Business Overview

Multi county Plumbing Contractor servicing new construction, commercial and residential customers. Full-service plumbing contractor running 6 fully equipped vehicles. Building available for $450,000. Call for more details and NDA. Please refer to listing number 7101-648944 and advisor John Zarou when inquiring on this listing.

Financial

  • Asking Price: $2,100,000
  • Cash Flow: $587,578
  • Gross Revenue: $2,160,073
  • EBITDA: N/A
  • FF&E: $500,000
  • Inventory: $20,000
  • Inventory Included: Yes
  • Established: 2009

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Lease/Month: 3000 Square Footage: 1800 Building Type: Warehouse Terms & Options: TBD Expiration Date: 9/26/2024

Is Support & Training Included:

Seller will train for 2 weeks at no cost.

Purpose For Selling:

Other

Additional Info

The venture was established in 2009, making the business 13 years old.
The sale will include inventory valued at $20,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. However, the real reason vs the one they say to you might be 2 entirely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or an array of various other factors. This is why it is extremely crucial that you not depend absolutely on a seller's word, yet rather, make use of the vendor's response combined with your general due diligence. This will repaint an extra reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be met or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new clients? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Specific variables such as new competition sprouting up around the area, roadway building and construction, as well as staff turn over can impact repeat consumers and negatively impact future revenues. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood median home income impact future revenue potential?