THE Business for Sale Marketplace

KEYWORDS: Our client is successfully operating a Plumbing and HVAC company that provides service and replacement via nationally recognized franchise systems. In addition, plumbing repair, service and installation is provided for new installations. The target market is primarily residential, with commercial being only 20% of revenue. The business is well established for 20+ years with an excellent reputation and has weathered several cycles in the construction industry over the years. In recent years, the company acquired franchise rights, which has shown tremendous upside potential in the past year. As a matter of fact, sales in the first quarter ’09 are ahead of schedule. Nevertheless, the company had experienced a slight decline in revenue due to the overall economic activity in the past two years, but seller’s discretionary cash flow remains strong. The business is attractively priced, and a buyer can recoup his initial cash outlay of only $350,000 in less than a year. Free cash flow (after debt service/ acquisition) is approximately $500,000, with significant upside potential. The business is pre-qualified on an SBA lending basis, there is little bank debt to be assumed at $200k; and the assumption of $280,000 A/P is significantly offset by A/R of $185,000 (all current). A buyer will obtain a return on down payment of 140%, on an after-debt service basis! The owner is motivated to make this an easy transfer and will assist a buyer in all aspects of the transfer. However, while the owner is selling, he could also envision a partnership with a qualified buyer. The long-term, loyal employee base will stay with the business and will ensure the continued growth. *** ALL DATA IS BASED ON SIGNED TAX RETURNS***

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