Business Overview

**In Escrow

This company is an industry leader in noise control and acoustic products, including passive absorption, barriers, enclosures, louvers, silencers, doors, windows and other sound control related products. They provide engineering services, product application design, and sales and installation of these products to general contractors, studios, the entertainment industry, police and fire, community facilities, churches, aerospace, military, manufacturers, and the occasional affluent homeowner.

This company was established in 65+ years ago and has a robust sales pipeline. They receive daily referrals from major acoustic product manufacturers for their Southern California and Nevada clients. Their customers are primarily mid-to-large scale general contractors (80%), with some end-users and specialty contractors (20%). They have an excellent repeat customer base (40-45% of sales). 80-90% of the jobs include sales and installation, while 10-20% are product sales only.

The business has thrived for nearly seven decades. The current owner started as an employee and purchased it when the prior owner retired. He has done a stellar job, truly taking the company to the next level. He implemented technology, streamlined operations, improved efficiency, expanded product lines, and dramatically increased sales. The proof is in the numbers: during his 11 year run, gross revenue has increased 4x, with excellent profitability to match.

This is a tremendous niche business that has it all: millions of dollars in future signed contracts, a great history, tremendous value add, limited competition, a well-recognized brand, excellent reputation, and decades of goodwill. If you are in construction, this is a unique expansion opportunity. If you’re looking to enter the industry, this is an excellent, thriving, high-net profit company. Either way, this opportunity will not last. Reach out to the Agent today!

Financial

  • Asking Price: $2,195,000
  • Cash Flow: $562,271
  • Gross Revenue: $4,768,014
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 1956

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,225
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

30 days included in the sale. The seller can stay with the company for 1-2 years post sale.

Purpose For Selling:

Retirement

Additional Info

The venture was started in 1956, making the business 66 years old.
The transaction won't include inventory valued at $200,000*, which ins't included in the asking price.

The company has 12 employees and resides in a building with estimated square footage of 1,225 sq ft.
The building is leased by the company for $7,243 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 entirely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, current decrease in profits, or a variety of various other reasons. This is why it is really important that you not rely entirely on a vendor's word, however rather, use the seller's answer together with your total due diligence. This will repaint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover items such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that earnings margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back 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 vendors that should be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new customers? Most times, companies have repeat clients, which create the core of their daily earnings. Certain factors such as new competitors growing up around the location, road building and construction, and also personnel turnover can affect repeat customers as well as adversely impact future revenues. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the chance to develop a returning consumer base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? How might the regional average house income impact future earnings prospects?