Business Overview

This business serves commercial builders with industrial, plumbing, and HVAC supplies including adaptors, fittings, connectors, assemblies, valves, and more. Business has the exclusive right to Arizona and Nevada territories. Established for over 15 years, this business is well known in the industry. Business has a large warehouse to store both owned and consigned inventory. Asking price does NOT included inventory.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $400,000
  • Gross Revenue: $1,500,000
  • EBITDA: $400,000
  • FF&E: $200,000
  • Inventory: $50,000
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 week training period

Purpose For Selling:

Other business interests

Additional Info

The venture was started in 2006, making the business 16 years old.
The transaction won't include inventory valued at $50,000*, which ins't included in the suggested price.

The business has 2 FT/ 1 PT employees and is situated in a building with disclosed square footage of 8,000 sq ft.
The property is leased by the company for $7,800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell companies. However, the genuine reason and the one they say to you might be 2 absolutely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or an array of other reasons. This is why it is really essential that you not depend entirely on a vendor's word, yet instead, use the vendor's solution along with your overall due diligence. This will paint a more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover items such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be met or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area attract new customers? Often times, companies have repeat consumers, which create the core of their daily revenues. Certain elements such as brand-new competition sprouting up around the location, roadway building, and also staff turnover can impact repeat customers and adversely affect future incomes. One crucial thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the possibility to build a returning customer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood median family income influence future income potential?