Listing ID: 83844
Well established and profitable Waste Management business. Company is fully equipped with multiple service trucks and has over 100 porta-potties available for rentals. Trucks, equipment and the porta-potties rental units are included in the asking price. The staff is likely to stay during and after ownership transition.The company has continued to grow as of May,2020 amid these uncertain times with the Novel Corona virus pandemic and high political tensions, and even achieved strong Q1 results.
- Asking Price: $600,000
- Cash Flow: N/A
- Gross Revenue: $523,465
- EBITDA: N/A
- FF&E: $320,000
- Inventory: $40,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The deal shall include inventory valued at $40,000, which is included in the requested price.
The company has 6 employees and resides in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. However, the true reason vs the one they tell you might be 2 absolutely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of various other factors. This is why it is extremely vital that you not depend entirely on a vendor's word, however instead, make use of the seller's answer in conjunction with your overall due diligence. This will paint a much more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that earnings margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new customers? Most times, operating businesses have repeat customers, which create the core of their day-to-day profits. Particular factors such as new competitors growing up around the location, road building, and personnel turn over can affect repeat customers and adversely impact future profits. One important thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the opportunity to develop a returning client base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the regional typical home earnings effect future earnings potential?