Business Overview

•Two industrial buildings for sale on 2.52± Acres including the Industrial Hardware Distributors business
•In business since 1978, Industrial Hardware is a global stocking distributor of industrial hardware items related to many different types of industries
•$2,000,000 worth of inventory sold separately

Financial

  • Asking Price: $2,300,000
  • 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 types of reasons why people decide to sell operating businesses. Nevertheless, the real factor and the one they tell you might be 2 absolutely different things. For instance, they may claim "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of various other reasons. This is why it is very vital that you not depend completely on a seller's word, however instead, use the seller's answer along with your general due diligence. This will repaint an extra practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering points such as supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in new clients? Often times, businesses have repeat customers, which create the core of their day-to-day revenues. Specific aspects such as brand-new competition sprouting up around the area, roadway building and construction, and also staff turnover can affect repeat clients and also negatively affect future revenues. One essential thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the higher the opportunity to construct a returning customer base. A last idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional mean household earnings impact future income prospects?