Listing ID: 80657
FY2021 (11) Profits to Owner $106k Sale Price $230k
This plumbing business has been established for 40 years servicing the commercial and residential communities on the island of Oahu. A home-based business trusted in a growing community. Customers have known this business because of its emergency service calls. The business is recognized with a solid reputation in the neighborhood and loyal customers.
-40 years in business
-Trusted and recognized by the community
-High-quality and loyal customers
-Unaffected by the pandemic
-An ideal location to grow and expand customer reach
-Opportunity to scale and capture services to high-value estates
The owner will commit to working alongside the incoming owner for a period of 3 months. After the handover and training end, the owner agrees to offer consultation for a fee.
This business is suitable for someone who has an existing business in the industry or someone with an extensive background with knowledge in business & its activities, technical expertise including techniques, and customer service protocols.
Asking Price: $230,000
- Asking Price: $230,000
- Cash Flow: $106,000
- Gross Revenue: $167,000
- EBITDA: N/A
- FF&E: $102,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The owner is retiring.
This Business Is Home Based
The company was founded in 1980, making the business 42 years old.
The deal will include inventory valued at $50,000, which is included in the requested price.
The business has 1 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nonetheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to try to hide the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is really vital that you not rely totally on a seller's word, yet instead, use the vendor's response in conjunction with your general due diligence. This will repaint a much more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Remember that sometimes this can suggest that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new consumers? Most times, companies have repeat customers, which form the core of their daily earnings. Specific elements such as brand-new competitors sprouting up around the area, roadway building, and also employee turn over can affect repeat clients and also negatively influence future profits. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to build a returning customer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Just how might the local median home income impact future income prospects?