Listing ID: 80756
Business Overview
This opportunity is a thriving, four-decade established commercial contractor that specializes in a niche of construction related products. The operation sells, installs, services and repairs the products and associated accessories. The Company also custom fabricates products in their shop to the customer’s specifications. Since inception the business has grown dramatically, starting as an installation Company and diversifying by continuing to add additional services. Now, they are a one stop shop providing all goods and related services to complete a job from start to finish.
Financial
- Asking Price: $3,400,000
- Cash Flow: $550,713
- Gross Revenue: $1,189,526
- EBITDA: N/A
- FF&E: $253,915
- Inventory: $860,000
- Inventory Included: Yes
- Established: N/A
Detailed Information
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business operates out of a 7,150 square foot centrally located office and warehouse building, comprised of approximately 1,375 square feet of professional office space and +/-5,775 square feet of warehouse and production area. The building is in immaculate condition with multiple office spaces in front including a kitchen/break area and bathroom. The warehouse has high ceilings, mezzanine storage, polished concrete floors, three large bay doors and two bathrooms. The facility has ample capacity for the business, fabrication work and housing the large amount of inventory required.
Retirement
This Company has a great reputation in the valley for quality work and being extremely knowledgeable about the products and accessories they sell, install and service. Their diverse customer base relies on the business for a consistently high level of quality installation and service coupled with a philosophy of always putting the customer first. Because of their stellar reputation and large referral base they do not advertise—business comes to them through positive word of mouth.
An ideal buyer would be an entrepreneur with business and/or construction experience or a Company in a related industry interested in synergistic qualities and immediate market share. THE POSSIBILITIES A new owner could expand into other services not currently offered. Hiring an outside sales person and advertising would increase awareness and sales.
Additional Info
The transaction shall include inventory valued at $860,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the true reason and the one they say to you may be 2 absolutely different things. As an example, they might claim "I have too many other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of various other reasons. This is why it is extremely vital that you not depend totally on a seller's word, but instead, make use of the vendor's response in conjunction with your overall due diligence. This will paint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money in order to cover points such as stock, payroll, accounts payable, and so on. Remember that in some cases this can mean that profit margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that have to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new clients? Most times, companies have repeat customers, which develop the core of their daily profits. Particular elements such as new competition sprouting up around the location, road building and construction, as well as staff turn over can impact repeat customers as well as adversely influence future earnings. One essential point to consider 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 individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical household income effect future income prospects?
