Listing ID: 83304
This business has great reputation and been in business for many years. The current owner is willing to stay on to train a new owner. The current owner is looking to retire due to his age. Has many customers that are repeat customers. The business also comes with two vehicles and all the equipment needed to run the business. With a new owner the business could easily be grown.
- Asking Price: $300,000
- Cash Flow: $70,000
- Gross Revenue: $520,000
- EBITDA: $62,000
- FF&E: $75,000
- Inventory: $5,000
- 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
This business has a great location but usually operates at customers location.
The owner is willing to stay on and train
Could easily be grown if new owner has the availability to work the business.
The business was established in 1995, making the business 27 years old.
The deal shall include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 entirely different things. For instance, they might state "I have too many various commitments" 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 altering demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is really important that you not depend totally on a vendor's word, however instead, use the vendor's response in conjunction with your total due diligence. This will repaint an extra practical image of the business's existing scenario.
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. Numerous businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new customers? Many times, businesses have repeat customers, which create the core of their daily profits. Particular variables such as brand-new competition growing up around the location, roadway building and construction, as well as employee turnover can impact repeat customers as well as negatively influence future profits. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? How might the local typical home income impact future income potential?