Listing ID: 70005
Business to business restaurant hood/ventilation cleaning service. There is a large demand for kitchen exhaust system cleaning to keep up with health and safety codes. The business comes with $100K in equipment and currently has 5 employees (not including the owner who only works part time). The business has been operating since 2010. They did see some slowing during 2019 from employee issues and in 2020 from COVID, but are positioned to bounce back in 2021 now that restrictions are starting to ease. Average if 2018 and 2019 numbers are advertised. Owner will consider 50% seller carry note over 24 months for qualified buyer.
- Asking Price: $145,000
- Cash Flow: $41,064
- Gross Revenue: $405,129
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $500
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Other Business Interests
This Business Is Home Based
This Business Is An Established Franchise
The business was founded in 2010, making the business 12 years old.
The transaction will include inventory valued at $500, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. Nevertheless, the true factor and the one they say to you might be 2 absolutely different things. For instance, they might claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or a range of various other factors. This is why it is extremely crucial that you not rely totally on a vendor's word, however rather, utilize the seller's response along with your general due diligence. This will repaint a much more sensible image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that revenue margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Most times, companies have repeat consumers, which develop the core of their day-to-day revenues. Particular aspects such as new competitors growing up around the location, roadway building and construction, and employee turnover can affect repeat consumers as well as adversely influence future incomes. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business often, the higher the opportunity to build a returning customer base. A final idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood average household earnings influence future revenue potential?