Listing ID: 76687
Since 1995, this company has specialized in residential and light commercial hydronic hot water heating system. The company provides installation, upgrades, replacements and service of both heating systems and domestic hot water usage. The company has a sterling reputation within their service area for responsiveness, technical expertise, exceptional work, competitive pricing and customer focused service.
This company has not been impacted by COVID! In fact, business is booming.
The founder/owner’s goal is to mentor a new buyer, ensure they are successful and can take this company to the next level. The company currently generates more business than the current owner can handle.
- Asking Price: $165,000
- Cash Flow: $105,000
- Gross Revenue: $220,000
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $19,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:800
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
800 sf leased facility.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
Very few other businesses in the area that specialize in this type of work or have the reputation this company enjoys. Relatively easy to beat “generalists” on bids.
A new owner will have many opportunities for growth including adding technicians, expanding geographically, leveraging plumbing opportunities and accepting all of the work that currently comes in.
The company was started in 1995, making the business 27 years old.
The transaction shall include inventory valued at $19,000, which is included in the listing price.
The company has 1 FT and 1 PT employees and is located in a building with estimated square footage of 800 sq ft.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the true reason vs the one they tell you may be 2 totally different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other factors. This is why it is extremely important that you not rely entirely on a seller's word, yet rather, utilize the seller's response in conjunction with your general due diligence. This will repaint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in new clients? Many times, companies have repeat consumers, which develop the core of their everyday revenues. Specific aspects such as brand-new competition growing up around the area, roadway building, as well as personnel turn over can affect repeat clients and negatively influence future profits. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the higher the possibility to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local median family earnings effect future earnings potential?