Business Overview

Exceptional central Texas, residential and commercial constuction plumbing company. Fully bonded, licensed and insured. This growing, highly profitable business, has a successful track record, over many years, of reliable service to its clients. Currently, the business has signed future contracts. This is a perfect acquisition for a company seeking to add plumbing to its current operations and enter the booming Central Texas market, an entrepreneurial Plumber with management and marketing experience seeking to develop the service revenue stream. The owner has committed to provide adequate support and training to the new owner to ensure a smooth transition.

Financial

  • Asking Price: $2,400,000
  • Cash Flow: $747,007
  • Gross Revenue: $6,188,103
  • EBITDA: $747,007
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1999

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:45
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The company was founded in 1999, making the business 23 years old.

The business has 45 employees and resides in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell companies. Nevertheless, the real reason and the one they say to you might be 2 entirely different things. For instance, they might say "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or an array of various other factors. This is why it is really essential that you not depend completely on a seller's word, yet instead, utilize the vendor's answer together with your overall due diligence. This will repaint a more practical picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover points like inventory, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new clients? Most times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Particular aspects such as new competition growing up around the area, roadway building, as well as employee turn over can influence repeat clients as well as negatively impact future profits. One crucial point to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the regional median home income effect future earnings potential?