Listing ID: 83488
The future owner of this business will benefit from the following:
• Competitive price point.
• Turnkey business with long-term customer base.
• Reputation for dependability and attention to detail.
• Well-established business with 25+ years of success.
- Asking Price: $255,000
- Cash Flow: $115,916
- Gross Revenue: $397,356
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The current owner wants the business to be a success for the new owner(s), its employees, and its customers. As such, they are willing to assist in the training and transition of the business.
The owner is retiring.
This business has carved out a unique niche with no regional competition.
The business has 2 employees and is located in a building with estimated square footage of N/A sq ft.
The real estate is leased by the business for $750 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. However, the genuine factor vs the one they say to you may be 2 absolutely different things. As an example, they might say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in profits, or a variety of various other factors. This is why it is extremely vital that you not count completely on a seller's word, yet rather, make use of the seller's answer together with your total due diligence. This will paint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover things such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new clients? Most times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain elements such as new competition growing up around the location, road building, and also personnel turn over can influence repeat consumers as well as adversely impact future incomes. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the chance to build a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the neighborhood typical family earnings impact future revenue prospects?