Listing ID: 83495
The future owner(s) of this well-established business will benefit from the following:
* Turnkey business with a long-term customer base.
* A reputation for quality work and honesty.
* 10+ years of success.
* Diversified menu of services.
- Asking Price: $425,000
- Cash Flow: $111,700
- Gross Revenue: $396,900
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Current owners want 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.
Owner is retiring.
The business has 8 employees and is situated in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the real reason and the one they tell you may be 2 completely different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other reasons. This is why it is very important that you not count completely on a vendor's word, but instead, utilize the seller's answer together with your general due diligence. This will repaint a much more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that earnings margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new consumers? Often times, operating businesses have repeat clients, which form the core of their everyday earnings. Particular factors such as new competitors growing up around the area, road building, and personnel turnover can influence repeat customers and also negatively impact future incomes. One essential thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the opportunity to build a returning consumer base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average family income influence future revenue prospects?