(Orange County) (Relocatable)
Cash Flow: $509,482
Gross Revenue: $2,483,263
Lease Rate: $6,386 /Month
This premium, well-run Plumbing Company serves all of Orange County for all plumbing repairs, remodeling, and general contracting. The Company has commercial and residential customers all over the O.C. area, however, 60%--70% of their work is in Newport Beach and Irvine which are known as the two most affluent cities in Orange County.
The Company was established 20 years ago by the Owner with one truck and a good set of tools. Within the past ten years the gross revenue has more than doubled. They now have 13 honest and dependable employees, 10 trucks, and a full set of solid equipment for any job. The Owner does minimal advertising and attributes this growth to good service, fair dealings, and the word-of-mouth recommendations of satisfied customers.
The Company has a great reputation and that's why they do so well financially. They only do the repairs that are necessary and their policy is to give the customers alternatives to the needed repairs if the customer wants to hold off for a while. To insure fair dealings, all of the Company's employees are paid hourly instead of being paid commissions in order to circumvent the temptation to suggest unnecessary work.
The customer base is approximately 60% commercial and 40% residential. They provide regular service to over 100 big local companies, many of which are nationally recognized names. The Company services all of Orange County and occasionally will travel to other locations in Southern CA for their big customers. All of the trucks look professional, contemporary, and very clean. The fair market value of the trucks is $203,000 and the fair value of the equipment is estimated at $128,925.
The Company is also a Certified Backflow Tester. The Owner estimates he makes over $300,000 per year just from the Backflow program alone. This is a situation where a $45 -$50 test turns into a $ll,000 job.
This financially successful Company brings peace of mind to operate. The Owner has plenty of free time for holidays and other events. On an average week he works about 40 hours. He is agreeable stay on for a month or two at no charge to help you get up and running.
Inventory: Included in asking price
Real Estate: Leased
Building SF: 5,258
Lease Expiration: 6/20/2020
Furniture, Fixtures, and Equipment (FF&E): Included in asking price
Facilities: The facility is freeway-close and comprised of 3 offices and a warehouse. All vehicles are parked indoors. Plenty of room to store equipment and inventory.
Competition: The Company competes well with other large plumbing companies because they do excellent work, are fair to the customers and do not create unnecessary extra work.
Growth and Expansion: The size of the Company has doubled within the past 10 years. The Owner believes this growth is due to good work and honest and fair business practices.
Support and Training: The Owner will train a minimum of 30 days with the possibility of 60 days.
Reason for Selling: Retiring.