Listing ID: 82569
Business Overview
The company is the preferred plumber for over a dozen recurring and loyal general contractors! The listing is a specialty trade worker providing quality Waste & Vent plumbing for Water, Gas, and Soil Systems, as well as top/trim-outs and finishing phases. Offering services to both commercial projects and new residential constructions surrounding its geographic region, they are currently servicing a 40-mile radius in the Phoenix Metro area. Even as Gross Sales continue to increase annually with Profits now holding steadily north of $300,000; opportunities exist by accepting invites to Municipal and Governmental projects to further their industrial growth. Besides the occasional charity and direct contact from Blue Page promotions, advertising efforts rely on verbal referrals and regular call invites from repeat clientele, giving giant potential for online engagements. Thanks to high reviews and a large customer base, listing enjoys flexibilities for strategic optimizations as the Total Revenues for 2021 reached $2,413,477 along with Seller Discretionary Earnings of up to $309,201. The home-based location utilizes a rented warehouse space in excellent condition, allowing easy relocation or expansion within the county. With equipment including vehicles and full trailers with pipe drain machines needed for gas installs, everything is in place for a smooth transition. Experienced personnel are most likely to remain post-purchase while seller will be available for a yearlong transitioning period. While the current ownership enjoys involvement in day-to-day activities, employees and supervisors are cross trained allowing part-time involvement for new ownership, if desired.
Financial
- Asking Price: $1,500,000
- Cash Flow: $309,201
- Gross Revenue: $2,413,477
- EBITDA: N/A
- FF&E: N/A
- Inventory: $25,000
- Inventory Included: Yes
- Established: 2005
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
Business is Home-Based and can be Relocated! (Home Based)
Supervisors are cross trained allowing part-time involvement during Owner Transition.
Other interests.
This Business Is Home Based
Additional Info
The business was started in 2005, making the business 17 years old.
The transaction does include inventory valued at $25,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. However, the genuine reason vs the one they say to you may be 2 completely different things. For instance, they may state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a range of other factors. This is why it is extremely crucial that you not rely absolutely on a vendor's word, however rather, make use of the vendor's answer in conjunction with your total due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new customers? Many times, companies have repeat clients, which develop the core of their daily profits. Particular elements such as brand-new competitors growing up around the location, road construction, and personnel turn over can impact repeat consumers as well as adversely affect future incomes. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to build a returning consumer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood median household income impact future income prospects?
