Business Overview

Real estate plus a well-established and highly profitable commercial cleaning business is for sale and it won’t last long. With over 20 years in business, the company has an excellent reputation serving clientele throughout Southern & Central Maine. Huge demand for their services has allowed them to be very selective in what clientele they serve. An experienced and well-trained staff handles the day-to-day operations and the location of the operation could not be better. The listing includes the Real Estate, which is a well-maintained building which is located in a mixed-use zone and could also serve as a home for the owner or manager. The sale also includes all inventory and assets. This listing will not last long!

Real Estate Portion – $206,000 (Listing Real Estate Broker: Transworld Commercial Real Estate of Maine)

Business Portion – $293,000

Revenues – $696,000

Discretionary earnings – $105,800

Assets – $25,000

Financial

  • Asking Price: $523,000
  • Cash Flow: $105,000
  • Gross Revenue: $695,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The deal will include inventory valued at $15,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 entirely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or a variety of various other reasons. This is why it is very crucial that you not depend completely on a seller's word, but instead, use the vendor's solution together with your overall due diligence. This will repaint an extra practical picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that revenue margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in new clients? Many times, businesses have repeat consumers, which create the core of their daily earnings. Specific factors such as brand-new competitors growing up around the location, road construction, and employee turn over can influence repeat clients and also adversely affect future revenues. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the local median household earnings effect future income potential?