Business Overview

The Company is an innovative leader in designing and engineering solutions for their customers. The team focuses on carbon footprint reduction in the valley and energy savings for the customers. The Company has been
successful in obtaining significant energy saving rebates for several of its customers. This type of forward thinking has saved customers hundreds of thousands of dollars.

The Company primarily services the San Joaquin Valley, but occasionally services customers in the Bay Area and Sacramento. The Company’s hours are 8 am – 5:00 pm, Monday through Friday and closed Saturday and Sunday. However, the Company maintains a 24/7 service line for emergency situations, serviced by an on-call Technical Service staff.

Financial

  • Asking Price: $2,200,000
  • Cash Flow: N/A
  • Gross Revenue: $5,000,000
  • EBITDA: $500,000
  • FF&E: $300,000
  • Inventory: $549,000
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The sale shall not include inventory valued at $549,000*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell companies. Nonetheless, the real factor and the one they say to you may be 2 completely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or an array of other factors. This is why it is very important that you not rely totally on a seller's word, however instead, utilize the vendor's response along with your general due diligence. This will repaint an extra practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover items such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new customers? Many times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Particular aspects such as brand-new competitors growing up around the area, roadway construction, and personnel turnover can affect repeat customers and negatively influence future revenues. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the higher the opportunity to build a returning customer base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood average household earnings impact future income potential?