OFF-MARKET- High Net Los Angeles Plumbing Company!

Agent: Terie Salinas

$2,500,000$2,500,000

Adjusted Net: 800,000

Description

OFF-MARKET PRESENTLY

Los Angeles Plumbing Company For Sale!
High Net Los Angeles Plumbing Co. – Wide Range Sophisticated Services
Los Angeles, California

Ready for a Huge Business Opportunity in the Plumbing Business? As you know, large scale turnkey plumbing & home services enterprises, rarely come onto the market but a job opportunity for the Seller has come up that is too good to pass up, hence the sale!

Business Overview:

High Net Los Angeles Plumbing Company

The Company is a hybrid (generalist and specialist) 24/7 plumbing organization that places service and expertise first and prides itself on having superior customer satisfaction across the entire service cycle.

2.5MM gross, $850k Adj. Net based on YTD top line and net income #’s….!

Since the founding of the Company there has been a consistent commitment from a top down approach to customer service. From the initial inbound phone call the focus has been and continues to be maximizing the customer experience.

The Seller has stressed time and again that an acquirer should never lose that approach if they are to maintain the superior historical retention levels of the active/repeat client base and superior online review/exchange portals.

Industry Overview:

Demand for plumbing services is projected to continue growing over the five years to 2022. IBISWorld expects the Plumbers industry to benefit from accelerating downstream building markets in both the residential and commercial sectors. Expanding investments into residential and nonresidential construction, along with higher per capita disposable income allowing consumers to trade up to newer plumbing technologies (including eco-friendly and Energy Star-certified products), are projected to benefit industry operators.

With such favorable demand conditions, IBISWorld anticipates that industry revenue will grow at an annualized rate of 2.9% to $118.3 billion over the next five years to 2022.

Industry Trends:

The residential market is anticipated to grow at a slow pace throughout this period, returning close to its prerecessionary levels. In the five years to 2022, the value of residential construction is expected to increase at an annualized rate of 0.8%. Pent-up demand for new houses will spill into the market over the next few years, fueling housing starts, which are projected to increase at an annualized rate of 3.8% over the same five-year period.

A vibrant housing market will particularly benefit small-scale plumbers that rely on subcontractor work for projects of relatively small size, such as home construction and residential repair work. In particular, a market that looks promising for industry maintenance and repair services is the multifamily residential market, consisting of condominiums and rental units, where contracts with property managers can also guarantee regular work.

Opportunities:

Demand from the nonresidential sector is forecast to grow at a slightly slower rate, but will still demonstrate healthy growth. Growing consumer spending, anchored by rising incomes and falling unemployment, will encourage many businesses to expand. As corporate profit continues to rise, growth in nonresidential construction is forecast to accelerate; as a result, the value of private nonresidential construction is projected to increase at an annualized rate of 4.1% over the five years to 2022.

This is primarily the result of companies having a surplus of cash that can be used to reinvest in their business by expanding their operations. As businesses increase their capacity, they will increase their demand for plumbing installation services. In tandem, plumbers will also be called on to fill long-term maintenance contracts and renovate existing structures’ plumbing systems to reflect the increasingly eco-friendly priorities of the business world.

(sourced: Plumbers in the US October 2017 )