Water Filtration Systems Provider & Installation Business

Consistent 4-Year Average $257,771K in Sales, $98,903K in SDE

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Specifications

 Price:
$290,000
Revenue:
$257,771 (4-Year Avg
Cash Flow:
$98,903 (4-Year Avg)
Location:
Santa Cruz County
Service Area:
Santa Cruz, Monterey, Santa Clara, San Benito and San Mateo Counties
 Profit Margin:
39%
 Employees:
1 FTE, 2 Owners
Reason for Sale:
Pursuing Other Interests
Goodwill:
17 Yr. Reputation
Year Established:  1998 when first originally opened.  2006 until present by current owners
Services:  Full-service water systems including filtration, softening, conditioning, etc.
FF&E:  Value $55,200 included, (list to be provided).
Clientele:  Residential, Commercial, Industrial
Facility:  1300 square feet
Lease:  $1,504.00 per month
Personnel:  11 Full time employee, 1 Full time owner, 1 Part time owner (wife)
Software Used:  C55

Value Proposition

  • 25 years of Established Reputation
  • Priced Below Market for Quick Sale – Retirement
  • Strong continuing demand for products and service
  • Realistic potential for growth and expansion
Profit margin Chart

Revenue Breakdown

Revenue by Service Chart
Revenue by Customer Chart

Financial Highlights

  • Listing Price $290,000, includes $9,000 in Inventory
  • Gross Sales in 2022 $291,007
  • Sellers Discretionary Earnings in 2022 $113,276
  • Average Profit Margin 39%
Sales Cash Flow Chart

Cashflow Analysis

Financial Table

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 2.93 x, below the market in favor of the buyer.

Funding Example

Purchase Price: $290,000

10% Buyer Down Payment

$58,000

Buyer’s Equity

90% Bank Loan

$232,000

10-Year-term at a rate of 6.50% = Monthly loan payment of $2,634

  • Cash Flow (SDE in 2022): $113,276
  • Annual Payment to Bank: $31,608
  • Net Profit (After Expenses and loan payment): $81,668
Return Box
Coverage Ratio Box

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.