Listing ID: 83992
Established over 70 years ago, M SUPPLY COMPANY is a family owned wholesale business for plumbing, heating, cooling, HVAC, water-well and excavation supplies in Northeastern Michigan. The Company has enjoyed many years of success and continued growth by building a fine reputation with the contractor trade through a traditional approach of superior customer service, knowledgeable staff and quality products at competitive pricing. Business expansion in 2006 now offers M’s KITCHEN & BATH STUDIO, a well-appointed retail showroom specializing in cabinetry, countertops, plumbing fixtures and custom tile for kitchen and bath remodel or new build projects by offering major brand names and design services by qualified and professional staff. The showroom is housed in a 4,000 SF updated facility.
FOR SALE as a package of two buildings on 3.55 acres and established business entity or real estate only. Perfectly Designed and Constructed and Perfectly Maintained with excellent exposure, conveniently accessible to I-75.
- Asking Price: $875,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. Nonetheless, the real reason and the one they tell you may be 2 entirely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or a range of other factors. This is why it is really crucial that you not rely completely on a vendor's word, but instead, make use of the vendor's response in conjunction with your general due diligence. This will paint an extra realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too tight. Many organisations fall 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 obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new consumers? Often times, operating businesses have repeat clients, which develop the core of their daily revenues. Specific variables such as brand-new competition sprouting up around the location, road construction, as well as personnel turnover can impact repeat consumers as well as adversely impact future profits. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood mean home income effect future revenue prospects?