Listing ID: 83523
Subject company has provided professional staffing services in the Washington, DC metro marketplace for over 50 years, while adapting as the needs of the market have changed. Today service offerings to clients include temporary staffing, temp-to-hire, and permanent placement in the disciplines of administrative services, legal, accounting, and healthcare. The company is consistently rated among the top staffing agencies in the market by industry sources. The corporate mission statement is to assist organizations in the timely completion of work assignments by providing competent and talented staff, and secondly to aid those seeking employment to become gainfully employed.
- Asking Price: $2,500,000
- Cash Flow: $1,233,885
- Gross Revenue: $10,937,349
- EBITDA: $1,033,885
- FF&E: $20,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: 1970
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:7,573
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Company leases approximately 7,500 square feet of office space in strategic locations throughout the Washington, DC metro area. Rents are currently at market rates. During the Covid pandemic, operations have continued successfully with many employees functioning seamlessly from home-based offices. This operation will continue for the foreseeable future thus reducing office lease expense beginning in the 2022 year and continue into the future.
Owners will be available for transition assistance as desire by the purchaser.
There exists substantial competition within the Washington, DC marketplace. That said, the subject company consistently ranks with the top 25 staffing companies in the market. Company has strong recurring revenue, experienced and tenured managerial staff, and broad scope of staffing services.
Many opportunities for growth exist by increasing networking and participation in trade groups, as well as social media. Additionally, acquiring governmental opportunities and IT/technical/engineering staffing services would be a huge plus.
The company was established in 1970, making the business 52 years old.
The sale does include inventory valued at $2,000, which is included in the requested price.
The business has 12 employees and is situated in a building with approx. square footage of 7,573 sq ft.
The property is leased by the business for $18,143.25 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the true reason and the one they tell you might be 2 entirely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, current reduction in earnings, or an array of various other reasons. This is why it is really vital that you not rely completely on a seller's word, yet instead, utilize the seller's solution in conjunction with your general due diligence. This will paint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover items such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too tight. Many companies come under 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 think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new clients? Most times, companies have repeat consumers, which form the core of their everyday earnings. Specific aspects such as new competition growing up around the area, road building, and also employee turn over can affect repeat clients and adversely influence future incomes. One vital thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood average home earnings influence future income potential?