Highlights of Business
• Business is steadily growing, well established and nicely profitable
• General manager in place and willing to stay on
• Usually Monday through Friday work week only, with occasional weekend work.
• Sales for 2022 are up substantially over 2021 sales to date
• Clean books and records
• Very minimal inventory required
• Seller will train
• Business qualifies for SBA financing, which means lower down payment and longer terms
• Seller will sign a non-compete agreement
History/Operations of Business
The owner started the business in 2009. Most of the company’s business is done within Springfield and the surrounding 50 miles.
The seller is representing that the Discretionary Earnings for the business for 2021 were $368,602, and that they can prove it to a buyer and their accountant's satisfaction. That amount is After deducting the estimated yearly debt service for the purchase of the real estate, in the amount of $50,664. For details about the significance of Discretionary Earnings to a business' value and future and how this earnings level is determined, click on the link.
The seller believes that the sales and profitability of the business could be improved by:
1) Adding a salesperson
2) Taking on more work in one of the services they offer, which would probably require hiring 1 or 2 new employees
3) Add social media advertising. Currently, the business does none.
The business operates from an office and shop that is centrally located to its customers and material suppliers and which is owned by the business. The real estate is available through VR’s sister company Professional Real Estate, LLC for $595,000.
This business qualifies for SBA financing, since it has good books and records, and is priced appropriately for its Discretionary Earnings. The advantages of a business being able to be financed with an SBA-guaranteed loan are:
1) A lower down payment than a seller would require were they providing financing (typically only 10% of the Project Cost is required by SBA rules);
2) A much longer term than a seller would offer (typically 10 years per SBA rules); and
3) A lower interest rate than a seller would typically offer (currently around 8.25%).
Reason for Selling
The owner is moving out of state.
The seller will provide 30 days of dedicated training at no additional cost.
One full time employee serves as general manager. There are 6-8 other full time employees.
Calculation of Price of Business
The price of the business was determined by a business valuation performed by the broker, called a Broker’s Opinion of Value in which the Most Probable Selling Price (MPSP) was determined.
The MPSP for this business was determined to be $1,039,000. A copy of the valuation will accompany the Confidential Business Review of the business.
This is a well-run business with steady growth and good profitability, and which is priced appropriately for its Discretionary Earnings. Buyers who believe it might be a possible fit for them should not delay in taking the next step, which is to arrange to receive the full confidential information package.