Business Overview

This B2B service company installs, engineers, and services fire, security, and communication systems. It is well known in the industry for providing best in class design, engineering, installation, and monitoring services throughout the Front Range of Colorado. Thriving since its inception over 30 years ago, the company has prized relationships with municipalities that rely on its expertise in new installations and ongoing service. The company has metered its growth in order to fit the lifestyle of its current owners. However, as a trusted and respected supplier to many large organizations, the company is positioned for growth. This company
represents a valuable add-on or stand-alone investment for companies already operating in a similar space or a private investor seeking a stable platform in a growing market.

Financial

  • Asking Price: $998,500
  • Cash Flow: $338,560
  • Gross Revenue: $1,812,274
  • EBITDA: $338,560
  • FF&E: $50,000
  • Inventory: $9,000
  • Inventory Included: Yes
  • Established: 1978

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:7,328
  • Lot Size:N/A
  • Total Number of Employees:11
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The venture was started in 1978, making the business 44 years old.
The transaction does include inventory valued at $9,000, which is included in the suggested price.

The business has 11 employees and is located in a building with disclosed square footage of 7,328 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell operating businesses. Nevertheless, the real factor and the one they say to you might be 2 absolutely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competitors, current reduction in profits, or a variety of various other reasons. This is why it is extremely essential that you not rely totally on a seller's word, yet rather, utilize the seller's answer along with your total due diligence. This will paint a more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that revenue margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract brand-new clients? Most times, operating businesses have repeat customers, which create the core of their daily earnings. Specific factors such as brand-new competitors sprouting up around the area, road construction, and also staff turn over can affect repeat clients as well as negatively influence future revenues. One essential point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning customer base. A final thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the regional median home income influence future revenue prospects?