Business Overview:
The business is a California-based manufacturer and distributor of plumbing and HVAC (heating, ventilation and air conditioning) supplies. The products are manufactured in China, and the company maintains an active inventory of 300 to 400 SKUs. The company caters to the wholesale market segment and maintains a customer base of approximately 300 customers. Products are distributed throughout the United States. and Canada. The company has inventory-stocking sales representatives in Texas, Massachusetts, and Colorado. Total revenue was posted at $2.31 million in 2010. Annual revenue growth is expected between 10 percent and 20 percent over the proforma period. In 2015, the company’s revenue is projected to reach nearly $4.7 million.
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Property Features and Assets:
The facility comprises 4,500 square feet and is leased from a third party. This facility is used for office and warehouse purposes.
Market Competition and Expansion:
Management is confident that significant growth can be achieved via increased marketing efforts, geographic expansion and the introduction of new products. The Company’s strong client relationships and reputation for high-quality products and services provide a firm foundation for the following growth opportunities
• Expansion of Products Offered – Management is planning on adding new products to its existing inventory. This will enable this company to offer a more complete line card, thus increasing the revenue growth. Plans for expanding the West Coast HVAC market are already underway. The company is also now working with a major supplier to boost its sales in the market for manufactured housing.
• Increasing Customer Base – The company’s sales team is actively seeking new customers. In addition, it intends to add new sales representatives and projects to capitalize on referrals from the existing customers.
• Geographic Market Expansion – The company is continuously expanding geographically to enter additional market segments both in U.S. and Canada. The company has already hired an experienced sales representative to focus on the excellent growth potential of the Texas market.
• Website Enhancements - Expansion of its marketing efforts will include website enhancements and closer ties with all its current and past customers. Management is also looking to expand its presence at key industry trade shows.
These growth opportunities will be supported by the Company’s reputation, quality products and strong customer relationships. This company has a long track record for providing excellent products that are backed by exceptional technical expertise and customer service. It has a dedicated team of highly trained, skilled professionals with extensive experience in their respective industries, which contributes to very high levels of repeat and referral business.
Reason for Selling:
Diversification of financial interest
Additional Details:
- The property is leased.
- The owner is not willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Resources: