Listing ID: 83268
Established landscape retail with large profit margins and great reputation. The business has good management in place that is willing to stay. The current owner is willing to train for a period of time during transition and make advisements on how to grow the business. The business could easily be grown the current owner has been unwilling to grow it due to him spending lots of time out of the state for other comments. The operation is very simple to run, operate, and manage would not take long for new owner to learn how to operate.
- Asking Price: $405,000
- Cash Flow: $155,000
- Gross Revenue: $700,000
- EBITDA: $155,000
- FF&E: $105,000
- Inventory: $40,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Great Facilities with prime location visible for i10
Owner is willing to train
Has other businesses outside the state
little to none
Huge growth potential
The business was founded in 2007, making the business 15 years old.
The transaction shall include inventory valued at $40,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. However, the real reason and the one they say to you might be 2 totally different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is very important that you not count totally on a vendor's word, however instead, make use of the vendor's response together with your general due diligence. This will repaint a more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in new clients? Many times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Certain factors such as brand-new competition growing up around the location, road building and construction, as well as personnel turn over can influence repeat clients and adversely influence future incomes. One important point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood median house income influence future income potential?