Business Overview

Well established Chicago area plumbing contractor that focuses on new developments, large scale renovations, and provides complete site work, with average jobs being over $1 million. A strong team is in place that can handle running several large projects at a time and willing to stay on long-term with new ownership.

Financial

  • Asking Price: $3,250,000
  • Cash Flow: $600,000
  • Gross Revenue: $11,000,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:40
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7500 sq feet in the Chicago suburbs. The business operates all over the Chicago metro and could easily be relocated to a new or existing facility.

Is Support & Training Included:

Full team in place and Owner will stay on as-needed to ensure as smooth transition.

Purpose For Selling:

Retirement

Pros and Cons:

Union Shop, skilled-labor pool to draw on as-needed.

Additional Info

The company has 40 employees and is located in a building with approx. square footage of 7,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. However, the genuine factor and the one they tell you may be 2 completely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a range of various other factors. This is why it is really crucial that you not rely entirely on a seller's word, but rather, use the vendor's answer together with your general due diligence. This will repaint a much more practical image of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract brand-new consumers? Often times, companies have repeat customers, which develop the core of their daily earnings. Certain aspects such as new competitors growing up around the location, roadway building and construction, as well as staff turnover can affect repeat consumers and also adversely impact future profits. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the possibility to build a returning client base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood typical house income impact future earnings prospects?