Listing ID: 83904
A business that does $1,500,000 a year in sales. Has a used car license. Same owner for 25 years.
- Asking Price: N/A
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: $420,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1997
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Hoists, paint booth, compressors, work benches, diagnostic computers , pipe bending machines, welding equipment toolls.
Owner wants to retire.
2 nd largest auto repair facility in the area.
The business was established in 1997, making the business 25 years old.
The company has 6 employees and resides in a building with disclosed square footage of 10,000 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nevertheless, the true reason vs the one they tell you might be 2 totally different things. For instance, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, current reduction in incomes, or a variety of various other reasons. This is why it is very important that you not depend absolutely on a seller's word, but instead, utilize the seller's solution along with your overall 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 many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that profit margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new customers? Most times, operating businesses have repeat clients, which create the core of their everyday profits. Particular elements such as brand-new competition sprouting up around the location, roadway construction, and employee turn over can affect repeat consumers as well as adversely influence future incomes. One essential thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the chance to construct a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the neighborhood average household income effect future revenue potential?