Summary: 
With over $400,000 in assets, this company serviced over 650 accounts last year!
Business Type: 
other service
Business Type: 
service
Location: 
Nebraska
Price: 
$750,000
Sales Revenue: 
$728,872
Cash Flow: 
$251,971
Realestate Included: 
No
Inventory: 
$107,000
Employees: 
9
Internal Listing:: 
OBL003

Description
With over $400,000 in assets, this company serviced over 650 accounts last year and has an excellent reputation for getting the job done on time! This business specializes in water damage clean up, carpet cleaning, duct cleaning and mold remediation. The business serves residential and commercial clients and has a very strong repeat customer base. The staff of 9 is reliable, well-trained and fully certified; five employees are serviced-based while four are office staff. All cleaning and office equipment is up-to-date and in excellent condition.

The business is well-managed and profitable yet there are still many opportunities for growth. The company has nearly 20 years and a number of satisfied customers many of which are repeat customers. Services provided include water damage (more than 50%), are duct cleaning and mold removal. This is a turn-key operation with the sellers willing to provide training and support.

With a bank loan for 80% of the purchase price, a buyer would have a Net Operating Income of $153,609 in the first year. With a down payment of $75,000 (10% of purchase price) the ROI would be more than double for an incoming Buyer.

Financial Overview
List Price: $750,000
Gross Sales
2014: $728,872
Owner Profit/Cash Flow
2014: $251,971
Profit Margin: 37.5%
Multiple: 2.98 (multiples range from 1 to 5, average being 3)
Valuation: 2014 Cash Flow x Multiple = Price
$251,971 x 2.98 = $750,874

Assets Included in Purchase: $407,000
Equipment and Vehicles: $300,000 total, inclusive of $144,055 in vehicles (4 vans, 3 trailers) and 6 computers
Intangible Assets: Client list, well-known and recognized brand
Inventory: $107,000

*amounts may vary

Business Information
Year Established: 1998
Location and Service Area: Omaha, Nebraska Metro Area
Number of Clients: 650/year (estimated); diversified customer base
Business Services: Water damage restoration, flood damage, sewer backup, carpet cleaning, air duct cleaning, drapery, upholstery, area rugs, mold remediation & more
Building: 8,000 square foot facility
Employees: 6 FT, 3 PT (5 employees are service-based, 4 office staff)
Transition: Seller will provide training and will remain on a part-time basis to continually support incoming buyer if desired
Major Income Sources: Water damage (more than 50%), air duct cleaning, mold removal
Growth Opportunities: Many; will be discussed under confidentiality

Funding Example
Purchase Price: $750,000
10% Buyer Down Payment: $75,000
10% Seller Financing: $75,000
80% Bank Loan: $600,000

Bank loan can be partially collateralized by the existing equipment and inventory.

In the above example, after loan payment the Buyer’s net operating income would be $153,609 in the first year and would receive a 204.81% return on their initial 10% investment of $75,000.

Next Steps
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.

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