Listing ID: 77266
This profitable established company, based in Riverside, serves customers in the Inland Empire and High Desert throughout an approximate fifty mile radius within Riverside, San Bernardino and east Orange Counties. The Company installs energy saving swimming pool water heating systems including their controls. They are a dealer for one of the largest solar pool heating manufacturers in the United States. Heating the water of a swimming pool extends the months that the pool can be used in comfort without high heating bills. The Company does installation, service and repair, and warranty replacement for pool owners in middle to high income homeowners, homeowner associations (HOA’s) and mobile home parks (MHP’s). The average residential contract is $5,000, and the average commercial contract is $35,000. Their niche market has minimal competition.
Business sales have been constrained by the owners preferring to run a simple, small business that keeps them busy, provides excellent service and produces an adequate income. There are thousands of pools that would benefit from the Company’s service. Upside potential includes expanding the service area into adjoining counties, providing pool /patio/yard service, yard design. The company is a good candidate for a solar PV electric company buyer. 2021 revenues and SDE are up strong.
An established referral base of pool builders and several file cabinets containing the history, data and contact information of over 2,500 satisfied current and past customers, and a direct mailer list compiled by year and city, provide a good sales data base for the buyer. The Company has clean accounting and tax records.
- Asking Price: $275,000
- Cash Flow: $131,317
- Gross Revenue: $569,798
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Currently Home Based
Seller will negotiate a transition period
The business was founded in 2008, making the business 14 years old.
The sale won't include inventory valued at $5,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. However, the true factor vs the one they tell you may be 2 completely different things. As an example, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a variety of various other factors. This is why it is really crucial that you not depend totally on a seller's word, however rather, use the vendor's response in conjunction with your total due diligence. This will repaint a much more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new consumers? Often times, operating businesses have repeat clients, which develop the core of their daily revenues. Specific aspects such as new competitors growing up around the location, roadway construction, and staff turnover can influence repeat customers and also negatively impact future earnings. One important point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to develop a returning customer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the regional typical house earnings influence future earnings potential?