Listing ID: 77557
This profitable plumbing business is family owned for over 10 years and it has several business accounts. This well-established company comes complete assets required for operations – tools, equipment, fleet, and management software.
The company offers a full range of plumbing services including emergency services and has been serving both residential and business customers. They have several loyal business customers. The management had demonstrated emphasis on quality workmanship and customer satisfaction. The company has several positive online reviews & excellent client retention rates.
This is a great opportunity for an existing player or entrepreneurs to expand into new market and diversify their services. Owners are available for a smoother transition and training.
- Asking Price: $675,000
- Cash Flow: $275,370
- Gross Revenue: $715,575
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 completely different things. As an example, they might claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competitors, current reduction in incomes, or a variety of other factors. This is why it is extremely crucial that you not depend totally on a seller's word, but rather, utilize the vendor's solution together with your overall due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new customers? Often times, businesses have repeat customers, which form the core of their day-to-day revenues. Specific elements such as new competition sprouting up around the location, road building and construction, and employee turn over can influence repeat clients as well as adversely influence future incomes. One essential thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the greater the possibility to develop a returning client base. A last thought is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the local mean family earnings impact future income prospects?