employees are extremely likely to stay on because of their passion for the industry. Business has no serious competition in town. There are some places that do one or two of the services it provides. This business gets lots of repeat business. It has a reputation in the community for doing great work and providing quality accessories for all types of vehicles. Current owner is relocating out of area and is willing to owner finance with a significant down payment. Come see this great business, meet the owner and grasp the opportunity!
Agent John Price is a licensed real estate agent in Louisiana. Please contact John for more information at 985-855-555. Sponsoring broker Brandon Bourgeois 225-201-0202.
Financial
- Asking Price: $625,000
- Cash Flow: $200,000
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: $160,000
- Inventory: $190,000
- Inventory Included: Yes
- Established: 1998
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
Available
Other business interests
Additional Info
The venture was founded in 1998, making the business 24 years old.
The sale will include inventory valued at $190,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. For instance, they might say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of other reasons. This is why it is really important that you not count absolutely on a vendor's word, however instead, use the seller's solution together with your overall due diligence. This will paint a much more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering things like inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too tight. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also 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 contracts with suppliers that must be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new consumers? Most times, businesses have repeat consumers, which develop the core of their daily earnings. Particular factors such as new competition growing up around the location, roadway building, and personnel turnover can influence repeat clients and also negatively influence future incomes. One vital thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the higher the chance to construct a returning client base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood mean family income impact future revenue potential?
