Listing ID: 81214
Business Overview
Environmentally friendly solution to traditional heating and cooling systems. Very little competition in the thriving regions of Northern Nevada, Lake Tahoe and Northern California.
Clients include new construction or retrofit of existing HVAC systems. Great system solution for rural or remote areas.
Seller will help a buyer be successful and will consider some seller financing!
Financial
- Asking Price: $375,000
- Cash Flow: $169,418
- Gross Revenue: $1,665,951
- EBITDA: N/A
- FF&E: $45,000
- Inventory: $9,500
- Inventory Included: Yes
- Established: 2010
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:3
- Furniture, Fixtures and Equipment:N/A
A retail or office location is not needed for this business. Seller currently maintains a large storage unit for inventory.
Negotiable with good terms
Seller has another business development deal but will remain in the area
Niche business with almost no competition. Seller does not need to advertise. Cash Flow and Gross Income numbers are based on 2018-2021 financials.
Significant growth potential with huge development projects ongoing in the area. A new motivated owner could really grow the business especially now that the business can bid on government contracts.
Additional Info
The venture was started in 2010, making the business 12 years old.
The deal shall include inventory valued at $9,500, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. However, the true reason and the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is very essential that you not rely entirely on a vendor's word, but instead, make use of the vendor's answer together with your overall due diligence. This will paint a much more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can suggest that earnings margins are too thin. Many organisations fall 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 obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Many times, businesses have repeat customers, which create the core of their daily profits. Specific variables such as new competitors growing up around the location, roadway building and construction, and also staff turnover can affect repeat customers and negatively affect future incomes. One essential thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the better the chance to develop a returning client base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the regional mean household earnings effect future income prospects?
