Delivery Service with Regularly Scheduled Pickups and Deliveries

Highlights of Business
• Business is well established (39 years) and growing steadily
• Substantial recurring revenue (88% of total in 2022)
• Few employees
• Seller works 30-40 hours per week and only rarely on nights or weekends
• Business is simple to operate and requires no hard work
• Dispatcher in place and willing to stay on
• Clean books and records
• Seller will train
• Business qualifies for SBA financing, which means lower down payment and longer terms
• Business could be operated from home
• Seller will sign a non-compete agreement
• No inventory required in this business

The seller of this business is representing that the Discretionary Earnings (also known as Normalized Cash Flow or Total Owner Benefit) of the business were $150,422 for 2022 and that they can prove it to a buyer and their accountant’s satisfaction.

Down Payment: $37,750

Total Sales: $402,567

Cash Flow: $150,422

EBIT: N/A

EBITDA: N/A

Accounts Receivable: N/A

Accounts Receivable Included: No

FFE: $32,000

FFE Included: Yes

Inventory: N/A

Year Established: 1984

Days & Hours of Operation: Mon-Fri 7:30-4:30

Owner Hours Per Week: 30-40

Non-Owner Payroll: $105,591

Employees: 5 FT, 2 PT

Managers: Dispatcher

Absentee Owner: No

Real Estate: N/A

Monthly Rent: $300

Franchise: No

Relocatable: Yes

Reason For Sale:

Retirement

Training & Support:

The seller will provide 2 weeks of dedicated training at no additional cost.

Historical Summary:

This business was established in the mid 1980's.

Potential Growth:

There are several ways in which this business could be grown.

Financing/Terms:

This business qualifies for SBA financing, since it has good books and records, and is priced appropriately for its Discretionary Earnings.

Down payment for the business would be approximately $37,750, assuming an SBA loan, sales price of the business of $364,000, $10,000 borrowed for working capital, and loan expenses added to the SBA loan of $5,500.

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 9.5%).

Often a conventional loan is not a possibility in financing the purchase of a business, because the cash flow of most successful businesses is worth more than the value of the business’ assets, so there is insufficient collateral to secure a conventional loan. SBA loans are based on the cash flow of the business and for the most part are made irrespective of the amount of collateral available.

SPECIAL SBA PROVISIONS EXPECTED TO CONTINUE UNTIL SEPTEMBER 30, 2023

The SBA historically has charged a guaranty fee of approximately 3.5% of the guaranteed portion of the loan, which is 75% of the total loan. The guaranty fee is added to the loan.

Currently, there is no guaranty fee on loans up to $500,000.

On this business, the savings in guaranty fees is approximately $8,836, as long as the current attractive SBA guaranty fee provisions remain in place.