Listing ID: 67566
Excellent opportunity to own an established business that provides HVAC, electrical, plumbing, appliance, gas log, attic fan, EAC, humidifier, and other related services. The company was established in 1993 and serves residential and commercial clients across Northern Virginia. The owner takes pride getting to know his customers and providing quality service across a variety of areas at reasonable prices.
This business would make an ideal acquisition target for an established business in this industry looking to expand their footprint, but would also be an attractive turnkey opportunity for an owner/operator. There is a loyal and stable customer base with many long standing accounts. The company has a great reputation in the market with a significant portion of their business coming from word of mouth and referrals.
The owner is looking to retire after running the business for 25 years and wants to ensure the next owner is set up for success. There is a record of stable revenue and cash flow growth from 2017-2019. The business was impacted by COVID in 2020 with about a 26% decline over 2019, but bounced back in the second half of 2020 and closed 2021 strong with revenues about 20% higher than 2019 and 63% higher then 2020 beating out its average cash flow performance which was about $80,000. We don’t expect this opportunity to last long, so contact us today to learn more!
- Asking Price: $170,000
- Cash Flow: $86,192
- Gross Revenue: $351,048
- EBITDA: N/A
- FF&E: $27,500
- Inventory: $2,500
- Inventory Included: Yes
- Established: 1993
- 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
The business is based and run from a home office. (Home Based)
Seller will provide necessary training and support.
Owner is retiring.
There is standard competition for the industry and market, but this business stands out due to the wide range of services it provides to customers. The company is a one stop shop when it comes to HVAC, electrical, plumbing, appliance service/repair and other related services.
There are several ways to grow and expand the business as the business currently is operated by the owner who is the sole employee. A new owner might consider adding part time or full time staff to augment current operations and investing in a website or implementing a modest marketing/advertising plan to help increase business.
This Business Is Home Based
The business was established in 1993, making the business 29 years old.
The deal does include inventory valued at $2,500, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nevertheless, the real reason vs the one they say to you may be 2 totally different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is really vital that you not depend completely on a seller's word, however instead, utilize the vendor's solution together with your total due diligence. This will paint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover items like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that profit margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new customers? Often times, businesses have repeat clients, which develop the core of their everyday profits. Certain variables such as new competition growing up around the location, roadway building, and employee turnover can impact repeat consumers and also negatively affect future incomes. One important point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the better the chance to develop a returning client base. A last idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional mean family earnings effect future income potential?