Listing ID: 82561
Business Overview
Over $1M in profit! Servicing the Kansas City Metro and beyond, listing specializes in commercial and residential in-ground pool construction, plus the retail sale of chemicals, pumps, filters and heaters amongst others. Also providing a servicing department skilled in openings, closings, inspections, pool maintenance and repairs; business preserves long-term partner relationships and can be relocated within the radius. Boasting a giant gross sales increase over a three-year average and $5.6 Million in contracted WIP already booked for the next 18 months, company is experienced with a strong reputation dating back over 35 years. Profit Margins for 2021 rose to 40% with Total Revenues of $4,263,846 and Discretionary Earnings reaching $1,683,121 alongside EBITDA’s of $1,440,621. With no customer concentration issues, they offer one-year warranty on parts and labor, listing is flexible to make optimizations and further industrial growth. Reliable personnel of thirteen nonunion employees are most likely to remain post-purchase and continue ongoing operations and seller is available up to 3 years if desired. The prime 14,000 square foot facility features a storefront, showroom, warehouse and pre-production area is surrounded by parking lot and in excellent condition. Benefited by high traffic visibility and commercial zoning to handle additional capacity, the property is available for leasing. Besides maintaining a website and ample contractor networks, marketing efforts center on backing the verbal referrals from their large and recurring customer base through quality and superior products.
Financial
- Asking Price: $4,900,000
- Cash Flow: $1,683,121
- Gross Revenue: $4,263,846
- EBITDA: $1,440,621
- FF&E: $98,500
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1984
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:13
- Furniture, Fixtures and Equipment:N/A
Company Started in 1984; Acquired in 2007. Listing includes Receivables of $1,754,685. Property measuring 14,000+/- square feet is Leased. Business can be relocatable!
Seller is available for up to 3 years of Owner Transition if desired.
Approaching retirement and/or pursuing other interests.
Additional Info
The company was founded in 1984, making the business 38 years old.
The deal will include inventory valued at $100,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell companies. Nevertheless, the true reason vs the one they tell you may be 2 totally different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or a variety of other factors. This is why it is extremely important that you not rely absolutely on a vendor's word, but instead, make use of the vendor's answer together with your general due diligence. This will repaint an extra reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies borrow money so as to cover items like inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too tight. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new consumers? Most times, businesses have repeat clients, which develop the core of their daily revenues. Particular aspects such as new competitors sprouting up around the area, road building and construction, as well as employee turn over can impact repeat customers as well as adversely impact future earnings. One vital point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the chance to construct a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the regional average home earnings effect future income potential?
