Business Overview

For over 25 years, this company has been the go-to business for removing oil tanks for both residential and commercial locations. Oil tanks are above and under ground with some of the jobs being sub contracted. Tanks are cleaned and subsequently sold for scrap (a second revenue source).

A third revenue source is oil delivery; many of the tanks still have useable heating oil which the owner is able to reclaim and resell (with a regular list of customers).

With a 5-star rating from the BBB and other online assessments, their reputation reaches well beyond the Merrimac Valley to include Vermont, New Hampshire, Maine and Rhode Island. Sale includes all vehicles, tools, and storage shipping container. This business has remained open and busy during the COVID-19 pandemic.

Financial

  • Asking Price: $550,000
  • Cash Flow: $250,000
  • Gross Revenue: $275,000
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $20,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

Seller will stay on for an agreed amount of time to train a new owner.

Purpose For Selling:

Retirement

Opportunities and Growth:

Perfect for a junk removal company looking to expand and stay busy during fall and winter months.

Additional Info

The transaction 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 types of reasons why people resolve to sell companies. However, the genuine reason vs the one they tell 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 numerous sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a range of various other reasons. This is why it is really essential that you not depend completely on a seller's word, yet instead, utilize the seller's response in conjunction with your overall due diligence. This will repaint a much more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that profit margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in brand-new customers? Most times, businesses have repeat clients, which develop the core of their day-to-day revenues. Certain factors such as brand-new competition sprouting up around the area, roadway construction, as well as personnel turnover can impact repeat consumers and also negatively affect future earnings. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business often, the better the chance to construct a returning client base. A last thought is the general area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the neighborhood typical house earnings impact future earnings prospects?