Listing ID: 82084
Well known and long established, successful plumbing business for sale.
Operating in a small town in Iowa. In spite of small size, the business is recognized as a leader in the plumbing services they provide. Business has operated conscientiously with fair pricing and integrity for 40 years by the same Owner. Seller wants to retire and pass the business on to a new owner who will continue the business in the same manner as he has valued his customers.
Business has been ran with one employee, the Owner. He uses contractors when needed This business is an excellent opportunity for an individual buyer to own a profitable plumbing business or an existing business owner who wants to grow through acquiring another plumbing company.
- Asking Price: N/A
- Cash Flow: $63,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $4,500
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,800
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Owner will stay on and train the Buyer for up to 90 days full-time then part-time for the next 60 days.
Seller is at Retirement Age
Very little competition for the type of commercial plumbing the Seller does currently
The venture was started in 1985, making the business 37 years old.
The deal doesn't include inventory valued at $4,500*, which ins't included in the suggested price.
The business has 1 employees and resides in a building with approx. square footage of 4,800 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. However, the genuine reason and the one they say to you may be 2 absolutely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or an array of other reasons. This is why it is extremely essential that you not count absolutely on a seller's word, but rather, utilize the seller's solution in conjunction with your overall due diligence. This will repaint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new consumers? Many times, operating businesses have repeat consumers, which develop the core of their everyday revenues. Particular aspects such as new competitors sprouting up around the location, road construction, and employee turn over can influence repeat clients and negatively influence future revenues. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the neighborhood average family income effect future income potential?