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Asking Price$295,000
Revenue | $356,633 |
Established | 2004 |
Cash Flow | $110,221 |
Employees | 1 part-time |
FF&E | $5,000* |
Franchise | No |
Inventory | Undisclosed |
Relocatable | Yes |
Real Estate | Undisclosed |
Home-based | Yes |
* Included in Asking Price
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Publication for the Colorado Springs area is now available for acquisition. The owner has made almost $100,000 in profit annually each of the last four years with an 8.4% increase since 2013! This business is supported financially by ad sales to the tune of $356,633 in 2015. 90% of the 58 companies advertising in the publication are on 12 month contracts. The current owner lives out of town working remotely for approximately 5 hours each week and is selling due to divestment. An owner who is local or has a vested interest in the Colorado Springs area would have unlimited growth opportunities simply by being involved in the community. Printing, national editorial columns and graphic design is done through a central office, so an incoming owner would focus on oversight and local ad sale. Office space located in the city runs only $700/month for a lease, with $5,000 in office equipment, software and furnishings included in the purchase price of the business. The magazine currently employs the owner, one full-time salesperson and one part-time operations manager. Four or five stories focusing on businesses local to Colorado Springs are written by one of the 1099 subcontractors who interview and write the stories. Distribution is scheduled through the office to deliver magazines to 620+ business locations and mailed to 1,600 doctors, dentists and beauty salon/spa waiting rooms in the Colorado Springs area. With no salesperson, a buyer’s net profit after loan payments and business expenses would be a Net Operating Income (NOI) of $67,528 each year. Based on a down payment of $59,000 (20% of the purchase price), this is a 114% return on investment (ROI). With one salesperson, a buyer’s net profit after loan payments and business expenses would be a Net Operating Income (NOI) of $42,693 each year. Based on a down payment of $59,000 (20% of the purchase price), this is a 63% return on investment (ROI).
Financial Overview List Price: $295,000 Gross Sales 2015: $356,633 2014: $335,833 Owner Profit/Cash Flow 2015: $80,100 [No Salesperson: $110,221] 2014: $65,670 [No Salesperson: $96,518] 2013: $63,588 [No Salesperson: $92,744] Profit Margin: 37% Multiple: 3 *Multiples range from 1-5, with the average being 3 Valuation: 2015 Cash Flow x Multiple = Price $110,221 x 3 = $330,663
Assets Included in Purchase: $28,755 Equipment: $5,000 in office equipment including 3 Apple computers, two printers and complete package of office furniture, software Intangible Assets: Existing ad contracts, complete printing and distribution network, full training and support from Seller A/R: $23,755 *amounts may vary
Funding Example Purchase Price: $295,000 20% Buyer Down Payment: $59,000 15% Seller Financing: $44,250 65% Bank Loan: $191,750 In the above example, with no salesperson, a buyer’s net profit after loan payments and business expenses would be a Net Operating Income (NOI) of $67,528 each year. Based on a down payment of $59,000 (20% of the purchase price), this is a 114% return on investment (ROI). In the above example, with one salesperson, a buyer’s net profit after loan payments and business expenses would be a Net Operating Income (NOI) of $42,693 each year. Based on a down payment of $59,000 (20% of the purchase price), this is a 63% return on investment (ROI). Business Information Year Established: 2004 Location and Service Area: Colorado Springs Number of Clients: 58 advertisers - 90% have 12-month contracts Distribution: Hand-delivered to 620+ locations, mailed to 1,600 doctors, dentists and beauty salon waiting rooms Lease: Only $700/month for office space Reason for Selling: Divestment; currently being run absentee Employees: 1 FT Salesperson, 1 PT Operations Manager; freelance writers (1099) Non-Paid Seller Training Period: 90 days of training Growth Opportunities: Owner in city selling ad space and maintaining relationships Current Owner’s Responsibilities: Works 5 hours remotely new owner-operator would work part-time in Co Springs
Facilities: | Only $700/month for office space; could easily be home-based or housed within another office |
Growth Potential: | Owner in city selling ad space and maintaining relationships |
Training/Support: | 3-6 months |
Sale Reason: | Divestment; currently being run remotely from out of town |
Ad #77781
Seller Reference #ADV010
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