Business Overview

An electrical contractor company that serves residential and commercial customers in Greater San Antonio, TX. One of the most significant driving forces behind the demand of the electrical contractor market is the real estate, remodel housing market and the industrial development of San Antonio City’s fast growth. Their expert certified team provides a comprehensive service that includes assessing, designing, implementing new installations, remodeling projects, and repairs.

Financial

  • Asking Price: $990,000
  • Cash Flow: $295,578
  • Gross Revenue: $1,519,346
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: N/A

Additional Info

The transaction will include inventory valued at $100,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell companies. Nonetheless, the true factor vs the one they say to you may be 2 totally different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in incomes, or a range of other factors. This is why it is really crucial that you not depend entirely on a vendor's word, however instead, make use of the vendor's solution combined with your total due diligence. This will paint a more reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover points like supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to 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 brand-new clients? Most times, businesses have repeat clients, which create the core of their day-to-day profits. Certain factors such as new competition growing up around the location, roadway construction, and personnel turnover can affect repeat customers and also negatively affect future profits. One vital point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the higher the opportunity to develop a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional average home income effect future revenue potential?