Listing ID: 80411
Business Overview
Large Electrical Contractor with around 3 million in sales for 2021 that has continued to grow significantly year over year. The company has a very diverse line of business- customers include commercial and residential, service and new construction. Using a combination of W-2 employees and 1099 contractors the owner is able to keep the overhead cost low. The owner of this business is willing to remain part of the team for up to a year.
The business is located about 60 miles east of Atlanta, GA. The service area covers Athens and several other communities.
The company has more than one license holder working in the business.
The Purchase Price includes:
$400,000 in inventory
$500,000 in Real Estate (2 acres), 4000 sq ft building
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Financial
- Asking Price: $2,700,000
- Cash Flow: $466,664
- Gross Revenue: $2,975,881
- EBITDA: N/A
- FF&E: $175,000
- Inventory: $400,000
- Inventory Included: Yes
- Established: 2016
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:6
- Furniture, Fixtures and Equipment:N/A
4 weeks
other interest
Additional Info
The business was founded in 2016, making the business 6 years old.
The deal will include inventory valued at $400,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. However, the genuine factor vs the one they tell you may be 2 entirely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other factors. This is why it is really important that you not depend totally on a seller's word, however instead, utilize the seller's answer together with your overall due diligence. This will repaint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover items like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new customers? Most times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Certain aspects such as brand-new competitors growing up around the area, roadway building and construction, and personnel turnover can influence repeat customers and negatively influence future revenues. One essential point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final idea is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional average household earnings impact future revenue potential?
