Listing ID: 69882
Business Overview
Northwest Arkansas Service Area| Commercial & Residential | Multiple Services
This recognizable commercial and residential plumbing company has made solving the customers’ needs their number one priority for over a decade. This commercial and residential service company is built to grow in order to match the tremendous growth being experienced in beautiful Northwest Arkansas. This area is consistently ranked in the top 10 places to live in the U.S. The business has a seasoned staff in place and is ready to address everything from new construction to the smallest leak or clog. This company is ready to resolve whatever challenge may confront them.
Services include: Clogged Drains, Water Heaters, Sump Pumps, Drain Cleaning, New Installs, Commercial Services and many more! This could be the perfect opportunity for an existing plumbing business to acquire an experienced team of plumbers licensed in multiple states.
Contact CBI Team today for more details about this Plumbing Business for sale.
Financial
- Asking Price: $890,000
- Cash Flow: $360,426
- Gross Revenue: $2,453,141
- EBITDA: N/A
- FF&E: $412,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: N/A
Additional Info
The sale does include inventory valued at $50,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or a variety of various other factors. This is why it is very crucial that you not count completely on a seller's word, however instead, make use of the vendor's solution along with your general due diligence. This will paint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that revenue margins are too thin. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in new customers? Most times, businesses have repeat customers, which develop the core of their daily profits. Specific aspects such as new competition sprouting up around the area, roadway building and construction, and employee turn over can influence repeat clients and also negatively influence future profits. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the better the possibility to build a returning consumer base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the local average household earnings effect future income prospects?
