Listing ID: 83778
The owner started this cleaning company in the early 80’s doing carpets, furniture, walls, floors and furnace air ducts. As the business grew rapidly from the premium customer service they added restoration services. The restoration division of the company has become a anchor for the business generating approximately 70% of the revenue and comes mostly from insurance work. They try to stay within a 75 mile radius of their community, but will go where the jobs take them.
- Asking Price: $630,000
- Cash Flow: $168,690
- Gross Revenue: $514,235
- EBITDA: N/A
- FF&E: $135,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1980
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The business location is located on one of the main arteries through the city. There is ample front office area and room for supplies and and equipment along with room to store two vans inside the building.
Will train for 2 weeks @ $0 cost. This is a people business so good communication and sale skills would help the new owner succeed. There no special license required but experience in the industry would be recommended. There are two crews who do most all the cleaning and restoration. 3 of the 4 employees will likely stay on. Some of the restoration work is hired out to subcontractors.
This is a very competitive industry but this business has a excellent reputation.
There will always be a demand for this type of business because of it's diverse number of services which appeals to many prospects.
The business was established in 1980, making the business 42 years old.
The sale does include inventory valued at $5,000, which is included in the asking price.
The company has 4 FT employees and is situated in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell businesses. Nonetheless, the real factor vs the one they say to you might be 2 entirely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or an array of other factors. This is why it is very vital that you not depend absolutely on a vendor's word, however rather, utilize the seller's solution in conjunction with your total due diligence. This will paint an extra practical picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that revenue margins are too small. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their everyday earnings. Specific variables such as brand-new competitors sprouting up around the area, road building, and also employee turnover can influence repeat customers and adversely impact future revenues. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the better the opportunity to develop a returning consumer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional mean family earnings impact future revenue potential?