Business Overview

This well-established sign manufacturer has worked with an estimated 5,000 clients over the past 18 years. The franchise has a diverse client base across many different industries including higher education, libraries, non-profits, churches, healthcare, local municipalities, waste management, and school districts. This business has proven itself to be COVID resistant with gross sales increasing by nearly 10% in 2020. While sales have decreased compared to 2020, profit margins have significantly increased due to focus on inhouse products and existing clients are already building in signage work into their 2022 budgets. This is a great acquisition for a qualified buyer looking to purchase a reputable business in the growing signage industry. The owners would like to retire soon and will help in the transition process (time negotiable). The franchisor will also provide in-depth training and is approved by the SBA for financing (local SBA lenders who have reviewed the financials are available upon request).

Financial

  • Asking Price: $495,000
  • Cash Flow: $246,197
  • Gross Revenue: $726,028
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Owner is retiring.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was established in 2003, making the business 19 years old.

The business has 4FT, 1PT employees and is located in a building with estimated square footage of N/A sq ft.
The real estate is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell operating businesses. However, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or an array of other reasons. This is why it is extremely crucial that you not count entirely on a vendor's word, yet rather, utilize the vendor's solution along with your general due diligence. This will repaint an extra sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract new clients? Most times, operating businesses have repeat customers, which create the core of their daily revenues. Certain factors such as new competition growing up around the location, roadway construction, and also employee turnover can affect repeat consumers and negatively influence future incomes. One important point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the possibility to develop a returning customer base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood mean home earnings influence future income potential?