Listing ID: 77598
This reputable electrical and communication contractor has a niche servicing a sector that has dependable growth for decades to come. This business has 7 highly skilled techs trained by the seller, fully paid equipment, fortune 500 clients regularly call on this business to service them and a seller that is willing to stay on until the buyer is comfortable.
C10 and General B license is required to operate this business.
Clean books and records.
SBA financing available.
$823,000 Receivables, $10,000 inventory included in the sale price.
- Asking Price: $3,830,000
- Cash Flow: $1,761,071
- Gross Revenue: $2,915,670
- EBITDA: $637,071
- FF&E: $691,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,400
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Industrial space, they keep some inventory and equipment. Lease can easily be renewed.
The seller is including 8 weeks of training in the sale but will remain as a paid consultant for a year if necessary.
Possible move to early retirement
This business has a niche specialty and a great reputation in the field for being the "go to company" to provide this type of low voltage service.
The growth is exploding in this sector and the top 2 clients already has expansion plans that will cause the company to grow along side them.
The venture was started in 1985, making the business 37 years old.
The deal will include inventory valued at $10,000, which is included in the requested price.
The company has 8 employees and is situated in a building with disclosed square footage of 2,400 sq ft.
The real estate is leased by the business for $2,520 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the true reason and the one they say to you might be 2 entirely different things. As an example, they may state "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is very vital that you not count entirely on a vendor's word, but rather, utilize the seller's solution together with your overall due diligence. This will paint a much more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can indicate that revenue margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new clients? Often times, companies have repeat customers, which develop the core of their everyday revenues. Specific elements such as new competitors growing up around the location, road construction, and staff turn over can affect repeat clients and adversely impact future incomes. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the possibility to develop 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? Exactly how might the regional mean home earnings influence future revenue potential?