Listing ID: 83787
This Business is an emergency damage restoration and light construction Company servicing the general Minneapolis and St. Paul metropolitan area. Services include water, smoke and fire damage restoration, mold remediation, and an extensive range of construction and building services. Most of the services are provided by dedicated, in-house employees. Established for over 40 years, the Company has a fleet of 12 service vehicles, highly trained and tenured employees, and long-standing relationships with local municipalities and church organizations. There are many opportunities for growth including registration with National Third Party Administrators for additional insurance work. A new owner can also establish additional relationships with local, individual agents. The Seller is available for a longer term transition up to one year.
- Asking Price: $950,000
- Cash Flow: $150,000
- Gross Revenue: $2,300,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The business operates in a leased, 8,156 square foot facility with a base rent of $4,673 plus CAM
Seller will fully train new owner and is willing to consider a transition of up to one year
The venture was founded in 1981, making the business 41 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. Nevertheless, the real factor vs the one they say to you might be 2 entirely different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in profits, or a range of other factors. This is why it is extremely important that you not count totally on a vendor's word, yet rather, utilize the vendor's answer together with your overall due diligence. This will paint an extra sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that revenue margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Many times, businesses have repeat clients, which develop the core of their daily earnings. Specific variables such as new competitors sprouting up around the location, roadway building and construction, and also employee turnover can influence repeat consumers as well as adversely impact future revenues. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business often, the higher the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional median family income impact future earnings potential?