Listing ID: 83668
Well-established, profitable professional engineering consulting firm, that focuses on evaluation, restoration, and waterproofing of existing, commercial buildings. Most of their business is from referrals and repeat business from Property Managers and Commercial Building Owners, including 3 of the largest real estate management companies in the DC metro area, providing any buyer with steady future revenue projections and opportunity for expansion.
What the owners have enjoyed most about their business is the flexibility it provided, the ability to direct their path, and being able to act as that trusted advisor to their clients and professional intermediary between the construction contractor and the client.
Services provided include forensic evaluations and condition surveys of existing buildings, design and preparation of construction plans for building repair and restoration, and construction and post-construction services including contract administration.
- Asking Price: $350,000
- Cash Flow: $180,350
- Gross Revenue: $285,245
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the real reason and the one they tell you may be 2 entirely different things. For instance, they might state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is extremely important that you not rely entirely on a seller's word, but rather, utilize the seller's answer combined with your general due diligence. This will paint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that earnings margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new consumers? Most times, companies have repeat customers, which create the core of their everyday profits. Certain aspects such as new competition sprouting up around the area, road construction, and also personnel turnover can affect repeat consumers and adversely influence future earnings. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the regional mean house earnings effect future revenue potential?