Listing ID: 83393
This highly reputable distribution company has been serving local and New England businesses for decades. Continued success has been a direct result of having the parts needed in stock for customers, quick order turnaround, and a friendly, knowledgeable staff. Their customers are all commercial accounts and the top five make up 26% of their annual sales.
The business currently operates with a staff of 2 full-time employees, 1 part-time employee and the owner. These seasoned employees have a combined 60 plus years of experience that allows for top-notch customer service and a niche expertise that has consistently earned the respect and trust of their customers.
- Asking Price: $395,000
- Cash Flow: $59,004
- Gross Revenue: $652,058
- EBITDA: N/A
- FF&E: $54,800
- Inventory: $250,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,840
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
2,840 SF leased space with plenty of room for inventory storage. Business is relocatable. The building has a service area dedicated to repair as well as a retail section built out for counter sales and display.
The business belongs to a specialized marketing group that provides access to lines unavailable to single distributors. There is no other business in the area that has this connection.
Maintaining the online shop is a full-time job and improving upon the setup would create a streamlined process from start to finish. Selling products on Ebay could also increase sales to customers looking for those hard-to-find parts. Someone who could monetize inventory in detail from value and inventory standpoint could do really well.
The sale will include inventory valued at $250,000, which is included in the requested price.
The company has 2 FT/1 PT employees and is located in a building with estimated square footage of 2,840 sq ft.
The property is leased by the company for $1,945 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nonetheless, the real factor vs the one they tell you may be 2 totally different things. As an example, they may say "I have too many other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be justifications to attempt to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a range of other reasons. This is why it is extremely important that you not rely entirely on a seller's word, yet instead, utilize the seller's response along with your general due diligence. This will paint a much more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover things like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new consumers? Most times, businesses have repeat clients, which create the core of their day-to-day profits. Certain factors such as brand-new competition growing up around the area, roadway construction, and also personnel turnover can influence repeat customers and also adversely impact future profits. One essential thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the opportunity to construct a returning consumer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the regional typical family income impact future income prospects?