Business Overview

The Company designs fabricates, monitors, and installs water-based fire protection sprinkler and alarm systems and provides testing, inspection, and repair services to building owners and facility managers. Its customer base is regional and is primarily concentrated in the northeastern part of the US.

The majority of the company’s revenue is related to construction (78%) and the remaining is related to service, inspections, and alarm monitoring.

Financial

  • Asking Price: N/A
  • Cash Flow: $2,800,000
  • Gross Revenue: $17,500,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • 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:51
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates out of two facilities that are owned by the owners of the business. The owners are offering both pieces of property for sale in conjunction with the sale of the Company.

Is Support & Training Included:

The Seller anticipates that the management team will remain with the Company as employees for a reasonable salary with terms and conditions to be agreed upon. They will assist with the transition and training, making every effort to ensure the Company's future success. The owners are willing to enter into an employment agreement with the acquirer to continue to serve the Company, it’s customers and employees.

Purpose For Selling:

Owners feel that new leadership can make this company grow stronger.

Additional Info

The company was established in 2009, making the business 13 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell operating businesses. Nevertheless, the true factor vs the one they tell you might be 2 absolutely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is very important that you not rely absolutely on a vendor's word, however rather, make use of the vendor's solution along with your overall due diligence. This will paint a much more reasonable picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in brand-new customers? Most times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular elements such as brand-new competition growing up around the area, roadway building and construction, and also staff turnover can impact repeat clients as well as adversely affect future profits. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood median home earnings effect future revenue potential?