Listing ID: 83617
Full-service floor covering retailer with 30 years of experience servicing residents of Anne Arundel County, MD. Whether you need carpet, hardwood, tile, laminate or custom rugs, this company has samples for you to see, touch, and stand on in their showroom.
Because of a helpful staff, strong installation team, and the owner’s commitment to the local community, most sales are through word of mouth and repeat customers.
Sales have been especially strong the last few years as the housing market has remained hot.
This is a great business for someone with a strong sales background, and/or lots of connections with realtors and general contracting firms.
The business has been around for 30 years, with the owner being very active in the local business community. Because of this, a majority of the sales are currently from repeat business.
The company stands out because of how well established it is, and how well respected the owner, is. New ownership will be able to build from that foundation until they are able to forge their own relationships – which the current ownership is willing to help with.
The real estate market continues to be hot. Growing relationships with realtors and general contractors will drive future growth.
- Asking Price: $275,000
- Cash Flow: $114,452
- Gross Revenue: $952,625
- EBITDA: N/A
- FF&E: $7,300
- Inventory: $30,000
- Inventory Included: Yes
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1991, making the business 31 years old.
The transaction will include inventory valued at $30,000, which is included in the listing price.
The business has 4 employees and is located in a building with estimated square footage of N/A sq ft.
The property is leased by the business for $3,900 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 completely different things. For instance, they might state "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is very crucial that you not depend completely on a vendor's word, but instead, use the vendor's answer combined with your total due diligence. This will paint a more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that profit margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new customers? Most times, operating businesses have repeat customers, which develop the core of their day-to-day earnings. Particular factors such as new competition sprouting up around the area, road construction, as well as employee turn over can influence repeat customers and negatively impact future earnings. One crucial thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the greater the chance to construct a returning client base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local typical home earnings influence future revenue potential?