Listing ID: 83672
This family owned and operated business has been providing carpet, rug, and upholstery cleaning to the DC metropolitan area for 10 years. The company invests in the best cleaning technologies to deliver great results with the lowest possible environmental impact. The focus has been mainly on residential customers but there is also some commercial work. Lead technicians are specifically certified in carpet cleaning by the IICRC – The Institute of Inspection, Cleaning, and Restoration Certification.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: $205,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Travel and pursue other interests
The venture was established in 2012, making the business 10 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 completely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a range of various other factors. This is why it is very crucial that you not count totally on a vendor's word, but instead, use the vendor's solution in conjunction with your overall due diligence. This will repaint a much more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean 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. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new customers? Often times, companies have repeat clients, which develop the core of their everyday earnings. Certain variables such as brand-new competition sprouting up around the area, roadway construction, and personnel turn over can affect repeat customers as well as negatively affect future earnings. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood average house income impact future income prospects?