Business Overview

It’s not often that a thriving plumbing business comes on the market. This one wouldn’t normally be available, but the owner is moving out of state.

It has a commanding presence in its Portland market area and would be ideal for another plumbing company to pick up as an expansion play.

Or perhaps a working plumber would like to work for himself—become independent.
Based on a three-year weighted average, the performance figures show that a working plumber could pocket over $130K a year while the company pays off the SBA loan to buy it.

Using SBA financing as leverage, a non-working buyer (e.g., a competitor’s shop looking to expand) would be looking at a cash-on-cash return of over 100% a year (based on historical performance.) Try getting that kind of investment return at your local bank!

This is not a franchise, where you pay out a chunk of annual profit to the parent company franchisor. No, it is fully independent, offering services that are always in demand. In fact, therein lies the growth potential—after the buyer becomes familiar with the company, it’s not a great leap to hire one good plumber and thereby be able to take on more projects.

So—if you’re thinking about expanding your existing shop by taking on a market that knows and trusts this company, or if you’re looking for a low-risk way to become your own boss, you might want to check this one out.

Financial

  • Asking Price: $251,350
  • Cash Flow: $99,106
  • Gross Revenue: $312,566
  • EBITDA: $99,106
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2008

Detailed Information

  • Property Owned or Leased:N/A
  • 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
About The Facility:

The shop will need to be relocated to a new leased building.

Is Support & Training Included:

The owner will provide one month of transition support, plus telephone and email support for 6 months after that.

Purpose For Selling:

Moving out of state

Pros and Cons:

There are other plumbing companies in the area. This one has established a sterling reputation and has something of a following in it's market.

Opportunities and Growth:

Because of its great reputation, this company has more demand than it has been able to handle. The best way to take advantage of the demand is to hire one plumber and lease a truck for him.

Additional Info

The venture was started in 2008, making the business 14 years old.

The real estate is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. However, the genuine reason and the one they tell you may be 2 absolutely different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, current reduction in profits, or a range of other reasons. This is why it is extremely crucial that you not rely totally on a seller's word, yet rather, utilize the seller's solution along with your overall due diligence. This will paint a much more realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Many times, businesses have repeat clients, which create the core of their day-to-day profits. Particular aspects such as brand-new competitors sprouting up around the location, roadway building and construction, and employee turn over can influence repeat customers as well as adversely influence future profits. One vital thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to construct a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the regional average household earnings impact future earnings prospects?