Location: Silicon Valley Area of San Francisco Bay Area
Industry: Construction Contracting & Maintenance
Listing ID: 8396
Summary: Piping contractor installs pipe systems and does plumbing work in commercial buildings, including sanitary drains, water supply, process piping and similar jobs. It also has a small HVAC maintenance division that does simple maintenance worl. Examples are cleaning coils, replacing filters, minor mechanical repairs, piping repairs, etc. The company does not install fire sprinkler systems. It works on small- to medium-size jobs with a typical job size of $50,000 to $100,000. Therefore, this minimizes risk and helps smooth cash flow for the owner.
Organization: The company is well organized with 24 full-time employees. There are experienced pipe fitters and job superintendents, estimator, purchasing agent, billing and paying clerks, and admin people. The owner does business development, sales, walks the jobs, guards the profit margins and oversees the company. The owner is not a pipe fitter or plumber, but considers his primary skill to be business development. The company is a California C corporation with two shareholders: the president and a silent partner.
Facilities: The company leases a centrally located office/warehouse property. Office workers use the front offices; small tools and equipment are stored in the back. It is located in the Silicon Valley area of the San Francisco Bay Area where commercial real estate construction is booming. It has a fleet of trucks which mostly go home with employees.
Business Development: The company maintains relationships with general contractors who subcontract work to the company. There are many more available if a new owner chooses to grow the business. The company also has a number of direct customers for whom it does new construction, remodeling and maintenance work. The company has been in business over 20 years and has an excellent reputation.
Financial Summary: Revenues for 2016 were $4.992,974 with Sellers Discretionary Earnings of $808,631. The owner is selling to gradually move out of the area for a more relaxed pace of life. He is willing to stay on as operations manager, doing most of the work he presently does for a year for the industry standard compensation. He is also willing to be Responsible Managing Employee if the buyer does not have a contractor’s license. The owners are asking $1.8 million excluding cash, receivables, deposits and liabilities. Business will be delivered free and clear to facilitate financing. Owners may carry a note for a portion of the purchase price but won’t be the primary source of financing.
Down Payment: $450,000
Total Sales: $4,992,974
Cash Flow: $808,631
FFE: $200,000 (Included in Price)
Terms and Conditions?:
25% down, SBA + Seller Note
Reason For Sale:
Training & Support:
4 weeks 20 hours a week. Also willing to work as Operations Manager for up to one year and be Responsible Managing Employee for the contractor's license.
Year Established: 1997
Year of Last Acquisition: 1997
Days & Hours of Operation: Monday-Friday 7:00 AM to 3:30 PM
Owner Hours Per Week: 40
Non-Owner Payroll: $91,826
Employees: 24 Full-time
Security on Lease: 2758
Monthly Rent: 2758
Type of Location: Leased
Square Footage: 2450
Leased office warehouse near intersection of two major freeways in the heart of Silicon Valley.
Owner founded in 1997.
Business management, marketing & sales, estimating, contracting, supervision of employees, understand financial statements, cash management.
Only a few similar companies in the area.
The market is large and the metro area has 90 cities & 7 million population. The company only covers a fraction of the San Francisco Bay Area presently, so there is room to grow.
25% down, SBA 65%, Seller Note 10%