Listing ID: 82559
Business Overview
Servicing within a two-hour radius in Northern California, this company holds high online reviews, a strong command over niche markets and cross-trained staff allowing flexibility to strategize optimizations. This listing specializes in providing commercial state-of-the-art telecommunications, VoIP, video surveillance, access control, networking infrastructure, WiFi systems and fiber optic cabling. A high volume of service calls competes with new business installs. Additional revenue streams include commission income streams from long-distance services, managed network services and maintenance contracts. Offering IT support packages is one realm of untapped opportunity. The experienced team of five nonunion employees is most likely to remain post-purchase to continue streamlined operations. The seller will be available for a standard transitioning period plus consultation. The 3,000 square foot facility sits within an industrially zoned area, featuring approximately 1,200-sq. ft. office space and 1,800-sq. ft. of warehouse with an overhead door. Preferred to be leased at $2,300 per month for five years with an option to buy afterwards, property is found in great condition. Through superior and quality services, repeat business and referrals from a large customer base—plus a website, are the current sources of new business leaving open many opportunities for promotion. Projecting to outpace previous gross sales in 2022, Total Revenues for 2021 reached $519,315 alongside Seller Discretionary Earnings (SDE) of $80,157. Flying, a personal favorite of the owner, who using SDE, acquired a $90,000 Piper Aztec in 2000 to facilitate faster service time (decommissioned in 2018).
Financial
- Asking Price: $495,000
- Cash Flow: $80,157
- Gross Revenue: $519,315
- EBITDA: $80,157
- FF&E: $98,536
- Inventory: N/A
- Inventory Included: N/A
- Established: 1982
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Property available for purchase after a five-year Lease Agreement! Nicely appointed office with oak office furniture, artwork, plants and color scheme. Two-story shop with overhead door, walled office with air conditioning, parts setup on second floor.
Standard Owner Transition period plus consultation.
Approaching retirement and/or pursuing other interests.
Previously a $1.2M business, easily expand with concerted marking efforts for new businesses, and reaching out to the over 800+ customer base for referrals and upselling long-term/loyal customers. Already at top page listing on Google with five-star reviews also on Yelp to help you along.
Additional Info
The venture was founded in 1982, making the business 40 years old.
The business has 5 nonunion. employees and is located in a building with approx. square footage of 3,000 sq ft.
The real estate is leased by the company for $2,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or an array of various other reasons. This is why it is very vital that you not depend completely on a vendor's word, yet instead, make use of the vendor's response along with your overall due diligence. This will paint a more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover things like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that revenue margins are too small. Lots of companies fall into a revolving door of taking on debt 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 building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new customers? Often times, companies have repeat customers, which create the core of their everyday revenues. Particular variables such as new competition sprouting up around the area, roadway construction, and employee turn over can impact repeat clients and adversely influence future incomes. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the better the chance to build a returning customer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the neighborhood typical family earnings effect future revenue prospects?
