Listing ID: 83205
This firm is an industrial services company specializing in plant/facility maintenance, concrete foundations, process piping, and sheet metal fabrication. In business for 35 years, this company is respected by customers and employees alike. Revenue is high and turnover is low. This is a great opportunity for an experienced professional to step out on their own or an existing firm looking to expand their footprint.
- Asking Price: $1,500,000
- Cash Flow: $400,000
- Gross Revenue: $3,000,000
- EBITDA: N/A
- FF&E: $250,000
- Inventory: $15,000
- Inventory Included: Yes
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:22
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1987, making the business 35 years old.
The sale shall include inventory valued at $15,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. However, the real reason and the one they say to you might be 2 absolutely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a variety of various other factors. This is why it is really important that you not count absolutely on a vendor's word, yet rather, utilize the seller's answer in conjunction with your overall due diligence. This will paint a much more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations 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 need to be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new consumers? Often times, businesses have repeat consumers, which develop the core of their day-to-day profits. Particular factors such as new competitors sprouting up around the area, road building, as well as staff turnover can influence repeat clients and also adversely impact future incomes. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the greater the opportunity to develop a returning client base. A final thought is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the local mean household earnings effect future revenue prospects?