Listing ID: 83348
1,200± SF locally owned design and showroom business for sale located in Southern Maine
Over 25 years of experience in cabinetry, countertops, tile and other products, along with installation of kitchens and bathrooms
Sale price includes inventory and equipment
$100,000 in future booked business deposits
Leasing information: $1,600/month MG
Financials and location available with signed Confidentiality Agreement
- Asking Price: $399,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. Nonetheless, the genuine reason and the one they say to you may be 2 entirely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of various other reasons. This is why it is very important that you not count absolutely on a seller's word, yet instead, utilize the vendor's solution in conjunction with your overall due diligence. This will paint an extra realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new clients? Many times, companies have repeat clients, which create the core of their daily earnings. Certain factors such as brand-new competitors sprouting up around the area, roadway building, and also employee turnover can influence repeat clients and also negatively impact future earnings. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Just how might the local median household income effect future income potential?