Custom Kitchen & Cabinet Manufacturer Assignment Essay

Submitted By qbrakkz
Words: 477
Pages: 2

The business I am looking to purchase is Custom Kitchen & Cabinet Manufacturer. They have an asking price of $325,000 and have a Gross Revenue of $708,000. They have equipment worth $173,000, and the inventory value plus the furniture is included in the asking price. The business was established in 2005 and it has been growing ever since. The four factors I will be looking at when deciding to purchase this company are ease of start-up, existing customer base, financial opportunities and company strengths. The first reason I would buy this business is because it is an easy start up. This means that since the business has already been established and I do not need to worry about a lot of start-up costs and problems as if I were starting a business from scratch. Some examples of start-up costs problems include: finding suppliers, hiring staff and management, buying equipment and inventory, etc. In the “Custom Kitchen & Cabinet Manufacturer” business description, it states that the company already has the equipment I need and what the value of the equipment is.
Another reason I would purchase Custom Kitchen & Cabinet Manufacturer is because as stated in the business description, they already have a positive reputation in the market which means they have a strong and loyal customer base. Since I do not plan on making any significant changes to the company’s policies or structure, there should not be any loss in customers due to the change in ownership.
The third reason I would buy Custom Kitchen & Cabinet Manufacturer is because they have an impressive track record. With the business doing so well it will not be too difficult for me to expand the business. The business description does say that there is plenty of room to expand production within the existing facility and that the new owner should be able to expand the company’s share of market. The business description also states that since the business…