60 Yr Old Highly Successful Plumbing Contractor

Beaverton, OR (Washington County)

60 Yr Old Highly Successful Plumbing Contractor
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Asking Price: $1,300,000

Cash Flow: $487,360

Gross Revenue: $2,778,608

EBITDA: N/A

FF&E: $165,000

Inventory: $120,000*

Rent: $1,944 /Month

Established: 1959

*not included in asking price.

60 Yr Old Highly Successful Plumbing Contractor

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Business Description

BUSINESS ACTIVITY: This is a plumbing contractor that offers design-build, consulting and project management for remodeling projects on commercial and residential buildings. The Company’s bid’s most projects between $10,000 to $15,000 but has completed projects for more than $750,000. In 2018, the Company was awarded more than 350 jobs.

HISTORY: The Company was founded in the 1959 and was purchased in December of 1992 by the current owner. 1993 was a rebuilding year. The Owner was able to bring on several new customers to the Company and had developed a mix of about 50% residential and 50% commercial construction business and developed a service department. This ratio has bounced back and forth over the years but has been consistent.

In 1999 the Owner had achieved high sales with 26 plumbers and laborers in the field completing residential sub-division but lost $100,000. The Owner changed his criteria from pre-sold homes and custom homes to remodeling both commercial and residential. He knew that he would make money on these types of projects.
In the fourth quarter of 2008, America was entering a recession that had affected almost every business in the country. This Company was no different. The Owner knew that he had to down size the Company to weather the storm. His first decision was to close the service department and reduce his overall staff. Contracts in place and the number of bids that he was completing would not support the staff that he had in place. Almost overnight the Company went from 26 employees to 10.

For the next four years, revenues dropped to all-time lows of approximately $1.5 million. As the economy started to recover, The Company was bidding remodeling projects both for commercial and residential contractors. With the lack of qualified journeyman, the Owner had to assign his service tech to remodeling projects.
Since the recovery, the business has grown to over $2.7 million in revenue with continued growth projected for 2019. The Owners have built a strong foundation for a new Owner to take the business to the next level.

Attached Documents


Detailed Information

Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
6,273
Lease Expiration:
N/A
Employees:
13
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The business is in a Class C warehouse space with leased space totaling approximately 6,273 square feet. The office is approximately 513 square feet with 5,760 square feet of warehouse space. The Owner is on a month to month agreement.
Growth & Expansion:
The Company has no current marketing strategy in place. The Company has relied on their reputation, repeat contractor business and word of mouth to grow the sales. The outlook in the industry is strong. A new Owner with more energy could increase the infrastructure and bid more projects to grow the business.
Financing:
Small Second depending on qualified buyer
Support & Training:
Included in the purchase price is 45 days will be used to familiarize the new owner with the operation of the business, its policies, and its procedures. This will include relationships with suppliers and customers, ordering and purchasing methods, marketing orientation, and plans for the future.
Reason for Selling:
The Owner is at retirement age.
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Bill Billingsley

Business Listed By:
Bill Billingsley

The CBB Group

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