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20 Year Old Computer Sales and Service Business

Springfield, MO (Greene County)

Seller Financing Available
Great Business at a Great Price
Contact Seller

Asking Price: $199,000

Cash Flow: $104,274

Gross Revenue: $172,721

EBITDA: $11,782

FF&E: $18,000

Inventory: $19,000

Rent: $800 /Month

Established: 1998

20 Year Old Computer Sales and Service Business

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Business Description

Highlights of Business
• Well established business with loyal customer base, located in southwest Missouri
• 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
• Seller would consider staying on for a period after closing

History of Business
This computer services business was started in the original owner’s home. The business was purchased by the current owners in 2001. The primary focus of the business had been on personal PC repair, but the new owners saw a need for small business networking services as well. There is also a market for sales and installation of security and surveillance equipment, so they have expanded into this market as well.

The owner works approximately 40 hours per week in the business. The owner has had as many as 3 FT employees and one part time employee in the past. Due to the time it took to deal with employee issues, he currently has one part time employee and himself.

Products and Services Offered
The company offers a variety of services including small business networking, home networking and wireless networking for commercial and residential. They also offer repair service on PC and MacIntosh computers. Another source of revenues is the sale and installation of security and surveillance systems.

Customers and Markets Served
The company’s customers are approximately 70% business and 30% individuals, all located within 25 miles of the office.

This business qualifies for SBA financing, since it has good books and records, and is priced appropriately for its Discretionary Earnings. See the Test for Reasonableness of Purchase Price calculations by clicking on the More Info on Business tab. Seller will consider providing the appropriate seller financing for an SBA loan if required. The seller estimates that $10,000 would be needed for working capital. Most lenders would be happy to loan that much or more in working capital for this business, as the cash flow from the business would fully support it.

Down payment for the business would be approximately $21,570, assuming an SBA loan, sales price of the business of $199,000, $10,000 borrowed for working capital, and loan expenses added to the SBA loan of $6,703.

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);
2) A much longer term than a seller would offer (typically 10 years); and
3) A lower interest rate than a seller would typically offer (currently around 6%).

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.

Customer Concentration
No customers represent more than 10% of total sales.

For more information about this well-established business that has a lot of upside potential, contact Bret McGowne, CBI, at 417 581-8887.

Attached Documents

Detailed Information

Springfield, MO
Included in asking price
Real Estate:
Building SF:
Lease Expiration:
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities The business is operated in an office that is approximately 1,000 sf. The lease includes access to a conference room, a break room, trash removal and adequate parking. An offer to purchase a business operating from leased space should always contain a contingency clause stating that the purchase will be contingent upon the buyer being able to obtain a lease satisfactory to the buyer in all respects.
The business has a normal amount of competition. Four local vendors provide competition to the services offered by this business. Competitors in the sale of hardware include big retailers like Best Buy, Staples, WalMart, and companies which sell online.
Growth & Expansion:
The seller thinks an increase in advertising would have a significant impact on sales. He suggests that billboards, radio and Search Engine Optimization would all pay dividends. The location is not currently retail-friendly, so moving to a higher traffic area could drive sales of hardware, the seller believes. His competitors in the big-box stores do not offer quality service, in the opinion of the seller, so promoting service to area consumers and businesses could substantially increase revenue. The business’ growth has been limited by a lack of staff. While the current owner recognizes the need to deal with employees, he realizes that hiring and keeping staff would allow a buyer to increase sales.
Seller will consider providing seller financing if required by the SBA lender
Support & Training:
Training The seller will provide 2 weeks of dedicated training, at no additional charge. The seller is also willing to stay on for up to one year after training at an agreed upon salary.
Reason for Selling:
The owner wishes to retire, but would consider staying on for some time period.
Contact Seller

Contact the Seller

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Bret McGowne, CBI

Business Listed By:
Bret McGowne

VR BUSINESS SALES - Spfd/Branson Office

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Sponsoring Broker:
Jerry Myers, MBA, CBI

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