Hawaii Licensed Plumbing Contractor

HAWAII LICENSED PLUMBING CONTRACTOR

SDE

$404,000

Revenue

$1,483,000

Asking Price

$690,000

Tangible Asset's

$20,000

Our client is a full-service, growing and very profitable licensed plumbing contractor who has been satisfying customers in Hawaii since 1992, and who now wants to retire. They are engaged in plumbing, solar & gas piping installation and primarily work in the construction of new custom-built homes and in light commercial construction.

About 89% of their current work has been for new residential construction and the balance is for light commercial work like restaurants, salons and warehouses, etc. They do not do plumbing service work, which would be a growth opportunity for a buyer.

Strong Backlog. As of June 2024, they had 37 projects with 16 customers with a total revenue value of $2.2 million, of which $1.3 million was still in progress.

The business is being offered for sale on a fully turnkey basis with all the needed assets, a strong operating team, the assignment of their lease, a five-year non-compete agreement from the owner and hands-on training for the buyer. Please contact us for a detailed, tax-return based, Confidential Business Profile.

SBA Loan. This business has been pre-qualified for an SBA loan for a qualified buyer, with a down payment of 10% ($85,000), and a 10-year loan term.

Executive Summary

Listing ID: HI Plumb
Location: Hawaii (Island confidential)
Type of Entity: Corporation
Years Established: 30+
Industry or Business Category: Residential and commercial plumbing contractor

Company

2023 Source: Tax Return

Revenue: $1,483,000

SDE: $404,000

Financial Summary

Asking Price: $850,000
Inventory included in the Price: $50,000
Tangible Assets (F,F&E): $20,000
Non-Compete: 5 years
Training: 2 weeks; 30 hrs./wk.
Sale Reason: Retirement

BUSINESS IS: Not Relocatable

Offering Summary

Status: Leased
Monthly Rent: $2,278.80 / month, plus GET (4.712%) and CAM; $27,348 per year; and $1.28 per sq. ft.
Sq. Ft.: Total land area 10,128 sq. ft.; 2 buildings sie 1,776 sq. ft.
Lease Expiration Date: May 2028 The leased facilities have a a large laydown area and two buildings, that are in a low-cost area and close to customers.

Location Details

Plumbing service operation.
Residential fire sprinkler service.

Expansion Opportunities

Employees

6 (excluding owner and wife)

Employees

Monday - Friday - 7:00 am to 3:30 pm

Trading Day/Hours

State of Hawaii Plumbing Contractor’s license.

Licensing Requirements

Growing and profitable industry driven by the need to build more houses in Hawaii. In business since 1992, and they have become a well-known and preferred supplier to their market, they have consistently high customer reviews and a growing market share.
Loyal Customer Base: A buyer will benefit from the Company’s long tenured and dedicated relationships with their customers who appreciate the Company’s high-quality products and services, and who trust and rely on these services, providing the Company with a steady stream of recurring revenue.
Year-Round Demand: Construction in Hawaii experiences a consistent demand for plumbing services throughout the year due to its great climate.
Recession-Resistant Market: The Hawaii construction market has proven to be generally recession-resistant as the population, both full time and seasonal, continues to grow.
Spirit of Aloha: Hawaii is known for its warm and welcoming Aloha spirit. As a business owner, you'll be embraced by the local community and benefit from the friendly and inclusive culture. One key to business success is to combine the Spirit of Aloha and a mainland work ethic.
Excellent and growing revenues, profits and cash flow:
- Revenue grew from $831,198 in 2018 to $1,482,000 in 2023
- 2023 Owner’s profits (SDE) of $404,000, 23.2% of revenue
Very low Lease cost of 2.3% of 2023 sales.
Attractively priced.
SBA Loan pre-qualified
Gulf Coast Small Business Lending, div of Gulf Coast Bank & Trust
Loan amount: up to $787,000
Loan Term; 10 years
Down Payment: 10%