The Company is an e-commerce retailer engaged in the sale of high-efficiency household electrical heating and ventilating appliances. The Company’s products include water heaters, water boilers, solar heaters and panels, plumbing supplies, and fans. The Company’s primary activity is internet sales to the residential construction and consumer sectors.
The Company’s customer base mainly consists of individual consumers, homeowners, and others purchasing heating and ventilation equipment at retail prices. In 2012, electrical heating products accounted for 55% of sales; repair parts, 20%; solar heating products, 15%; and ventilation products, 10%.
About the Business
Number of Employees:
12 Full, 2 Part
Company is organized as an S-Corporation headquartered in Vermont. The company operates out of two buildings, totaling 9,200 square feet, featuring 3,200 square feet of office space in one location, and 6,000 square feet of warehouse space in the other. The buildings are expected to provide ample capacity to accommodate substantial growth. Company employees totals 10 full-time and 2 part-time staff, in addition to the two principals.
Company’s customer base mainly consists of individual consumers, homeowners, and others purchasing heating and ventilation equipment at retail prices. In 2012, electrical heating products accounted for 55% of sales; repair parts, 20%; solar heating products, 15%; and ventilation products, 10%. Demand for efficient heating, cooling, and electrical systems for the home is primarily driven by residential housing construction and sales. Success in the industry is largely driven by customer service, product availability, and expertise. These are areas in which company has excelled for over 13 years, and contribute to strong referral business, positioning the Company well for growth and success.
Company currently markets itself predominantly via continuous personal networking and relationship-based marketing activities. This marketing approach, coupled with company’s excellent reputation, accounts for the fact that a material portion of revenue is derived from word-of-mouth referrals. The Company generally advertises solely on the internet, and most activity is derived from organic search hits on Google or Bing.
Growth & Expansion:
The growth in retail purchases online will be due in large part to new online buyers, not just increased buying by veteran online shoppers. The number of US households with internet access has grown to more than 80% of total households, and more than 90% of those households subscribe to a high-speed (broadband) internet service, according to Leichtman Research Group. Consumer interest in conserving resources has driven sales volume of ENERGY STAR appliances. ENERGY STAR, a voluntary EPA program for vendors and retailers, encourages the manufacture and sale of appliances that use less energy and water. ENERGY STAR appliances can be significantly more expensive than comparable products, although manufacturers are working to decrease price differentials.Strong reputations based on years of superior service allow retailers to serve generations of customers. Many appliance retailers are family-owned and -operated and have been in business for decades. A good reputation takes a long time to build, and provides small, independent retailers a competitive advantage over large retailers.The established business methodologies refined by company are expected to yield growth going forward. However, management cites a key opportunity to accelerate growth trends over the next few years. Expansion into physical stores to increase walk-in sales is an area where the company does not currently have a strong presence, and is an opportunity for growth. Already boasting the development and opening of stores during the historical period, management indicates that steeper growth for the business largely lies in accelerated investment in the company’s expansion efforts. This type of investment will facilitate the goal of increasing on-site revenues, as well as capturing the customer that needs a product immediately.
Owners would entertain remaining with new management during a reasonable transit
Management Will Remain through Transition: Company's employees will remain with the business through and beyond the transition period. Management will ensure a smooth transition by remaining with the Company through the process, as needed.
Cash Flow Comments:
Ad Detail Views:
Asking Price: Not Disclosed Gross Revenue: $3,000,000Cash Flow: Not DisclosedEBITDA: $2,000,000Inventory: $774,000 not included in asking priceFF&E: $100,000 included in asking priceReal Estate: Not Disclosed Share this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
E-Commerce Retailer of High Efficiency Houshold HVAC Appliances
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