Business Overview

This opportunity is a full-service plumbing company for sale in West Michigan that offers a wide array of services, including but not limited to the repair and installation of plumbing systems, drain cleanings, water heater services, backflow testing, and PFAS treating. Additionally, the Company specializes in kitchen and bathroom remodeling. The Company completes work for the purposes of new construction, remodels, and retrofitting existing plumbing systems.

The Company was founded 25 years ago and is owned and operated by the original founder. The owner and the owner’s spouse are both actively involved in the Business on a full-time basis. The owner serves as the main communication liaison between prospective customers and fulfills all quoting duties. The owner’s spouse oversees HR, payroll, payables, receivables, and treasury duties.

The Company’s staff is a mix of experienced employees and young newcomers who hope to grow alongside the Company. From an employee standpoint, the combination of both younger and more experienced employees fosters future success as the newer employees are granted the opportunity to learn directly from their co-workers and gain valuable experience. Working alongside these experienced team members prepares the new employees to take over without ever missing a beat when the time is right.

The Company currently operates out of a facility owned through the owner’s real estate holding entity. The property is extremely well-maintained and visually appealing, both on the interior and exterior. The facility has an estimated market value of $1,000,000. Ownership is flexible regarding the sale or lease of the real estate.

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Once we receive your NDA and answers to some basic questions, the Confidential Information Memorandum (CIM) will be sent to you by the project manager.
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  • Asking Price: N/A
  • Cash Flow: $548,052
  • Gross Revenue: $2,614,040
  • FF&E: N/A
  • Inventory: $149,221
  • Inventory Included: N/A
  • Established: 1996

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,000,000
  • Lot Size:N/A
  • Total Number of Employees:17
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates out of facilities owned by the owner. The Company occupies 6,579 square feet of the total 9,825 square feet, while the remaining 3,280 square feet is leased between two non-related third-parties. The Company’s occupied space encompasses 5,200 square feet of warehouse space and 1,379 square feet of office space. The office space includes four individual offices, a conference room, and a lunchroom, while the warehouse space features four bay garage doors for easy access. Both the building’s interior and exterior are in excellent shape, structurally and visually. Facility available for lease or sale.

Is Support & Training Included:

Ownership is willing to provide reasonable and customary assistance during the transition period.

Purpose For Selling:

Ownership would like to pursue retirement.

Pros and Cons:

(1) Established Reputation for Quality: The Company is best known for its reputation above all else. The Company is consistently regarded as knowledgeable, dependable, and friendly. These qualities stem from the Company’s commitment to putting customers first and a shared vision across all employees and management to deliver high-quality customer experiences. (2) Strong Financial Performance: The Company has shown consistent growth and financial performances over the prior years, and especially so throughout 2020 and the COVID-19 pandemic. The Company’s management is forecasting new records in terms of both top-line revenue and bottom-line profits for 2021, illustrating both the management’s and employee’s commitment to the success, growth, and longevity of the Company. (3) Extensive Community Involvement: The Company is heavily involved within the local community, as both the management team and employees enjoy volunteering and maintain a positive Company image. The current owner accredits much of the Company’s success and growth to the Company’s awareness and standing within the community, as the Company is often top-of-mind for anyone desiring plumbing and/or remolding services in the area.

Opportunities and Growth:

(1) Increase Recruitment from Local Skilled Trades Programs (2) Further Expand into the Commercial Market Segment (3) Implement CRM Software to Improve Marketing Capabilities

Additional Info

The business was founded in 1996, making the business 26 years old.
The transaction doesn't include inventory valued at $149,221*, which ins't included in the suggested price.

The company has 17 employees and is located in a building with disclosed square footage of 1,000,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of other factors. This is why it is very vital that you not count totally on a vendor's word, but instead, make use of the seller's solution together with your overall due diligence. This will paint a much more practical picture of the business's present situation.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering points such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that earnings margins are too tight. Lots of companies fall into 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 take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new customers? Many times, companies have repeat consumers, which develop the core of their day-to-day revenues. Particular aspects such as brand-new competitors sprouting up around the location, roadway construction, and also staff turnover can influence repeat clients and adversely impact future incomes. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the chance to construct a returning consumer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the regional mean home income effect future earnings prospects?