Listing ID: 79098
This electrical contracting company has been servicing it’s customers for 14+ years. Through exceptional workmanship and attention to detail, this operation has grown to include a team of electricians and a fleet of vehicles that service a loyal customer base. The business currently does 85% residential and 15% commercial. Now for sale, this strong cash flowing business would be the perfect opportunity for someone to purchase and become their own boss, or, an existing electrical contractor to acquire and expand their reach.
- Asking Price: $995,000
- Cash Flow: $387,355
- Gross Revenue: $1,344,703
- EBITDA: N/A
- FF&E: N/A
- Inventory: $6,000
- 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:7
- Furniture, Fixtures and Equipment:N/A
As needed / to be negotiated.
The transaction doesn't include inventory valued at $6,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nonetheless, the true factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a range of other reasons. This is why it is really crucial that you not depend absolutely on a vendor's word, yet rather, make use of the vendor's response in conjunction with your general due diligence. This will repaint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover points like supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new customers? Often times, companies have repeat consumers, which create the core of their everyday revenues. Certain elements such as brand-new competitors sprouting up around the location, road building, and also personnel turnover can impact repeat customers as well as negatively impact future revenues. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business regularly, the better the possibility to develop a returning client base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood typical home income effect future earnings prospects?