PRICED AT ONLY: $3,500,000

CONFIDENTIAL SERVICE BUSINESS DEAL SUMMARY

FOR SALENOW

FOR SALENOW

Please be respectful by only sharing the information with trusted advisors, lenders, and/or business partners as needed to make a buying decision and destroying this

information when no longer in use.

Version: public 5921

EXTREMELY CONFIDENTIAL! This is not to be disclosed to any business employees, customers, clients, suppliers,

vendors, competitors, outsiders, etc.

PRICED AT ONLY: $3,500,000

1 | SERVICE BUSINESS DEAL SUMMARY

THANKSThe purpose of this confidential service business deal summary is to provide serious potential buyers with a basic overview of the business available for sale.It is impossible for this document to cover every aspect of the business sale. The goal is to give a buyer enough information to decide whether or not to progress onward to the next stage of the purchase process. Proof of funds will be required.

In this competitive market environment, recession-proof services businesses with strong historical financial performance will remain in high demand. Secure this opportunity with quick resolute action now!

George | Carol

[assistants]

702 | 277 | [email protected]

• Plumbing• HVAC• Electrical• Fire Protection• Leak Detection

Services OfferedREMEMBER: Please keep this information confidential, as it is not intended for the public - only serious service business buyers with funds ready to commit to a purchase. The information contained has not been verified by any independent outside auditor or third party. Buyer is solely responsible to verify information during due diligence review period with an accepted purchase agreement. Buyer encouraged to seek legal and accounting advice prior to purchasing this business. Any change made to any part of this summary without seller’s written approval is not valid. Information may change as needed due to ongoing busines operations. Seller reserves the right to reject interest or offers and terminate discus-sions or negotiations at anytime without prior notice to buyers. Seller has no ongoing obligations or legal commitments except as agreed upon in a definitive purchase agreement signed by both buyer and seller. All icons and images are used royalty free from public domain sources.

• Las Vegas• Henderson• Clark County• North Las Vegas• 24 / 7

CONFIDENTIAL PRIVATE INFO

PRICE$3,500,000

NAME ADDRESS

HOURS24/7

SALES$3,279,096

SALE MOTIVATIONOther business

YEAR EST11/2017

RENT$2,232

INCOME$1,411,004

TRAININGThirty days

EMPLOYEES14 FT W2

LICENSESC-1, C-2, C-21B

SNAPSHOTCONFIDENTIAL PRIVATE INFO


EMPLOYEES

OVERVIEW VEHICLES$1M+ CASH FLOW NET INCOME in 2020! Established plumbing & HVAC company with an-cillary electrical and other related services. Strong commerical (88%) customer base with some (12%) residential. Q1 2021 up 20% over Q1 2020!

All employees are W2 full time with experienced management staff in place, so buyer has option to be semi-absentee. Major clients include restau-rants, commercial shopping plazas, prominent property management companies and resorts. Serious seller has excellent accountant prepared business financial records ready for due diligence including 3 years of clean tax returns, P&Ls, balance sheets, detailed equipment lists, etc.

Fast growth covid-proof company has exceptional returns in the plumbing service space with expan-sion potential for continued future growth.

Job Pay Start DatePlumber $22 2020Plumber $25 2020Office $21 2020Plumber $15 2020Plumber $25 2018Office $18 2020Plumber $25 2019

Job Pay Start DatePlumber $14 2019HVAC $29 2019Office $15 2018Manager $45 2017HVAC $30 2018HVAC $35.5 2017Plumber $30 2018

2017 Chevy Express2017 Chevy Express

2013 Chevy Silverado2017 Chevy 4500HD2018 Chevy Express2017 Chevy Express2007 Ford Econoline2010 GMC Savana2010 GMC Savana

2002 Chevy Express2010 US Jetter2004 US Jetter

2013 Dump Trailer2017 Enclosed Trailer

2009 Tilt Trailer22’ Utility Trailer10’ Utility Trailer

BUSINESS NAME

BUSINESS TYPE

LOCATION

WEBSITE

EQUIPMENT

OWNER W2 SALARY

INVENTORY

REVENUE SPLIT

Plumbing Heating AC Service

Las Vegas, Nevada

$7,500

$482,000 (includes vehicles)

$274,400 in 2020

88% Commercial | 12% Residential



HIGHLIGHTS

IDEAL BUYERAnother existing service company looking to expand or gain a foothold in the booming Las Vegas market-place.

Ideal candidate has experience in the service industry coupled with strong business management skills.

OWNER DUTIESOffice work, supervising, some plumbing, etc. Seller’s wife does minimal business administration from home office.

Wife is paid by the business, but performs no essential duties and is easily replaced.

TRAINING30 days free training post closing from seller with 180 days of phone consul-tation for a smooth successful transi-tion of the business to new ownership. Seller has 17 years of experience in the construction services industry.

Client introductions will be made as part of the transition period.

OWNER HOURSRoughly 40 hours per week with W2 salary. Clients mostly interact with manager, not seller.

Wife works minimal hours from home office and is paid $15 per hour. She is listed with the 14 other employees and will NOT stay on after the sale of the business.


OWNERSHIPCONFIDENTIAL PRIVATE INFO

ADDRESS

RENT

TERMS

SIZE

$2,232 per month(as per 2020 tax return)

Seller owns real estate(NOT included in sale)

Approximately 200 sqft office + 1,000 sqft yard

No requirement to assume an onerous lease in an uncertain market. Buyer can fold this business into an existing operation with minimal disruption, or find suitable space at an affordable rate. This allows for maximum flexibilty in the sale.



LOCATION

Business Name (DBA):

Entity Name: Description: Full service plumbing, HVAC, electri-cal, and ancillary services to commercial (primary) and residential customer base

Operation Hours: 24/7 open 365 days per year

Organization: LLC in Nevada formed Jan 2015

Foundation:

Reason For Sale: Other business interests

Location: Real estate is owned and NOT included in sale. Buyer has option to take over mobile office space, move location to their own existing frame-work, or find another suitable convenient space. Seller is flexible. Tax return for 2020 shows rent expense of $26,784, which is reasonable for the marketplace.

Competition: Very few other similar businesses licensed for all 3 major services (plumbing, HVAC, and electrical) with strong financial performance.

Improvement Opportunities: More advertising and promotion to gain new customers, add more workers, increase types of services offered

Gross Sales in 2020: $2,861,696

Total Income to Owner in 2020: $1,156,787

Furniture Fixtures Equipment: $213,000 approx.

Vehicles: $269,000 approx.

Inventory: $7,500 included

Accounts Receivable: NOT included avg $180K

Large Accounts: Business is not dependent on any single customer. Largest individual customer accounts for 17% of gross sales in 2020.

Work In Progress (WIP): To be apportioned at closing with seller being compensated for men and materials and buyer completing outstanding jobs.

Advertising: Minimal with none under contract.

Accounting: Full time bookkeeper / accountant in place based in California. Cash basis using online app for reporting, invoicing & mobile app.

Existing Liabilities: All equipment is owned free and clear and included in the sale. Outstanding loans on 4-5 vehicles to be paid at closing.

Legal Actions: None

Contracts: Existing contracts in place with cus-tomers for maintenance.

Payment Terms: Net 30

Working Capital: Seller suggests $300,000 in place as cushion for large jobs, payroll, etc.

BACKGROUND ACCOUNTING

FINANCIAL

HISTORYPREMISES

DETAILSCONFIDENTIAL PRIVATE INFO



FINANCIALS


Seller Earnings Multiple

Gross Sales Multiple

EBITDA Multiple

FAIR MARKET Price Range

Industry Average

Business profit margin AFTER all EXPENSES are PAID

Business

2021 Q1

2021 Q1

2021 Q1

2021 Q1

2020 Q1

2020 Q1

2020 Q1

2020 Q1

2021 EST

2021 EST

2021 EST

2021 EST

Gross Sales

Net Income (before tax)

Officer Compensation

EBITDA

$819,774 $633,407 $3,279,096 $194,321 $118,621 $777,284

$2,008 $3,154 $8,032

$2,008 $3,154 $8,032

$57,600 $82,400 $230,400

$57,600 $82,400 $230,400

$70,021 $106,188 $280,084

$282,730 $94,557 $1,130,920

$282,730 $94,557 $1,130,920

$625,452 $514,785 $1,693,301

$10,413 $20,637 $41,652

$10,413 $20,637 $41,652

$352,751 $200,748 $1,411,004

$342,721 $416,708 $2,501,808

$295,151 $118,348 $1,180,604

$295,151 $118,348 $1,180,604

Net Income

Cost of Goods Sold

Interest

Interest


Expenses

EBITDA (sum of above)

Total Addbacks COGS 2020: 18.5%2021: 23.7%

2020: 40.4%2021: 43.0%

Gross Profit

Depreciation

Depreciation

Adjusted Earnings (SDE)

Profit Margin

Earnings

Gross Sales

EBITDA

Multiple

Multiple

Multiple

Price

Price

Price

FINANCIAL SYNOPSISDISCOUNTED PRICING STRATEGIES

$3,527,510 = 2.50 x $1,411,004

$3,607,005 = 110% x $3,279,096

$3,541,812 = 3.00 x $1,180,604

$3,527,510 to $3,607,005Priced $27,510 to $107,005 BELOW Market

8% MORE Profit Versus The Industry

43% 35%NOTES MARGINS

• 2021 has been off to a great start with subtaintial gains in both sales and income over 2020. 2021 EST is projected for full year based on first quarter.

• Pricing strategies have been discounted for projection. High quality financial paperwork and stable management in place.

[Figures from P&L]


HISTORICAL


Seller Earnings Multiple

Gross Sales Multiple

EBITDA Multiple

FAIR MARKET Price Range

Industry Average

Business profit margin AFTER all EXPENSES are PAID

Business

2020

2020

2020

2020

2019

2019

2019

2019

2018

2018

2018

2018

Gross Sales

Net Income (before tax)


EBITDA

$2,861,696 $2,894,095 $2,337,186$529,598 $652,100 $643,885

$10,339 $14,039 $14,865

$10,339 $14,039 $14,865

$274,400 $254,600 $191,800

$274,400 $254,600 $191 ,800

$309,658 $393,539 $359,924

$847,129 $212,055 $167,574

$847,129 $212,055 $167,574

$2,332,098 $2,241,995 $1,693,301

$24,919 $124,900 $153,259

$24,919 $124,900 $153,259

$1,156,787 $605,594 $527,498

$1,521,053 $2,029,940 $1,525,727

$882,387 $350,994 $335,698

$882,387 $350,994 $335,698

Net Income

Cost of Goods Sold

Interest

Interest


Expenses

EBITDA (sum of above)

Total Addbacks COGS 2020: 18.5% 2019: 22.5% 2018: 27.5%

2020: 40.4% 2019: 20.9% 2018: 22.6%

Gross Profit

Depreciation

Depreciation

Adjusted Earnings (SDE)

Profit Margin

Earnings

Gross Sales

EBITDA

Multiple

Multiple

Multiple

Price

Price

Price

FINANCIAL SYNOPSISPRICING STRATEGIES

$3,643,879 = 3.15 x $1,156,787

$3,720,205 = 130% x $2,861,696

$3,661,906 = 4.15 x $882,387

$3,643,785 to $3,720,205Priced $143,785 to $220,205 BELOW Market

5% MORE Profit Versus The Industry

40% 35%NOTES MARGINS

• In 2019 seller bought real estate for other business (garage) and refurbished premises. This is the reason for the higher expenses during this time.

• A small weighted premium (0.15) added to avg multiples for high quality financial paperwork and stable management in place.

[Figures from Tax Returns]

Aggressive below fair market value pricing for fast easy sale:

Sale will be structured for buyer to purchase assets only, as business LLC is not for sale. Seller will keep all cash and accounts recievable. Business has no debts and will be delivered free and clear to Buyer. There is no PPP or EIDL that was taken by owner or business.

Seller holds required licenses including C1 - Plumbing & Heating, C2 - Electrical, and C21B - Air Conditioning. Buyer must have these licenses or appoint a Quali-fied Individual (QI). Employees may meet experience requirements. See licensing department and nvcontractorsboard.com for more details.

Business is licensed for three major service industry trades. Full time manager in place giving Buyer option to be semi-absentee. Strong profit margins with recession-proof business model. Niche business customer base serving commerical property management sector. New customers with little to no advertising. Seller has extensive industry experience to share with Buyer!

$3,500,000• Turn Key Operation• $213,000 in Furniture, Fix-

tures, Equipment (FF&E)• $269,000 in Vehicles• $7,500 Inventory• Trade Name & Goodwill• Lease Flexibility• Customer Database• Phone Number• Website & Social Media• Non-Compete From Seller• Industry Experience• Seller Training For 30 Days

COMPETITIVE ADVANTAGES

TYPE OF SALE

LICENSING


PRICE



FUNDING


CASH SBA SELLERPREFERED BY SELLER TIME AND DOCUMENTS EXTRA LEVERAGE

$3,500,000 $4,661,915 $3,676,865

• Fast closing

• Simple ownership transition

• Escrow closing

• Lowest overall price option

• Discounted price

• Slowest closing• Extensive paperwork• Licensing considerations• Escrow closing• Lowest cash (25%) option• Business account at B of A• 10 year term at 7% interest• 75% loan is $2,700,000• $31,349.29 monthly payment

• Fast closing• Minimal paperwork• Escrow closing• $3M down payment• Personally guaranteed• 3 year term at 8% interest• $600,000 seller carry note• $18,802.82 monthly payment• $76,865 interest paid

Total paid Total paid including $900K down and $1M+ in interest for debt service

Total paid including interest

Energized by this Deal Summary and ready to move forward to the next step? Here is how the process continues ending with the sale. During the next phase of the journey, you can deep dive into the business with the seller. This next step is crucial to determine if this business is the right fit to suit your needs and requirements. Proof of funds is required before embarking on this next chapter.

MILE 1Check: You have reviewed this Deal Summary and are ready to forge onward.

MILE 2 MILE 4 MILE 6Gather: Provide proof of funds to set up a call or meeting with the seller for

further evaluation.

Deposit: After the offer is accepted, you deposit the earnest money with a local

escrow company.

Closing: After all contingen-cies are met, escrow closes and you reap the rewards of

owning the business.

MILE 3 MILE 5Offer: Submit an offer for the business. The seller has a purchase agreement

available, if needed.

Review: During the due diligence period, you will verify all of the business information and financials.



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