Plumbing Business For Sale:

Listing Number:	sts-plum0518051
Location:	North Texas / Dallas Fort Worth
Contact Info	Phone: , or Email Us

CONFIDENTIALITY
For reasons of confidentiality, further information, other than the information presented this page, will be provided only after a Confidentiality Agreement located here is completed, signed, dated, and faxed to (509) 695-2752.

Residential Plumbing Business for Sale
The company is a residential contracting plumbing serving the Dallas Fort Worth area. It's primary focus in single family residential development.

Workload and Book of Contracts Pending
The company is currently completing about 100 phases per month (3 phases per house; rough-in, top-out, set fixtures). The run-rate for 2005 completed phases is approximately 1,200. This represents about 400 completed homes in 2005. Current backlog of starts to be commenced and completed over the next 3 years are approximately 2,850 (950 homes). Because of the company's reputation for quality and dependability, it has more work available than the current owner has chosen to pursue. 

Growth Opportunities
The company is well-established in the residential plumbing marketplace. It's primary focus on plumbing contracting provides a natural opportunity for growth into the service arena. In fact, the company's list of over 2,000 homes completed over the past several years is a untapped opportunity with which to begin the development of a service branch of the company. Put simply, the homes in which the company builds plumbing systems are a great asset for future plumbing services work.

In addition to providing plumbing service work, the company's expertise in plumbing contracting and a commitment to expand it's existing strong operations would be a likely attainable goal. The company's marketplace is rich with home building companies who are always in need of dependable, reputable, and quality-oriented plumbing companies.  The company currently enjoys a reputation with it's existing clients that is beyond reproach and, conseqquently, some of them have offered the company additional contracts (and this is without solicitation of the additional work!).

Another area of opportunity is in offering commercial plumbing contracting and service work... a very large area of opportunity that the company has not yet pursued.

After the "transition period" of the buyer's acquisition of the company, the above mentioned areas of growth could pursued and developed with additional manpower and supervisory expertise. Commercial specialists can be can be acquired to manage these growth areas.

Existing Marketing Efforts
The company has grown with virtually no marketing effort. This is an area that company resources could be invested which would most likely produced significant returns. Currently, the company relies upon referrals for new business. Face-to-face meetings with major builders results in new project work nearly every time. No yellow pages, direct mail, or telemarketing is used. More focus in this area would likely result in growth of the company.

Description of Staff:
This company's employees administer job assignments, oversee purchasing, warehouse stocking, dispensing of supplies and assure quality control throughout the operation.

Year established: In the late 1990's.

History of Revenues, Profitability
The economic downturn which resulted from Sept 11, 2001 which was felt throughout the US was also felt by this company. The difference however, is that it was not felt as soon and it the downturn was relatively short. Research will show you that this was very characteristic of all of the MEP industries. A very noteworthy reason for this is because the industry, for the most part, is contract-based and the momentum of larger development projects contracted prior to (or during the beginning of the downturn) provided a continued flow of work which was not noticeably affected until 2004. See the following:

2002 Revenue - $2,412,000
2003 Revenue - $2,741,000
2004 Revenue - $2,413,000
2005 Revenue - first 9 months was $2,476,000 (annualized run-rate of $3,300,000)

Revenues for this company continued to climb until 2004 when there was an abnormal lapse in overlapping contracts. Put simply, there was about a 3 month period when several specific contracts almost simultaneously completed just weeks before additional long-term workload contracts (which provide literally hundreds of homes to be plumbed) were started and "ramped up". A close investigation of this will show that this kind of occurrence is uncharacteristic and abnormal. In fact, it is typical that several long-term contracts continually overlap each other. The company is currently enjoying several longer-term workloads of literally hundreds of homes in many various subdivisions. The company's book of work in progress (to be performed and completed over the next approx 3 years) is approximately  $7,000,000. This figure does not include additional subdivisions which have been offered by building companies to this plumbing company.

It is important to understand the strong "flow" of work available to this company. It is also important to understand that this workflow is not being generated through marketing efforts. One can logically deduct that an even stronger flow of work could be generated through marketing efforts and business development with additional building companies.

Reason for Selling:
Possible early retirement, convert equity to cash, other business opportunities.

Time owner is willing to remain after the sale:
Negotiable.

Additional Information about this business:
If you are interested in a possible purchase of this company, you should still register as a buyer to provide us with your contact information so that we can provide send you information about this company or others like it that make interest you.