Profitable Plumbing & Heating Contractor For Sale

Business description

This long established plumbing and heating contractor provides plumbing and hot water heating installation, service, and parts largely to the residential market. Besides contract work, the company has a small retail store that offers a variety of plumbing and heating products.

The business was started in 1954 and was purchased by the two existing owners / operators in 1972. Revenues have been consistently $1.2 million per year and the company has been profitable for the life of the business with the existing owners.

At the wishes of the owners, the company has remained at the same level of profitability and sales for the last number of years. This is a stable profitable company offering services in a market where demand exceeds supply. With a new entrepreneur owner that has the drive and energy will quickly take the company to the next level. It also would be a good fit for someone or company in a similar line or complementary line of business today.
A new owner with the assistance of some automation will be able to bring much greater efficiencies to the business and achieve a greater degree of profitability. If the new owner is in a similar line of work today, there are a number of options to operate more effectively as well..

The owners are asking $570,000 for the business which includes inventory, account receivable, store operations, vehicles, office furniture and equipment. The owners wish it to be a share sale. The company has no debt or long term obligations. There is significant amount of flexibility the structure of the transaction. The owners are open to looking at various options on the property as well as some form of seller financing. The two owners are also willing to stay on for a specific period of time to ensure the transition of the business is a successful one.

Property information

Real Estate:

Real Property Included

Premises details:

Location is on a main street in city with easy access. The facilities are presently being leased by the company. The building is 20 years old and the owners are willing to look at selling it or a long term lease. Besides the business for sale, there is one other tenant in the building. The building is approximately 4,800 sq. feet. Good customer parking out front with plenty of space behind for employees.

Other information

Expansion potential:

Given that demand exceeds supply, additional plumbers and junior management could be added to grow the business. The business is low technology so much greater efficiencies could be added with very little investment by a new owner.

Competition / Market:

There are several competitors but the company has a strong reputation and relationships in the local area and has been profitable for many years. Competition is stable and at times will work together in certain areas. There is more general demand than supply in the local market area.

Support & training:

Both owners will remain for a reasonable amount of time after the sale.

Reasons for selling:

Both owners are in their sixties and are looking to retire.

Financing available:

Willing to look at seller financing and / or to sell or lease the premises to the new owner.

Furniture / Fixtures value:

$48,200 (included in the asking price)

Inventory / Stock value:

$122,000 (included in the asking price)