Listing ID: 83540
A successful, mainly residential remodeling business serving the DC Metro area. With minimal marketing efforts the team has built strong referral partners which continue to support the business growth. The business has great performance records and completes work for private payors, non-profits, and state funded Medicaid programs.
Dedicated to delivering the best solution for their clients, the goal of the team is to deliver complete customer satisfaction for each project, providing quality workmanship, affordable pricing, and excellent customer service. This business has high sales and profit margins and opportunity to expand service areas for clients.
The business is ran semi-absentee with well trained staff in place. The owner is willing to train the buyer and consult for several months to help with business transition.
2019 Sales: $4,081,414
2019 SDE: $1,239,726
Projected 2020: ~$2,000,000 – due to Covid-19 shutdown. Remodeling work is postponed providing a strong backlog
# of Employees: 8
- Asking Price: $4,000,000
- Cash Flow: $1,239,726
- Gross Revenue: $4,081,414
- EBITDA: N/A
- FF&E: $206,000
- Inventory: $200,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The company was established in 2004, making the business 18 years old.
The deal does include inventory valued at $200,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 entirely different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, current reduction in incomes, or an array of various other factors. This is why it is extremely important that you not count absolutely on a vendor's word, but instead, utilize the vendor's answer combined with your overall due diligence. This will paint a much more reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise 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 agreements with suppliers that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new clients? Most times, companies have repeat customers, which develop the core of their day-to-day profits. Certain variables such as brand-new competitors sprouting up around the area, road construction, as well as personnel turnover can affect repeat clients and also negatively affect future incomes. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the better the chance to build a returning client base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Exactly how might the local median household earnings impact future revenue prospects?