Business Overview

This business has a niche in the HVAC market that make your HVAC business unique, extremely profitable and a leader in Geothermal services.

The business has been around for thirty years.

The Pacific Northwest’s expert in Geothermal engineering

Financial

  • Asking Price: $300,000
  • Cash Flow: $28,000
  • Gross Revenue: $160,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $50,000
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

26 weeks

Purpose For Selling:

retirement

Additional Info

The transaction won't include inventory valued at $50,000*, which ins't included in the requested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, current reduction in earnings, or a range of other factors. This is why it is extremely crucial that you not count completely on a vendor's word, however instead, make use of the vendor's solution combined with your total due diligence. This will paint a much more practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract brand-new customers? Often times, businesses have repeat clients, which form the core of their daily earnings. Specific aspects such as new competition growing up around the area, road construction, and employee turnover can affect repeat customers and also adversely affect future incomes. One important thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the higher the chance to construct a returning customer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the local average house income impact future income potential?