Listing ID: 67415
2021 Sales: $1,319,000 YOY Gross Sales Up 88%!
We are a growing North American painting franchise with a primary focus on helping our franchisees meet and exceed their financial, professional and personal goals. Our expertise lies in providing exactly the right tools, support and environment to turn those goals and dreams into a reality. We see it happen every day. Why shouldn’t it happen to you?
- Asking Price: $598,500
- Cash Flow: N/A
- Gross Revenue: $1,319,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nevertheless, the true reason and the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a range of various other reasons. This is why it is extremely vital that you not count absolutely on a seller's word, however instead, use the seller's answer along with your overall due diligence. This will paint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that revenue margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new customers? Most times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Specific aspects such as new competition sprouting up around the location, roadway construction, and also employee turnover can affect repeat consumers and negatively influence future incomes. One vital point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median home earnings effect future earnings potential?