Listing ID: 73253
Business initiated in 2015 and grown each year via new customers (Residential/Commercial, Municipal/Schools), HVAC sales and an increasing inventory of annual maintenance contracts
Competitive Overview Reputation of firm for service and loyalty to customers has propagated the HVAC company above and beyond their competition.
Potential Growth Historical sales and COGS support continuance of rapid growth and expansion opportunities!
Office and 3 Storage Units
- Asking Price: $664,000
- Cash Flow: $238,241
- Gross Revenue: $1,476,522
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business has 8 employees and resides in a building with estimated square footage of 2,000 sq ft.
The property is leased by the business for $1,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nevertheless, the genuine reason and the one they say to you might be 2 totally different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a variety of various other factors. This is why it is very essential that you not count totally on a vendor's word, yet rather, utilize the seller's solution along with your general due diligence. This will repaint a more sensible 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 certainly have reason to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new customers? Often times, businesses have repeat consumers, which develop the core of their daily profits. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and also staff turn over can influence repeat customers and adversely impact future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A last idea is the general area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood typical family earnings effect future revenue potential?