Listing ID: 83913
Custom made drilling rig, pickup and rig trailer, soil boring materials, testing equipment and list of 1,500 customers. Three employees, two with over 25 years with company who will stay. Owner is willing to stay on to introduce new owner to clients. Current owner in business for over 25 years of profitable operations. Owner ready to retire. Current owner acquired the business from the previous owner who founded the business 35 years ago who retired.
- Asking Price: $275,000
- Cash Flow: $300,000
- Gross Revenue: $300,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Equipment and supplies stored in small building (Home Based)
Owner willing to stay on to provide orderly transition and introduction to clients.
Established profitable business for over 25 years
This Business Is Home Based
The company was founded in 1985, making the business 37 years old.
The sale will include inventory valued at $100,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nevertheless, the genuine reason and the one they say to you might be 2 totally different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in incomes, or a variety of various other reasons. This is why it is really important that you not depend entirely on a vendor's word, yet rather, utilize the vendor's solution along with your overall 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 lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover things like supplies, payroll, accounts payable, etc. Remember that in some cases this can imply that profit margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new clients? Many times, operating businesses have repeat consumers, which form the core of their day-to-day earnings. Particular variables such as brand-new competitors sprouting up around the area, road construction, and also staff turn over can influence repeat customers and also negatively impact future earnings. One essential point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the possibility to build a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local average household earnings influence future income prospects?