Listing ID: 83432
This is a unique opportunity to own two complementary business in the beautiful state of New Hampshire. This offering consists of a well-established contracting / construction company along with a successful property management company.
Founded in 1993, this Building Contractor is a strong, well-known company with a great reputation in the community. They are a custom builder of high-end homes, also offering interior renovations, construction of exterior buildings, custom woodworking projects and complete home additions.
The Property Management company provides year-round management for 17 different condominium associations and several private homes. Their services include landscaping, snow removal, professional cleaning services and repairs with licensed tradespeople including plumbers, electricians, carpenters, pest control as well as financial & administrative services.
They also offer rental management for both short and long-term rentals in this vacation destination.
- Asking Price: $500,000
- Cash Flow: $208,000
- Gross Revenue: $712,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $105,000
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:6,500
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Real Estate (approximately 6,500 sq ft) includes office space for both Businesses, garage for equipment and a conference room for use by clients of the Property Management company business to hold association meetings. One office space is currently rented to a tenant, adding $10,000 per year in income. There is room for additional tenants in the surplus office space.
Sellers will assist in the transition.
The business was established in 1993, making the business 29 years old.
The transaction shall not include inventory valued at $105,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 completely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or a range of other factors. This is why it is very vital that you not depend absolutely on a vendor's word, but instead, use the vendor's response combined with your general due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new consumers? Most times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Certain elements such as brand-new competitors growing up around the location, roadway construction, as well as personnel turn over can impact repeat customers as well as adversely impact future profits. One essential 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 highway? Obviously, the more people that see the business regularly, the higher the possibility to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the neighborhood median house earnings effect future income prospects?