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Opportunities

South-East Michigan Piping Company

$1M in backlog for 2022!

CASH FLOW
$347,503

Specifications

  • Location
    Livonia, Michigan

  • Revenue
    $2,167,310

  • Service Area
    Southeast Michigan

This South-East Michigan Piping Company presents a huge opportunity for a strategic owner. With an excellent reputation and $1M in backlog for 2022, as well as huge growth opportunities in marketing and hiring, this business is extremely rewarding for the ambitious owner. The seller is looking to stay on for 2-3 years to help set the business up for great success in the face of growing competition.

 

The company boasts a team known for quality, punctual work delivered with a personal touch. With 25% of their work in pipe-fitting and 75% in plumbing, including both reworking existing pluming and installing new, this company has earned their high reputation and enjoys a strong base of repeat clientele due to the quality and timeliness of their work.

 

Situated in a growing industry in a strong location, clear growth opportunities present the strategic owner a route to great rewards in the face of growing competition. The current owner only does cold calls when they have time, and a marketing campaign can elevate this business to an even larger client base, which will then be subject to a high repeat client percentage. A well planned hiring campaign to bring in more laborers offers another path to 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. There is plenty of room to expand operations and bring in more laborers. Servicing clients throughout the South-East Michigan area, this business returns $150,124 in the first year after debt payments, with a 10% down payment of $130,000.

Purchase Price:

$1,300,000

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Years
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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:
 $
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
 $
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
Omaha, NE 68114

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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.