Listing ID: 72793
This highly profitable business has over 40 years of experience designing and installing outdoor and indoor telecommunications cabling. The business is a go to company in Oregon and Southern Washington for cabling services and can handle jobs of any size. Major US telecom companies contract with this business consistently to install cable for their increasing customer demands and infrastructure projects. The business holds premier subcontractor status with Century Link/Lumen and supports their commercial and government customers in the region. This is a full-service telecommunications company, its services include entry/core drilling, outdoor & indoor cable, fiber optics and conduit installations selling and installing security cameras, and VOIP telephone systems. This is one of the only telecommunication businesses in Oregon and Southern Washington that does both the installation of the telephone systems and the infrastructure needed for it. Their versatility has helped them become an industry name in the region making them a go to subcontractor for Major US companies such as Ziply, Comcast and Century Link/Lumen.
- Asking Price: $545,000
- Cash Flow: $158,749
- Gross Revenue: $769,807
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Started 40 years ago by its owner, the business started out by offering sales, installation, programming, and maintenance of commercial telephone systems for businesses large and small. They also provided the service to complete infrastructure cabling. Over time with technological advances, the demand for infrastructure cabling grew more and more and is now the primary revenue source for the business.
While there are competitors, they often refer jobs to this business. They are an industry leader and the only full-service provider in the area creating a competitive advantage as they receive referrals from competitors who are unable to meet customer needs and do not offer a comprehensive service package.
The need for infrastructure cabling as well as buried cable is expected to continue to grow as businesses and communities continue to expand. As the demand for high-speed internet for residential and commercial customers continue to grow, so does the need for services from this business. There may also be additional opportunity for on-going maintenance and service. Revenue is expected to increase in 2021 due to the growing service relationships with its Major customers.
The business was started in 1981, making the business 41 years old.
The sale shall include inventory valued at $50,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the real factor and the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other factors. This is why it is extremely crucial that you not depend completely on a seller's word, however instead, use the seller's solution together with your general due diligence. This will paint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that earnings margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new customers? Most times, companies have repeat clients, which form the core of their day-to-day earnings. Certain aspects such as brand-new competitors growing up around the location, roadway building and construction, and also staff turnover can influence repeat clients and negatively affect future earnings. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the higher the chance to develop a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the local median household income impact future revenue potential?