Listing ID: 82891

Business Overview

BUSINESS HIGHLIGHTS

The Company specializes in the sales of cleaning and janitorial supplies, equipment rentals and repairs, and janitorial and restoration services for clients. The Company has a rental fleet of cleaning and restoration equipment for special projects, and invests heavily in factory-trained staff, tools and equipment. The Company serves building service contractors, hotels, schools, restaurants, and homeowners.
The Company is licensed to sell brands including, but not limited to, Tennant, Karcher, Nilfisk Advance, Bioesque, CTI-Pro’s Choice, Hydramaster, NewLine, Sandia, FLIR Systems, Nacecare, and Amaircare.

INVESTMENT APPEAL

Strong Client Relationships – The Company has many longstanding and repeat customers (over 500 active accounts). Three of the top four customers have been doing business with the Company on average of over 27. The Company has an 85% rate of repeat business.

Low Employee Turnover – The Company has a low employee turnover, which is a signal of efficiencies and alignment within the Company.

COVID-Resistance – Over the last 12 months, the Company grew revenue by nearly 80% while earnings rose to 20% of sales.

Management Will Remain through Transition – Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.

Financial

  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $5,000,000
  • EBITDA: $1,000,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they might say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of other factors. This is why it is very vital that you not count completely on a vendor's word, but rather, utilize the vendor's response together with your total due diligence. This will repaint a more sensible picture of the business's existing scenario.

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 offer. Many companies borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that earnings margins are too small. Numerous companies come under 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 consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday revenues. Certain aspects such as new competition growing up around the location, road building, as well as staff turn over can affect repeat customers and negatively influence future revenues. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the greater the possibility to construct a returning client base. A final idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Exactly how might the regional average family income effect future income potential?