Listing ID: 84054
This is a unique opportunity to acquire a profitable firm with a large backlog of six-figure signed engagements and a stable staff of experienced architects and designers. Well-known in its market area, the firm is called by clients regularly for new-builds and extensive renovations or expansions of large homes in the area. There is also a small component of public, institutional, and commercial work. Make your move now for a better quality of life in an area with tremendous educational and cultural attractions.
We have so much more information about this business that we want to share with you including a full summary and revenue expense breakdown. But this is a very confidential listing. So in order to share the details with you we will need you to fill out the “Contact the Seller” area on this page and provide the requested information. You will be asked to sign a non-disclosure agreement.
- Asking Price: $239,000
- Cash Flow: $76,000
- Gross Revenue: $840,000
- EBITDA: N/A
- FF&E: $70,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business is based in leased office space just off the main street in a lively western Massachusetts town close to the New York border. The building is newly re-designed and exemplifies the clean, on-trend architectural work done by the firm. There are two floors with work cubicles, a semi-private office, library and resource area, and a meeting area.
Seller will provide ongoing transition assistance, introduce existing clients which represent a large pipeline of business, and assist with new business development for a period to be determined.
The seller is retiring.
The firm is largely residential-focused but has an important public/commercial component. It serves an area characterized by a large number of second-home residences owned by affluent people from New York and New England. The extensive cultural, educational, and outdoor attractions bring many people for short and long visits as well as for retirement. The large parcels lend themselves to large, commodious homes with outbuildings, garages, art and music studios, and sports facilities.
The business has a backlog of hundreds of thousands of dollars of signed engagements and is continuing to accept retainers from new clients for projects stretching well into 2022 and beyond. They are currently recruiting additional architects beyond their current staff of 8, many of whom have been with the firm for several years.
The venture was started in 1988, making the business 34 years old.
The company has 8 employees and resides in a building with approx. square footage of 1,800 sq ft.
The real estate is leased by the company for $2,400 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nevertheless, the real factor and the one they say to you may be 2 totally different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be excuses to try to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of other factors. This is why it is extremely vital that you not count entirely on a seller's word, yet instead, utilize the seller's answer combined with your overall due diligence. This will paint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover items such as stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that profit margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be met or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new customers? Most times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Specific factors such as brand-new competition sprouting up around the area, road building, and also staff turn over can affect repeat consumers and negatively affect future revenues. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the local mean family income effect future income prospects?