Listing ID: 80191
This Industrial Supply House provides equipment, parts, and installation supplies to licensed residential and commercial HVAC companies. They are a one-stop-shop for all new installation and repair supply needs for their customers and are known for their extensive inventory of product lines by top manufacturers at competitive prices.
The business has a broad service area covering several counties in the metro Atlanta and Athens area serving approximately 200 customers plus cash walk-in clientele daily.
• NO CONSUMER TRADE; CUSTOMERS ARE WHOLESALE CLIENTS.
• Offers delivery and pickup of products.
• Excellent opportunity to increase sales in several areas:
o Only 5% of revenue is delivery of product. Adding a delivery fleet and personnel will boost sales dramatically.
o The business has no marketing plan in place.
o The business does not have a web presence.
o Adding a fulltime outside salesperson would significantly grow revenue.
• Owner is willing to stay after the sale in an outside sales role.
- Asking Price: N/A
- Cash Flow: $130,055
- Gross Revenue: $1,070,205
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $123,000
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:21,000
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company leases a 21,000 square foot facility containing a showroom, office spaces, counter sales are as well as three rollup doors and loading docks for both delivery and pickup. The lease amount is $3,000 per month with about $400 in utilities.
The business was established in 2010, making the business 12 years old.
The sale won't include inventory valued at $123,000*, which ins't included in the suggested price.
The company has 2 employees and resides in a building with disclosed square footage of 21,000 sq ft.
The real estate is leased by the company for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the genuine reason and the one they say to you may be 2 completely different things. For instance, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a variety of other reasons. This is why it is very vital that you not depend entirely on a seller's word, yet instead, make use of the vendor's answer in conjunction with your general due diligence. This will repaint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things such as supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Many times, companies have repeat consumers, which form the core of their daily profits. Particular variables such as new competitors sprouting up around the area, roadway construction, and staff turn over can impact repeat clients as well as adversely affect future earnings. One important thing 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? Clearly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final thought is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the regional typical family income influence future earnings prospects?