Highlights of Business
• Well-established business
• Lots of upside potential
• Flexible working hours for owner
• Seller will finance
• Opportunities for free or low-cost vacations for owner
• Seller will thoroughly train buyer
• Name of business is federally trademarked
• Over 10,000 names of previous customers and inquirers in database
History of Business
The owner started the business in 1994, and now wishes to retire. The business was expanded 2 years ago by adding an additional product.
Many of the company’s sales are made online, but some customers visit the company’s office.
The business uses outside sales agents around the U.S., who are independent contractors, who are paid a commission on sales.
The company’s primary customers are individuals and couples, but the business also assists many corporate and other group customers.
Discretionary Earnings Calculations
Reason to sell
The seller of this business is representing that the Discretionary Earnings of the business for 2013 were $52,578 and that they can prove it to a buyer and their accountant’s satisfaction. That is the amount which a buyer would have had available to pay themselves a salary, service the debt from purchasing the business, and provide a Return on Investment on their down payment, had they owned the business in that period and operated it no better nor worse than did the seller.
Support and training
: The seller will provide thorough training free of charge to a buyer after closing, and will sign a non-compete agreement with terms of 3 years for the entire United States. The seller also wishes to remain with the company as an independent sales agent, and there is one event already scheduled that they will want to continue to manage.
: Because the owner believes in the future viability and success of this business, they are offering to finance its purchase, with a down payment of $54,950, with the balance being financed over 60 months at 7% interest, with a balloon payment at the end of 36 months.
: There are several ways in which this business could be improved.
: There are several competitors to this business in the U.S. Some are larger and some are smaller.
: This business operates from a 750’ leased space in an upscale, recently built strip center that faces a major city street. Rent is $966 per month, including CAM charges. The lease expires July 31, 2016. An offer to purchase this business should include a contingency that the buyer would be able to obtain a lease or lease assignment acceptable to them in all respects.