Business Overview

This plumbing company serves the rapidly growing areas of the DFW metroplex in Collin and Denton counties. Because of longevity of the business and quality work, brand/name recognition is outstanding and company has a high customer satisfaction on Google. Services provided include leak repair, slab leak protection and repair, bathroom and kitchen plumbing services, garbage disposal repair, low water pressure solutions, water heater services and gas leak services. Owner has structured the company to have low overhead so that top line growth can fall to the “bottom line”. Website has recently been updated. Perfect acquisition target for owner operator or expansion of an existing business into this hot market.

Financial

  • Asking Price: $250,000
  • Cash Flow: $73,000
  • Gross Revenue: $386,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $30,000
  • Inventory Included: N/A
  • Established: 1947

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:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

Pursue Other Opportunities

Additional Info

The business was started in 1947, making the business 75 years old.
The transaction won't include inventory valued at $30,000*, which ins't included in the listing price.

The business has 3 employees and resides in a building with approx. square footage of N/A sq ft.
The building is leased by the business for $350 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 entirely different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in profits, or an array of various other factors. This is why it is extremely essential that you not depend entirely on a vendor's word, however instead, utilize the vendor's response along with your total due diligence. This will paint an extra realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover things like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that revenue margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new consumers? Most times, operating businesses have repeat consumers, which form the core of their everyday revenues. Specific factors such as brand-new competition sprouting up around the location, roadway construction, as well as staff turnover can affect repeat consumers and adversely impact future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning consumer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the local average family income effect future revenue potential?