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Opportunities

Fully Commercial Plumbing and Pipe-fitting

80% repeat client base with $1M in backlog

CASH FLOW
$347,503

Specifications

  • Price
    $998,000

  • Revenue
    $2,850,712

  • Cash Flow
    $347,503

  • Equipment
    $340,588

  • Location
    Detroit, Michigan

  • Employees
    11 employees. 7 field technicians. 2 estimators, a bookkeeper and an admin.

This business has a client base made up of 80% repeat customers in a variety of industries including industrial, healthcare, and municipal clients. Based in Detroit, Michigan, this well-established business is centrally located between Ann Arbor, Flint, Detroit, and Toledo. The current owner is active in the business overseeing estimates and visiting job sites once a week. The owner of this plumbing and piping company is looking for a strategic partner to grow the business further and is planning to stay on with the business for 2-3 years to assist in this anticipated growth and ensure a smooth transition. The master plumbing license is not held by current ownership but instead is held by a trusted employee. Services that are offered include plumbing (which makes up 75% of service base) and pipefitting (25% of service area). The company comes with a well-established team of 11 including 7 field technicians, 2 estimators, 1 bookkeeper, and 1 admin. This business is primed for new ownership, with the projected $1,000,000 in backlog and $600,000 of new projects in their pipeline to be bid on.

Priced at $998,000 the purchase of this company includes all the assets that new ownership will need to continue and grow the current business operation. This includes vehicles, equipment, tools, trailer, and a working capital of $150,934 which, altogether, add up to be valued at $491,522. With their exponentially high rate of return clients, an added marketing or advertising campaign could be expected to result in ongoing dividends of returning clients for years to come. A well-planned hiring campaign to bring in more laborers offers another path of growth. The team works out of 5,000 sq. ft. building with 3,500 sq. ft. dedicated to the shop, and 1,500 sq. ft. to the office for $2,250 per month. There is plenty of room to expand operations both in the amount of space currently leased and in the opportunities that a buyer could easily take advantage of to see an ongoing development.

Purchase Price:

$998,000

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Years
%

Bank Loan Needed: $

Years
%
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$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2020
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.