Listing ID: 79071
Opportunity to acquire a highly successful and profitable speciality plumbing business. The Business has a large and loyal customer base, great customer reviews and is focused on a tight geographic market. The Business primarily services clients on the Seacoast of New Hampshire and York County Maine. The owner is ready to retire and transition employees to a new Buyer. A new Buyer does not need to have a plumbing license but construction and/or trade experience is a plus.
NDA is required to receive the confidential package on the business.
- Asking Price: $995,000
- Cash Flow: $370,000
- Gross Revenue: $990,000
- EBITDA: $370,000
- FF&E: $175,000
- Inventory: $9,000
- Inventory Included: N/A
- Established: N/A
The business is run out of an office and garage on the Seller's property.
Seller is willing to assist in support and training.
Other competitors in the business but few with such strong customer reviews and recurring business.
The Business has a strong repeat business and opportunities for growth are outlined in the confidential package.
The sale doesn't include inventory valued at $9,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nonetheless, the genuine factor and the one they say to you may be 2 totally different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, current decrease in earnings, or a range of various other reasons. This is why it is very vital that you not count absolutely on a vendor's word, however rather, use the vendor's response in conjunction with your general due diligence. This will paint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover things such as stock, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various 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 might have existing contracts with vendors that should be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new clients? Most times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Certain variables such as new competition growing up around the location, roadway construction, and employee turnover can affect repeat clients and also negatively influence future revenues. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the regional mean household income effect future earnings potential?