Listing ID: 77352
This 7-year old electrical contracting company provides 40% margin of earnings (SDE) to the owner. There is strong year over year sales growth and high demand for their services. Quality service and their strong reputation continues to drive increases in their business.
A buyer for this business should have appropriate state contractor licenses (C-10 or other).
The relocating owner will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business. Terms to be mutually agreed to.
- Asking Price: $395,000
- Cash Flow: $290,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $35,000
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Seller will train new owner.
Seller is relocating.
The business was started in 2014, making the business 8 years old.
The sale won't include inventory valued at $35,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell businesses. However, the true factor and the one they say to you might be 2 totally different things. For instance, they might state "I have too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or a range of other reasons. This is why it is extremely crucial that you not count entirely on a vendor's word, however instead, use the seller's response in conjunction with your general due diligence. This will repaint a more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that revenue margins are too tight. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be met or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new consumers? Often times, operating businesses have repeat clients, which develop the core of their daily profits. Specific aspects such as brand-new competition sprouting up around the area, road building, and employee turnover can affect repeat consumers and also adversely influence future profits. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning client base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical house income impact future income prospects?