Listing ID: 79079
Great opportunity to acquire a commercial and residential electrical contracting business that has been going strong for over 25 years. The Business has a large and loyal customer base and strong relationships with a number of general contractors. The Business primarily services clients on the Seacoast of New Hampshire and Maine. Owner is ready to retire and transition employees to a new Buyer. The ideal buyer is an individual or Company with the required experience and licensing to run the business.
- Asking Price: $275,000
- Cash Flow: $83,000
- Gross Revenue: $600,000
- EBITDA: $83,000
- FF&E: $90,000
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
The business is run out of the Seller's home.
Seller is willing to assist in support and training.
The Business has a strong repeat business and opportunities for growth are outlined in the confidential package.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competitors, current reduction in revenues, or an array of other factors. This is why it is really vital that you not count entirely on a vendor's word, however rather, make use of the seller's answer in conjunction with your general due diligence. This will paint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover things like inventory, payroll, accounts payable, and so on. Remember that occasionally this can imply that revenue margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new clients? Often times, businesses have repeat customers, which create the core of their daily profits. Specific variables such as brand-new competitors growing up around the area, roadway building, as well as employee turnover can affect repeat clients as well as adversely affect future revenues. One essential point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the higher the chance to build a returning consumer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the regional average family earnings impact future earnings prospects?