- Business is operated with just a handful of employees besides the owner
- Immediate profitability – take over one day, be profitable the next
- Seller will train
- SBA financing available, which means lower down payment requirements and longer terms
- Business not open evenings or weekends
- Seller will sign a non-compete agreement
A+ rating with the Better Business Bureau
The seller is representing that the Discretionary Earnings for this business for 2019 were $108,776, and that they can prove it to a buyer and their accountant's satisfaction. That is a 38% increase over the Discretionary Earnings for 2018.
Discretionary Earnings, also known as Cash Flow to Owner, or Total Owner Benefit, is the amount after all expenses that would have been available to a different owner had they operated the business no better nor worse than the current owner, to do two things:
To service the debt on a loan taken out to buy the business and pay a salary to a themselves.
The estimated yearly debt service on the loan is $23,920. So, the amount in 2019 that would have been available for owner salary would have been $84,856, before income taxes.
The estimated down payment for this business is $22,133, if $15,000 of working capital is borrowed.