Business Overview

Family Owned Residential Plumbing and Heating service business has been in operation for 50 years and is ready for a new owner. With a database of over 1,800 repeat customers, they currently turn away business as the owner is not physically able to perform all types of service. 65% of business comes from property management companies. The new owner will acquire a business with all the equipment, truck and tools to service current customers, and have the ability to take on as much work as they can handle. Huge growth opportunity.

Financial

  • Asking Price: $140,000
  • Cash Flow: $67,337
  • Gross Revenue: $163,230
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1971

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

1/2 Ton truck with new engine, flywheel and all the racks and storage. Miscellaneous specialized tools and parts inventory. Purchased as an employee from original owner 50 years ago. Owner used to run this business solo, but as he became older, brought in his son to perform the plumbing work and he and his wife answer the phones and do the books part time from home.

Is Support & Training Included:

2 weeks

Purpose For Selling:

Retirement

Pros and Cons:

There is always a shortage of reliable and skilled plumbers. There are numerous plumbing contractors in the Portland metro area, but few that match the reputation and loyalty of this company. Current customer base includes property management companies and residential repeat customers.

Opportunities and Growth:

Enormous growth potential. Owner is elderly and turns down complex and demanding jobs due to physical constraints. Opportunity to expand service into remodeling, and more strenuous and profitable jobs. Owner does no advertising. New owner could grow organically through current customers or advertise to win new ones.

Additional Info

The venture was started in 1971, making the business 51 years old.
The sale will include inventory valued at $10,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. Nonetheless, the real factor and the one they tell you may be 2 completely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is really important that you not count entirely on a seller's word, but rather, use the seller's response combined with your general due diligence. This will paint a more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover points like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new consumers? Most times, businesses have repeat clients, which create the core of their everyday earnings. Specific aspects such as new competition growing up around the location, roadway building, as well as personnel turn over can influence repeat consumers as well as negatively influence future earnings. One vital thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to construct a returning client base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the regional median home income effect future income potential?