Listing ID: 83682
This community driven company is the only game in town when it comes to shipping, notary, laminating, blueprint copying and more. For over 15 years, it has provided the foundational services to keep the local business community buzzing. And the community knows it – ask the owners about residents giving THEM money out of THEIR PPP checks!
But now with the COVID restrictions loosening, its time for a younger owner to take the reigns and drive the next decade of growth.
Opportunities for growth include building the store’s internet presence and expanding to include online sales. But to make it work, any owner would be REQUIRED to continue to invest in the local community businesses, and the good people that run them.
- Asking Price: $200,000
- Cash Flow: $8,233
- Gross Revenue: $118,653
- EBITDA: $8,233
- 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 why individuals resolve to sell companies. Nevertheless, the real factor and the one they tell you might be 2 totally different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of other factors. This is why it is very important that you not depend absolutely on a vendor's word, but rather, utilize the vendor's solution combined with your general due diligence. This will paint a more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that profit margins are too small. Many businesses come under 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 take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new consumers? Most times, businesses have repeat clients, which form the core of their everyday revenues. Certain factors such as new competitors sprouting up around the location, road building and construction, and also staff turn over can influence repeat clients and negatively affect future revenues. One crucial thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the greater the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the regional typical family earnings influence future revenue prospects?