Listing ID: 77364
This acquisition opportunity is for a well-established, referral-based HVAC, Plumbing and Appliance installation and repair business in Santa Cruz area. The business is built thru referrals with calls to company phone numbers. The are no active marketing or social media campaigns.
A buyer for this business will need to have appropriate California “General B” Contractor License or specialized contractor licenses in HVAC, Plumbing and/or Electrical with experience in HVAC & Plumbing residential services.
The retiring owner will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business. Owner wants customers and buyer to be supported well in the transition. One of the FTE (family member) will not transfer with the sale. This is priced attractive to meet Seller requirements for a quick sale.
- Asking Price: $195,000
- Cash Flow: $240,000
- Gross Revenue: $1,100,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $40,000
- Inventory Included: N/A
- Established: 1991
- 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
Home office (Home Based)
Seller will train new owner.
This Business Is Home Based
The company was established in 1991, making the business 31 years old.
The deal won't include inventory valued at $40,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. However, the genuine reason vs the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of other factors. This is why it is extremely crucial that you not depend totally on a vendor's word, yet rather, use the seller's answer along with your overall due diligence. This will repaint a much more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Most times, businesses have repeat customers, which develop the core of their daily profits. Specific factors such as brand-new competition growing up around the area, road building and construction, as well as employee turnover can impact repeat customers and adversely impact future profits. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the better the chance to construct a returning client base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? How might the regional mean family earnings impact future earnings potential?