Listing ID: 83551
Thirty year old award winning architectural millwork company serving primarily repeat commercial clients. Very profitable with growing revenue. Strong customer repeat business. State of the art equipment. Very identifiable commercial and government projects. Excellent name and quality product reputation.
- Asking Price: $2,000,000
- Cash Flow: $600,000
- Gross Revenue: $2,200,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $20,000
- Inventory Included: N/A
- Established: 1988
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:20,650
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The property is improved by two buildings of brick and block construction with shingles over roof trusses. The owner occupies the entirety of building one and leases from a wholly owned entity. Building two has 4,000 square feet leased to a popular regional brew pub and 4,000 square feet of vacant office space on the second level.
Owners will provide transition training as desired to buyer.
Owners desire to retire.
Although there are competitors in the region, owners have been established for over 30 years. The owners maintain a comfortable revenue and profitability level and have not desired to further grow the business. The business currently has no marketing, other than word-of-mouth.
The business can be grown and expanded through updated marketing programs, supplementing its current word-of-mouth strategy.
The company was started in 1988, making the business 34 years old.
The sale doesn't include inventory valued at $20,000*, which ins't included in the suggested price.
The business has 9 employees and resides in a building with disclosed square footage of 20,650 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. However, the true reason vs the one they say to you might be 2 completely different things. For instance, they might claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to try to hide the reality of altering demographics, increased competitors, current reduction in profits, or a range of other reasons. This is why it is extremely crucial that you not count absolutely on a vendor's word, but instead, use the seller's solution in conjunction with your general due diligence. This will repaint a much more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover items like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that revenue margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new consumers? Many times, companies have repeat consumers, which develop the core of their daily profits. Certain variables such as brand-new competitors growing up around the location, road building and construction, as well as staff turnover can affect repeat clients and adversely impact future profits. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local median home income impact future earnings prospects?