Listing ID: 83256
Profitable screen print shop and ASI member producing quality textile printing. Loyal employees, contract artist, and an extensive customer list make this business a great opportunity for the right buyer.
Family owned and operated for 26 years, this business serves schools, local agencies, residents, and other local businesses in the tri-county area.
- Asking Price: $350,000
- Cash Flow: $128,000
- Gross Revenue: $325,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $20,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company was established in 1995, making the business 27 years old.
The sale does include inventory valued at $20,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nonetheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of other reasons. This is why it is extremely essential that you not depend absolutely on a vendor's word, however rather, use the vendor's solution in conjunction with your total due diligence. This will repaint a more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that revenue margins are too small. Numerous organisations come 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 consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new clients? Often times, operating businesses have repeat customers, which form the core of their daily profits. Certain elements such as brand-new competitors growing up around the location, roadway building and construction, and also personnel turnover can impact repeat customers and also adversely influence future profits. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the chance 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 situated on the outside border of town? Just how might the regional mean household income effect future earnings potential?