Santa Clara County, CA Plumbing Businesses For Sale

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Very Profitable Non-Union Piping Contractor
$3,150,000 Cash Flow: $990,861
Very Profitable Non-Union Piping Contractor

San Jose, CA

Very profitable commercial piping contractor. Non-union, lots of well-established relationships with general contractors, architects and other referral sources. Owner is willing to stay as Operations & Business Development Manager up to two years and also be Responsible Managing Employee if the new owner does not have a contractor's license. Business is 80% new construction and 20% maintenance and refurbishing. New construction is usually as a sub to general contractor and typical project size is $50,000 to $75,000 although jobs in the hundreds of thousands are normal, too. Company avoids $1 million + jobs due to working capital requirements. This company is larger than most competitors so only a few others can usually bid on the jobs that the company does. Company has a great team including estimators, job superintendents, plumbers, bookkeeping & admin, purchasing agent and a variety of skilled workers. Owner's primary job is general management oversight, financial management, business development, hiring, etc. Owner works 40 hours a week on average. Owner would like to work up to two years for the new owner as Operations/Business Development Manager at the standard compensation rate in the industry. In Fall, 2017, the company became one of only two plumbing contractors to work for a global tech company that owns billions of dollars of commercial real estate in the Silicon Valley area to do their building plumbing maintenance and remodeling. This customer alone is expected to do $1 million to $1.5 million revenues in 2018. The company has demonstrated strong growth since the recession, and is expected to grow from $6.2 million revenues with $990K SDE in 2017 to $7.0 million revenues and $1.1 million SDE in 2018. This business is available to purchase for $1.8 million plus Net Current Items (Current Assets minus Current Liabiities) which was $1,350,000 at year end. This consisted of $250,000 cash, $1,500,000 of Accounts Receivable and $400,000 of Current Liabilities. The total project investment would be $1.8 million + $1.35 million = $3.15 million. SBA financing is available with 15% down, 10% seller carry and 75% SBA financing. Total project investment is to be adjusted for actual Net Current Items at closing.

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