Listing ID: 83195
Long established Lawn and Garden retailer with parts and service unit. Top name brands and good service reputation among its large customer base of residential and commercial customers. In a prime and growing location to increase sales. Room for more product lines or expansion. Selling close to hard asset value, don’t miss this opportunity!
- Asking Price: $353,000
- Cash Flow: N/A
- Gross Revenue: $750,000
- EBITDA: N/A
- FF&E: $44,000
- Inventory: $281,500
- Inventory Included: Yes
- Established: 1989
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:12,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Large lot on prime commercial strip with a high traffic count and central location. Good retail showroom/counter space with separate office and plenty of warehouse space for parts and new products. Separate building for service side next door. Owner will consider lease or lease/purchase options on the real estate portion of the business.
Owner will provide 3 weeks (120 hours) of no-charge transition assistance with purchase.
Seller has other venture objectives
Seller has good brands but could add additional brands to boost sales as well as some products that would keep sales high during the off season of the Lawn care side.
The company was started in 1989, making the business 33 years old.
The deal does include inventory valued at $281,500, which is included in the requested price.
The business has 4 employees and resides in a building with disclosed square footage of 12,000 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. However, the genuine reason vs the one they tell you might be 2 absolutely different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in revenues, or a variety of other reasons. This is why it is really vital that you not rely completely on a vendor's word, yet instead, use the vendor's response together with your overall due diligence. This will repaint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too thin. Lots of companies fall into 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 may have existing contracts with suppliers that have to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new consumers? Often times, companies have repeat customers, which form the core of their day-to-day earnings. Particular elements such as brand-new competition growing up around the location, road construction, as well as employee turnover can affect repeat clients and adversely impact future revenues. One vital thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional mean home income impact future earnings potential?