Listing ID: 84015
Business Overview
This long-established contractor has a significant repeat clientele. The business is mostly service (95%) and is 70% commercial refrigeration work and 30% residential HVAC. The current technicians have additional capacity to expand the business and the Seller can further explain this.
Full equipment list, financials and all other details are available to qualified buyers! There are many opportunities for growth and an experienced employee team. The area demographics are excellent, and it is a great location to live and work! This is a great opportunity for acquisition by another contractor looking to expand or a great stand-alone business for someone looking to live in a vacation area!
Company currently operates out of home office and could be easily moved locally.
Financial
- Asking Price: $459,000
- Cash Flow: $195,000
- Gross Revenue: $506,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2012
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:4
- Furniture, Fixtures and Equipment:N/A
Company currently operates out of home office and could be easily moved locally.
Owner will assist in a smooth transition
Owner moving on to other business interests
Additional Info
The venture was started in 2012, making the business 10 years old.
The transaction does include inventory valued at $5,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. Nonetheless, the genuine factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competitors, current reduction in incomes, or a variety of various other reasons. This is why it is really vital that you not rely totally on a vendor's word, however rather, utilize the vendor's solution together with your total due diligence. This will paint a much more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Many times, operating businesses have repeat clients, which develop the core of their everyday revenues. Specific aspects such as brand-new competitors sprouting up around the location, road building and construction, and employee turn over can affect repeat consumers as well as adversely impact future incomes. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the chance to build a returning customer base. A last thought is the basic area demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the local mean household income impact future revenue prospects?
