Business Overview

Great opportunity to acquire a well-established, fully-staffed, turn-key Plumbing business in Northwestern Arizona. The seller founded this business over 15 years ago and originally performed primarily service and repair work. Over the past few years this city has exploded with retirees coming from out of state and new homes are being built everywhere. The seller stopped doing repair and service work and focuses exclusively on plumbing installation of new homes. There is so much demand in this area that most of these tract homes are pre-sold before construction begins. This enterprise performs all three phases of new construction plumbing: Underground (Ground Rough), Topout (Rough In), and Finish. The piping is pre-staged at the shop and then delivered to the worksite ready to install. The business works with nine local home builders and will plumb approximately 200 new houses this year. This is a profitable business as local wages are relatively low and the installation process is highly repeatable from house to house due to a limited number of floor plans and configurations. The seller is active in digging for the underground plumbing using a Bobcat, also training and inspecting all of the ongoing work and managing client relationships, permitting, etc. The business has Four Technicians in the field that handle the physical installations. The business is on pace to exceed $2 Million in revenue this year and continue a strong growth trend over the past few years. A qualified buyer must have an AZ CR-37 ROC license or a solid plan to fulfill this requirement. Sale includes 4 vans, a bobcat, forklift, equipment, parts, etc. The seller owns the land and building where the workshop is located and will include that with the business sale. After 40+ years in the plumbing business, the seller is ready to retire. SERIOUS BUYERS ONLY PLEASE. All inquiring parties will be required to answer pre-qualifying questions and complete a confidentiality agreement before receiving more information.

Financial

  • Asking Price: $1,285,000
  • Cash Flow: $1,000,000
  • Gross Revenue: $2,260,000
  • EBITDA: $1,000,000
  • FF&E: $150,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 2006

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,823
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

Retiring

Additional Info

The company was started in 2006, making the business 16 years old.
The deal will include inventory valued at $100,000, which is included in the suggested price.

The business has 6 employees and is situated in a building with estimated square footage of 1,823 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. However, the genuine reason and the one they say to you might be 2 absolutely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of various other reasons. This is why it is very important that you not depend completely on a vendor's word, however rather, utilize the seller's response in conjunction with your general due diligence. This will repaint an extra reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover items like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new consumers? Often times, operating businesses have repeat clients, which create the core of their everyday revenues. Particular factors such as brand-new competitors sprouting up around the location, road building, and staff turn over can influence repeat clients and negatively impact future revenues. One important point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the regional average family earnings impact future revenue prospects?