Business Overview

A strong, small-quantity metal supplier, known for providing the products and services customers need. They occupy a niche in a $189 billion industry. A stable, proven, B2B business concept. In the top 7% of US franchises for its national brand. Price includes a supplied $100,000 of working capital. Real estate available (9100 sq ft) for an additional $335,000. Business has been pre-qualified for an SBA loan with $181,000 down.

Financial

  • Asking Price: $1,427,000
  • Cash Flow: $401,220
  • Gross Revenue: $2,233,681
  • EBITDA: N/A
  • FF&E: $165,000
  • Inventory: $580,000
  • Inventory Included: Yes
  • Established: 2011

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:9,100
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Seller relocation

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was founded in 2011, making the business 11 years old.
The transaction will include inventory valued at $580,000, which is included in the suggested price.

The business has 7 employees and is situated in a building with approx. square footage of 9,100 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. However, the true factor vs the one they say to you may be 2 absolutely different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in profits, or a variety of other factors. This is why it is very important that you not depend absolutely on a vendor's word, however instead, use the vendor's response in conjunction with your overall due diligence. This will paint an extra practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover points like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that earnings margins are too tight. Numerous organisations fall into 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 consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract brand-new consumers? Most times, companies have repeat clients, which create the core of their daily profits. Specific elements such as brand-new competitors growing up around the area, road building, and personnel turnover can influence repeat consumers as well as adversely influence future revenues. One vital point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the better the opportunity to build a returning customer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local average home income influence future revenue potential?