Listing ID: 69835
Business Overview
Sunbelt Busines Brokers of Shreveport presents this Backup Generator Sales and Service Company located in Northwest Louisiana available for acquisition. This well-established business has three revenue streams which include new generator sales, servicing, and annual maintenance agreements which provide a steady stream of revenue year-round.
New generator sales have accounted for 80% of revenue year-to-date, maintenance contracts 12% and service 8%. The business has an 8-12 month backlog of customers waiting for generators with $1.6m of jobs booked.
The owner is selling to retire but willing to stay on and consult/assist with the new management team for a period following the sale. Contact Chris today for more information on this well-established backup generator sales and service business for sale. Chris Sater is licensed through Sunbelt Business Brokers of Shreveport, 318-525-7349. Sponsoring broker is Brandon Bourgeois 225-201-0202. Please call Chris directly for more information at 318-525-7349 or email chris@thesunbeltbrokers.com
Financial
- Asking Price: $998,000
- Cash Flow: $302,000
- Gross Revenue: $1,967,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2000
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Available
Retirement
Additional Info
The venture was founded in 2000, making the business 22 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 absolutely different things. As an example, they may state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a range of various other reasons. This is why it is extremely essential that you not count absolutely on a seller's word, however rather, make use of the vendor's answer along with your general due diligence. This will paint a much more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too thin. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new customers? Most times, businesses have repeat clients, which develop the core of their day-to-day profits. Particular variables such as new competitors sprouting up around the area, roadway building and construction, as well as personnel turn over can affect repeat clients as well as adversely influence future profits. One important point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the possibility to build a returning customer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the local mean home income influence future earnings prospects?
