Listing ID: 74106
This household name company was established in 1985 and has remained a family owned business located in North Dakota. The company’s reputation is second to none and has an outstanding & growing customer base. The company operates a full service HVAC and plumbing business that repairs, sells and installs a full line of products. The majority of their current business portfolio is made up of 40% commercial and 60% residential customers.
They have a fleet of 5 service vehicles and the business is operated in a nice size commercial building. The shop is in a desirable location and can be leased for a reasonable price. Business has been approved for a 75% SBA loan. Owner is willing to finance up to 10 to 15 percent financing for a well-qualified buyer.
- Asking Price: $700,000
- Cash Flow: $265,619
- Gross Revenue: $976,699
- EBITDA: N/A
- FF&E: N/A
- Inventory: $50,000
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:5,400
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Same owner for 33 years
The Company has experienced consistent growth and an expanding customer base for the last 3 years. It has the potential to grow even more with additional employees to handle all the future business, and by offering additional services that their competitors don’t offer.
The venture was established in 1985, making the business 37 years old.
The transaction shall not include inventory valued at $50,000*, which ins't included in the suggested price.
The company has 4 employees and is situated in a building with estimated square footage of 5,400 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the true factor and the one they tell you might be 2 entirely different things. As an example, they may state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is very vital that you not depend entirely on a seller's word, yet rather, use the seller's response combined with your general due diligence. This will repaint a more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover points like stock, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in brand-new clients? Many times, companies have repeat consumers, which form the core of their day-to-day earnings. Specific variables such as new competition sprouting up around the location, roadway building, as well as staff turnover can impact repeat consumers and also adversely affect future profits. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the chance to construct a returning customer base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the local median family earnings influence future earnings prospects?