Listing ID: 83054
This 90-year established transportation business specializes in hauling short-run dry good truckloads, within a 200-mile radius of their main terminal in northern Alabama. This business includes 29 acres, a 35,000 sq/ft high-ceiling warehouse, 20 door loading dock, a 3,000 sq/ft truck repair shop, 12 power units and 43 trailers, two 8,000-gallon diesel pumping stations. This is a very well-established trucking business with long-term clients that provide them with repeat business.
- Asking Price: $3,500,000
- Cash Flow: $376,000
- Gross Revenue: $1,650,000
- EBITDA: N/A
- 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 people decide to sell companies. Nevertheless, the real factor and the one they say to you might be 2 totally different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a variety of other factors. This is why it is extremely crucial that you not rely totally on a seller's word, however instead, utilize the vendor's solution in conjunction with your total due diligence. This will repaint a more realistic picture of the business's existing circumstance.
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 businesses finance loans in order to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in new consumers? Most times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Specific elements such as brand-new competition sprouting up around the location, road building, and also personnel turnover can affect repeat consumers and also adversely influence future earnings. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the better the opportunity to construct a returning client base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local typical family earnings influence future revenue potential?