Listing ID: 83184
Rare opportunity to own two connected fully managed/staffed/equipped SERVPRO franchises in the Chicago area. These SERVPRO franchises are well positioned for continued growth. This SERVPRO franchise benefits from a highly experienced, long tenured, fully managed work force.
SERVPRO franchise owners have all the resources and tools needed to be successful regardless of industry experience. Professional corporate training and seller transition support are available for new owner.
Listed with an Experienced Independent SERVPRO Business Intermediary.
- Asking Price: $1,349,000
- Cash Flow: $400,000
- Gross Revenue: $1,900,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Two Connected Territories
Franchise will provide training
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. However, the real reason vs the one they say to you might be 2 entirely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be justifications to try to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of various other factors. This is why it is really vital that you not count totally on a seller's word, yet instead, make use of the seller's response combined with your overall due diligence. This will paint a more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that earnings margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new customers? Many times, operating businesses have repeat consumers, which form the core of their daily revenues. Particular factors such as brand-new competition growing up around the location, road building, and also employee turnover can impact repeat customers and also negatively affect future earnings. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the opportunity to construct a returning customer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? How might the regional median home income impact future revenue prospects?