B2B Plumbing Contractor

Phoenix, AZ

Seller Financing Available

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Sale Pending
Gross Revenue:$17,000,000
Rent:$90,000/Year
FF&E:$450,000
Inventory:$100,000
EBITDA:$3,100,000
Established Year:2005
BUSINESS DESCRIPTION

This is one of the greater Phoenix area’s premier B2B plumbing contractors. The business is focused on new construction which represents approximately 70% - 80% of top line revenue and 20% - 30% tenant improvements. Most of their clients are medium to large general contractors who are both well established, well known and many are considered “repeat” clients. Current and prior project types include assisted living facilities, restaurants, automotive, carwashes, schools, medical / dental facilities, retail of all types and distribution / warehouse facilities.
With their “dual” commercial / residential CR37 plumbing license they can perform installation and alteration of all piping fixtures related to water (chilling / heating), natural gas, sewer, septic, compressed air, vacuum and pressure vessels / tanks and more. Recent projects included services such as natural gas piping, domestic water piping, sanitary drains, waste & vent systems, plumbing fixtures, roof drains, pneumatic air piping, condensation drains, chilled evaporation systems, floor sinks, floor drains, grease interceptors, reclaimed water systems, pressure boosting systems, hot water recirculation, soft water & Pex systems and installation and connection to fixtures, faucets & accessories. Plumbing is generally broken down into three major phases of work. The first phase is underground plumbing, where drain lines are installed. The second phase is rough-in and overhead, where all the plumbing in the walls and ceilings are installed. The third and final phase is trim, where fixtures are installed, such as water closets, lavatories, and water heaters, etc. After providing the new construction service, they also have a service division that handles warranty work and service calls. The vast majority of their projects are in the Phoenix metro area with some projects in the Tucson metro area.


DETAILED INFORMATION
Location
Phoenix, AZ
Inventory
Included in asking price
Real Estate
Leased
Building SF
3,000
Lease Expiration
31/12/2030
Employees
45
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
The facility is located in Phoenix metro area; gross lease with rate of $90,000. The property is single-story warehouse, approx. 3,000 square feet on a flat lot of 10,364 square feet, appropriately zoned M-1, concrete block construction and built in 1993. The company is comfortable with the buildings current capacity and there is a little room to expand
Competition
There are several similar C-37 plumbing companies in the valley. Most plumbing companies in the state have less than 20 employees and this company is mid-size with 42 employees. Larger projects require the mid-size or larger companies to perform their work. The company competes with the service they provide; however, pricing is also competitive. Part of that service is “customer service” and it is a lost art.
Growth & Expansion
The company historically and currently does very little marketing from a traditional sense and chooses to focus on word of mouth and excellent customer service. All of their aggressive growth has come through this effort. They do have a simple and informative website. Future marketing considerations might be trade shows, social media and a more active approach to networking with general contractors. A fulltime salesperson should also be a consideration as the company estimator spends a small amount of his time on sales efforts.
Financing
Seller will carry a small portion of the purchase price to qualified buyers. Terms &
Support & Training
Sellers recognize that both customers and staff must be transferred to buyer thoughtfully and at the proper pace for all concerned. Seller is flexible regarding the familiarization period to provide thorough training of buyer and for smooth execution of the mutually agreed transition plan. Seller will include an agreed upon number of days of familiarization.
Reason for Selling
Retirement & Other Interests
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David
Long
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David Long