Listing ID: 84145
Family owned and operated agricultural services company with diverse offerings and longstanding customer relationships over 20 years of operation. Operations include harvesting services and equipment rental, seed services, chemical sales and application, yield mapping, logistics, forage harvesting, and equipment repair and servicing. Assets include a fleet of semi tractor-trailers, silage trailers, harvesting equipment, grain storage hoppers, and a variety of farm and shop equipment with an appraised value in excess of $1mm.
Opportunity to expand the reach of this well regarded company by leveraging positive local goodwill to increase services offered. Streamlining current operations by identifying and focusing on profitable revenue streams. This business is brimming with local goodwill and demand for services, and is ripe for new ownership to grow the company. Current company culture is family oriented, with many dedicated members ready to continue working under new ownership.
- Asking Price: $1,600,000
- Cash Flow: $241,000
- Gross Revenue: $2,049,000
- EBITDA: N/A
- FF&E: $650,000
- Inventory: $300,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Full suite of industrial repair and service equipment, fleet of tractor trailers, and a variety of agricultural equipment comes included in the purchase price.
Owner is willing to stay on for a period of time to help with transition
Moving to Other Projects
This company is well established and has a stellar reputation in the community.
Primed for growth by targeting profitable revenue streams and expanding current operations.
The sale shall include inventory valued at $300,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is extremely vital that you not rely absolutely on a seller's word, yet rather, utilize the seller's solution in conjunction with your general due diligence. This will paint a much more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new clients? Most times, companies have repeat customers, which create the core of their day-to-day revenues. Specific aspects such as brand-new competition growing up around the location, road building and construction, and staff turnover can influence repeat clients and negatively impact future earnings. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the chance to develop a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional median family earnings influence future revenue potential?