Listing ID: 82745

Business Overview

This company provides a wide range of appliance and television and other entertainment products from a small town home base. Minimal competition, exceptional service going on now for 20 years. Friendly and knowledgeable staff have helped the owners enjoy continuous success through those years. Owner seeks retirement but will conscientiously remain with new owner to insure smooth transition.

Service is a key and profitable component and leads to increasing sales of appliances from more and more satisfied customers. Reputation of the company is tops. A new owner who commits to the same level of service will enjoy revenues from new businesses and employees moving into this desirable area in central Missouri.

Financial

  • Asking Price: $725,000
  • Cash Flow: $191,000
  • Gross Revenue: $1,968,000
  • EBITDA: N/A
  • FF&E: $125,000
  • Inventory: $125,000
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will train in all aspects of business operations, including appliance sales, service, scheduling, inventory control, accounting. Knowledge of refrigeration service will be helpful to new owner.

Purpose For Selling:

Retirement

Pros and Cons:

Almost none except 25-30 miles away. Really on some of the services rendered this is literally the only game in town. The company carries several lines of appliances and television products, suitable for a variety of budgets. This is the go-to company for its products and services over a wide geographic area.

Opportunities and Growth:

Really, just keep doing what they have been doing: offer fair pricing, exceptional home service and enough variety of products to meet consumer needs. Pandemic has been challenging for all companies as far as receiving product, but the owner has wisely ordered ahead and stayed on top, having product on hand rather than having to rely on uncertain delivery. Situation should improve over time.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was established in 2003, making the business 19 years old.
The deal shall not include inventory valued at $125,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. However, the real reason and the one they tell you may be 2 entirely different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is really vital that you not count totally on a seller's word, yet instead, utilize the seller's answer in conjunction with your overall due diligence. This will paint an extra reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, and so on. Remember that in some cases this can suggest that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new customers? Many times, operating businesses have repeat clients, which create the core of their everyday profits. Particular factors such as new competitors sprouting up around the location, road building and construction, as well as personnel turn over can impact repeat customers as well as negatively impact future earnings. One important thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the higher the possibility to construct a returning customer base. A last idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the regional typical family income impact future income prospects?