Incredible B2B Cloud Based SW Business Opportunity
Asking Price: $1,300,000 Gross Revenue: $1,200,000Cash Flow: $230,000EBITDA: $270,000Inventory: $25,000 not included in asking priceFF&E: $25,000 included in asking priceShare this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
Of all commercial buildings, restaurants use the highest amount of energy per square foot.
This presents a huge opportunity to leverage smart building efficiency measures to save energy.
Born from restaurant managers, this company creates energy and facility management solutions for the food and beverage industry.
Reduce energy consumption.
Provide standardized controls across multiple facilities.
Improve enterprise level operational performance.
Restaurants have profit margins of 3-5%; a 20% reduction in energy usage/maintenance can increase profit by 1 percentage point (25% increase).
Owners can reduce energy costs by 10-30% with our solution.
There are high switching costs that make the company’s business defensible and customer turnover that is extremely low.
It’s a huge market that is looking for solutions.
The cloud based business has high gross margins (nearly 70%).
The business has stable recurring revenue and is growing new business.
It has relatively low CapEx and Working Capital requirements.
Revenue: $1.2M (2019 estimate)
Large installed base.
Extremely high customer satisfaction.
Contract with largest Fast Food Chain in the world and the largest US Casual Dining Chain.
Hardware $10,000 (66% GM) - installed by owner
Service $500 (95% GM) - done remotely
Recurring SW revenue $650 per year
We remote commission, no flying out. Installations are performed on-site by local electricians and mechanical contractors that already service the customer.
About the Business
Number of Employees:
Building Sq. Ft.:
$3,118.00 Per Month
A short term lease in a building
The competition comes from more expensive systems designed for large enterprises (and not well suited for fast food restaurants) and from cheaper commercial systems (again not designed to operate well in restaurants)
Growth & Expansion:
The current owner has created a great product and business but is not an experienced sales person - they currently grow primarily when one of their existing franchise owners or chains expand. With an aggressive sales and marketing the business could grow 2-3x by adding new clients as well.
Smart Building Energy Efficiency Made For Restaurants
The information on this listing has been provided by either
the seller or a business broker representing the seller. BizQuest has no interest
or stake in the sale of this business and has not verified any of the information
and assumes no responsibility for its accuracy, veracity, or completeness. See our
full Terms & Conditions.