Long established plumbing contractor for sale in expanding Southeast Minnesota community. With work booked out for a year and a strong reputation to keep the customers coming, this business is poised to stay steady where it is or expand with new ownership. Company brings in 90% of its revenue from commercial accounts with the majority of work being new or remodel construction. Approximately 25% of revenues are service and repair clients.
Seller is prepared to help with a long-term transition plan to allow new owner to obtain another Master Plumber license. Current employees include one administrative person and five journeymen/apprentices. With steady demand and expansion in the local economy, the estimated $350,000 in assets included in the sale are poised to keep the company going strong.
The building the business occupies is owned by the seller. The seller is willing to lease or sell the real estate. The current location is sufficient for the operations of the business and has room for business expansion.
Growth opportunities abound for this company. The seemingly best route for growth would be new ownership vigor combined with increased staffing levels. With this combination a new owner could potentially double sales for current services offered. In addition to these sales, branching out to other forms of plumbing and heating not currently conducted and targeting residential customers, could bring in increased revenues.
The Plumbing industry includes contractors that install and maintain plumbing fixtures, fittings and equipment. Contractors in the industry hold specific licenses and qualifications to install, service and repair all types of pipes and drainage systems for the catchment and distribution of water, liquids, gases and waste products. The industry is one of many subcontracting industries essential to the residential and nonresidential building markets, as plumbers are needed to both install systems for new construction and to repair and maintain the systems of existing structures. Maintenance of existing equipment accounts for a significant share of revenue and is a stable source of revenue for the industry when construction markets fluctuate. Accordingly, amid an increase in construction activity over the five years to 2019, IBISWorld expects industry revenue to increase at an annualized rate of 1.7% to $109.6 billion, including a slight decline of 0.1% in 2019 alone. The expansion of the housing market, along with an increase in economic activity, caused new construction to grow early in the five-year period to 2019. Since the industry's performance is so closely linked to building markets and consumer spending, which determines the extent to which households renovate kitchens and bathrooms, demand for plumbing contractors increased. Nonresidential building construction activity also increased as consumer spending and corporate profit caused an expansion in the business sector. Reflecting the improving health of construction markets, the value of residential construction increased at an annualized rate of 3.9% over the five years to 2019. Amid an increase in demand for services and relatively lower purchase costs as a share of revenue, industry profit, measured as earnings before interest and taxes, is expected to increase to 5.6% of revenue over the five years to 2019. Over the five years to 2024, continued accelerated growth of downstream construction markets and expanding economic activity are forecast to support positive industry performance. The residential construction market is anticipated to strengthen, resulting in increased demand for industry services during the coming five-year period. Moreover, commercial construction is also anticipated to grow as rising consumer spending encourages businesses to expand their facilities. As a result, industry revenue is expected to rise at an annualized rate of 1.4% over the next five years, reaching $117.7 billion in 2024.- IBIS World
Owner wishes to retire.
Will train for 2 weeks @ no cost. Current owner holds a Master Plumbing license. New owner will need to find a new person to hold the Master Plumber license within an agreed upon period of time. Owner's current duties include bidding, material ordering, job scheduling, advising on plumbing matters and quality control.