Listing ID: 83502
In business for more than 25 years, the owners are both hardworking, master plumbing contractors who have a proven track record of honest and fair workmanship. As a result, the business benefits from a large, loyal local following in the greater Portland area.
- Asking Price: $525,000
- Cash Flow: $231,100
- Gross Revenue: $1,334,200
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: N/A
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Radiant in slab heating.
Owners are retiring.
The venture was established in 1986, making the business 36 years old.
The deal shall not include inventory valued at $10,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nevertheless, the genuine factor and the one they tell you might be 2 totally different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or a variety of various other factors. This is why it is really important that you not rely entirely on a vendor's word, however instead, use the vendor's response combined with your overall due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Often times, businesses have repeat consumers, which form the core of their daily earnings. Certain aspects such as new competitors sprouting up around the location, road construction, and also employee turn over can affect repeat consumers and negatively affect future incomes. One crucial point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the local mean home earnings influence future revenue prospects?