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Name:
#2018 B2B Service Business
Categories:
Service
Region:
Colorado Front Range
Industries:
Service
Segments:
Service
Asking Price:
$695,000  
Down Payment:
$140,000  
Revenue:
$ 1,522,216  
Adj. Profit:
$361,043  
Adj. Profit Type:
Seller's Discretionary Earnings  

B2B Service Business - SBA Pre-Qualified. Priced to sell quick due to retirement. This well respected, Denver area S Corporation was founded in 1985 and continues to provide unmatched service to its long-term commercial clients. 90% of the work performed is recurring revenue. This business retains experienced employees, provides reliable service, and stands out as the professional option in their niche. Their differentiated value proposition attracts commercial clients seeking reputable, insured, and capable professionals. Although the business can be relocated, its current 3,678 sf (approximate) leased facility is centrally located near the bulk of its diversified client base. Assets include approximately $31,000 of FF&E and $179,000 of vehicles. Owners will stay for a transition period. Contact Scott A. Densmore. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.