Listing ID: 83963
Business Overview
We are pleased to offer an established, profitable, attractively priced locksmith business. The company, with two full-time employees, is located in a retail strip mall in a desirable area of Kent County in West Michigan.
The business deals with commercial, residential, and automotive customers, to name a few. With a retail storefront and 24/7 mobile lockout, this full-service locksmith has a lot to offer a prospective buyer. An A+ rating by the Better Business Bureau is complimented by 4.6 star rating and positive Google Reviews.
No trade experience is required to assume the ownership role in this business. The current owner, who needs to relocate out of state to address family matters, has set you up with a favorably priced, turnkey opportunity. Equipment, inventory, and an established lease are coupled with two experienced locksmiths on staff. And an excellent dedicated website comes with the business.
Helping customers gain entry to their car, home, or business may be top of mind when one thinks about calling a locksmith. This business in addition takes it an extra step with a variety of in-store services including:
-Lock Repair, Service, and Rekey
-Key Cutting and Duplication
-Automotive Key Repair and Replacement
-Programming of Your Car keys, Remotes and Fobs
Now let’s get to the numbers. Gross sales for the last three years have averaged $300,000. 2021 has been solid on a year-to-date basis with the business forecasted to surpass $300,000 in revenues. SDE (seller’s discretionary earnings = the normalized, historical cash flow available to pay an owner-operator and service debt) has been tracking the past 18 months at an impressive $110,000 annualized rate.
This bankable business is priced at $250,000 and to sweeten the pot, the current owner is offering a 10% seller note to match the buyer’s $25,000 down payment. A solid buyer should be able to obtain a $200,000 SBA bank loan to round out the $250,000 purchase price. The Buyer would assume a $1,200 per month triple net lease in a West Michigan strip mall. The goodwill of the business is augmented with staff, inventory, and a mobile service vehicle.
For more on this attractive business opportunity contact Ryan Johnson (rjohnson@praxisbusinessbrokers.com or 269-338-9809)
Financial
- Asking Price: $250,000
- Cash Flow: $110,000
- Gross Revenue: $300,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Located in a retail strip mall in a desirable area of Kent County in West Michigan
Relocation
Additional Info
The company has 2 employees and is situated in a building with estimated square footage of N/A sq ft.
The property is leased by the company for $1,200 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell operating businesses. Nonetheless, the true reason and the one they tell you may be 2 completely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current reduction in profits, or a variety of various other reasons. This is why it is really essential that you not rely totally on a vendor's word, but rather, make use of the seller's answer along with your total due diligence. This will paint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover items like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may 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 might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new customers? Most times, businesses have repeat consumers, which create the core of their daily earnings. Particular factors such as brand-new competition growing up around the area, roadway construction, and personnel turnover can impact repeat consumers as well as adversely influence future revenues. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to build a returning client base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood mean household income influence future income potential?
