Listing ID: 73355
For sale for $1.0M, an established 15 year, very profitable and well-run commercial construction company. Located in the greater Cincinnati area. 2021 revenue trend is approx $3.9M with $523K in seller cash flow. 2020 combined revenue was more than $5.8M despite the COVID shutdown of 2 months. Pre-COVID revenues were $8M and up. Seller is ready to retire to pursue other interests but is willing to stay on to train the right buyer. Seller will also consider some seller financing for the right buyer. 4100 SF of leased office space and warehouse space centrally located minutes from a major highway. Services include subcontracting, heavy/civil and commercial building. Piling/H-piling, earth work, furnishing and related services, excavation & backfill, finish carpentry, doors and hardware, ceilings, concrete repair, structural steel and piping round out the specific types of work this company has been doing very well for nearly 2 decades. Customers include Educational, Institutional, Universities, Health & Life Science, Hospitals, & Government facilities. For additional information please contact listing agent Brandon Owens at 513-392-6750 or firstname.lastname@example.org.
- Asking Price: $1,000,000
- Cash Flow: $523,000
- Gross Revenue: $3,870,000
- EBITDA: N/A
- FF&E: $46,000
- Inventory: $15,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,100
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
This is a leased location of 4,100 square feet with a Total Rent of $1,600. Lease ends 12/2021 with a one year lease option. Seller is active in the business with 9 FT employees. Hours of operation are 8 AM to 5 PM, Monday - Friday. $15,000 in Inventory and $46,000 in FF&E included in Asking Price. Assets include all hand tools, saws, ladders, scaffolding platforms, office furniture, equipment and office PC's! Contractor Registration Certificate Required.
Owners ready to retire
The business was established in 2005, making the business 17 years old.
The transaction does include inventory valued at $15,000, which is included in the asking price.
The company has 9 employees and resides in a building with approx. square footage of 4,100 sq ft.
The real estate is leased by the business for $1,600 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nevertheless, the genuine reason and the one they say to you may be 2 completely different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a range of other reasons. This is why it is very vital that you not count absolutely on a seller's word, but rather, use the vendor's solution combined with your general due diligence. This will paint a more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover items such as stock, payroll, accounts payable, etc. Remember that sometimes this can suggest that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be met or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their daily earnings. Specific elements such as new competitors sprouting up around the location, road building and construction, and also personnel turn over can influence repeat customers and adversely impact future profits. One essential thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the regional typical household earnings impact future revenue prospects?