Business Overview

Focusing on lawn equipment and supplies, this facility has averaged over $800,000 in total sales annually over the last 5 years – and that figure includes all of the challenges brought on by COVID including shutting down for a short time, social distancing/customer restrictions, labor/hiring shortages, and supply chain challenges.

First established in the 1960’s, the new buyer will inherit a recurring customer base and established supplier relationships and agreements. This business is primed to jump to new heights with the right owner who has a strong background in sales.

Is that you?

Financial

  • Asking Price: $420,000
  • Cash Flow: N/A
  • Gross Revenue: $550,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $195,000
  • Inventory Included: N/A
  • Established: 1969

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

Divesting Business Interests

Additional Info

The company was founded in 1969, making the business 53 years old.
The deal won't include inventory valued at $195,000*, which ins't included in the asking price.

The real estate is leased by the company for $1,950 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. However, the genuine factor vs the one they say to you may be 2 entirely different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is extremely crucial that you not depend totally on a seller's word, however instead, use the seller's solution together with your overall due diligence. This will paint a more practical picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies borrow money so as to cover things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that profit margins are too thin. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new clients? Often times, operating businesses have repeat clients, which create the core of their daily earnings. Particular aspects such as new competition sprouting up around the area, roadway building, as well as personnel turn over can influence repeat consumers and also adversely affect future revenues. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the opportunity to construct a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood mean house income impact future revenue potential?