Listing ID: 77407
Long established, profitable and well respected for over 18 years, this full service mobile climate company provides air-conditioning, heating and power generation to clients in need. They service the Hollywood entertainment industry, commercial clients and government agencies. They have proprietary equipment that was designed and built by the owner – allowing for easy transport, highly effective results and happy customers. Seller states that business has been growing, new accounts are coming in every day and the future looks bright for this rare opportunity. The business continues to grow on word of mouth and repeat business but seller states that there is tremendous opportunity in aggressively pursuing existing lines of business and rekindling previous industries as well. This business is owner operated with some part time employees with an ability to easily scale if desired. The business provides great flexibility and seller states over 30 days per year on vacation. If you are looking for a product/service that is always in demand and that gets you into some of the biggest clients in Los Angeles to build your business, then this is a business worth considering. NO SPECIAL LICENSES REQUIRED
- Asking Price: $599,000
- Cash Flow: $324,380
- Gross Revenue: $573,241
- EBITDA: N/A
- FF&E: $67,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Looking to Retire
The business was started in 2001, making the business 21 years old.
The company has 5 employees and resides in a building with estimated square footage of 2,000 sq ft.
The building is leased by the business for $320 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nevertheless, the true factor and the one they tell you may be 2 entirely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or a range of other factors. This is why it is really crucial that you not count absolutely on a vendor's word, yet instead, use the vendor's answer combined with your total due diligence. This will repaint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover items such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that profit margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new consumers? Most times, companies have repeat customers, which develop the core of their day-to-day revenues. Certain elements such as brand-new competition growing up around the location, roadway building, and employee turn over can impact repeat customers and adversely impact future incomes. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? Exactly how might the regional average home earnings impact future revenue potential?