Business Overview

Well established and profitable Plumbing and Heating Contractor in Alaska with an average 3-year SDE of $650,000 from over $4,200,000 in annual revenues. This business includes real estate with a recently remodeled shop and office plus an ample yard. This business has an asset-rich FF&E with a large inventory as well. This opportunity allows for semi-passive ownership due to its strong and well established management team.

Financial

  • Asking Price: $5,650,000
  • Cash Flow: $675,515
  • Gross Revenue: $4,428,177
  • EBITDA: N/A
  • FF&E: $700,000
  • Inventory: $750,000
  • Inventory Included: Yes
  • Established: 1988

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:23
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The venture was started in 1988, making the business 34 years old.
The deal shall include inventory valued at $750,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell companies. Nonetheless, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they might claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of other reasons. This is why it is very vital that you not depend totally on a seller's word, but instead, use the seller's answer in conjunction with your general due diligence. This will paint a more realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise 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 vendors that need to be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract brand-new customers? Most times, operating businesses have repeat customers, which create the core of their daily earnings. Certain elements such as brand-new competitors growing up around the area, roadway building and construction, and employee turn over can influence repeat clients and adversely affect future earnings. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business regularly, the greater the opportunity to construct a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the local average family earnings impact future earnings potential?