Listing ID: 83675
This 3rd generation family business has produced some of the truly iconic signs in both the Annapolis and greater Maryland venues.
Originally started in the 1930’s by the current owner’s grandfather, this 3rd generation business is built to last with a solid customer base generating recurring revenue, rock-solid partnerships, and an established brand.
- Asking Price: $2,250,000
- Cash Flow: $250,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, current decrease in incomes, or an array of various other reasons. This is why it is extremely essential that you not rely completely on a vendor's word, however instead, use the vendor's solution in conjunction with your total due diligence. This will repaint a more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new customers? Many times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain variables such as new competitors sprouting up around the area, roadway construction, and also employee turnover can affect repeat consumers as well as negatively influence future revenues. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to build a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? How might the local average home income influence future revenue potential?