Listing ID: 82458

Business Overview

Security technology has become a necessity for business owners to operate safely in today’s climate. This industry has evolved rapidly in recent years with advancements of technology. Installing new and updating older systems are in high demand, which is consistent and resilient even in a down economy. Transactions ranging from $400 to $200,000 provide consistent, predictable profit margins. The franchisor generates 20% of the sales through national accounts.

No experience required. Current owner had no industry experience and grew business to $900K in four years. This franchise has focused on providing security products for 70 years. Combined buying efforts insures the best pricing for materials. Tech support from industry experts is available to assist when you need it. Proven sales and marketing programs are available when you’re ready to grow.

Financial

  • Asking Price: $625,000
  • Cash Flow: $304,807
  • Gross Revenue: $966,200
  • EBITDA: N/A
  • FF&E: $75,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2017

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:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is set up for mobility and low overhead. A smaller B or C class commercial space is needed for office and basic inventory storage.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. This franchise offers educational resources and programs for you and your employees. The installation of these security products requires no special license when recruiting new talent.

Purpose For Selling:

Has committed to another business opportunity outside this industry.

Pros and Cons:

The industry is in a period of transformation with new technology powering growth. Fragmented local providers are considered the competition. This company continues to build brand recognition with its national footprint and growth. The organization leadership is involved with cutting-edge industry technology which allows the local owner to focus on customers and the needs of the business.

Opportunities and Growth:

Business can grow organically by hiring additional technicians and a salesperson or can be ramped more quickly by purchasing available territories in neighboring states. Business is stable and profitable. Perfect timing for a new owner.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 2017, making the business 5 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. However, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is really essential that you not count totally on a vendor's word, yet rather, make use of the seller's solution along with your total due diligence. This will repaint an extra realistic image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that profit margins are too small. 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 likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be satisfied or may result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday revenues. Specific elements such as brand-new competitors sprouting up around the area, roadway construction, and staff turn over can affect repeat clients and negatively influence future incomes. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to construct a returning client base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the regional mean house earnings influence future revenue potential?