Plumbing Contractor/Fuel Oil Delivery-Eastern LI (RE Included)
Plumbing Contractor/Fuel Oil Delivery-Eastern LI (RE Included)
Price: $3,700,000
Location: Suffolk County, NY
Industry: Utilities
Listing ID: RaptID_5585
This long-established, profitable family business is only being sold to accommodate retirement and estate planning. Sales in 2021 rebounded from a slight pandemic dip to pre-pandemic levels. The sellers own the RE and the deal also includes the property. Supporting the asking price, an SBA lender has indicated that financing of up to $3.5MM could be available to a qualified buyer!
One of the partners who is willing to remain on-staff is a licensed Master Plumber, helping new ownership to manage the business and also assure customer retention.
The firm is a fully licensed and insured, full-service plumbing and heating corporation, that provides a variety of services, from fuel oil delivery to installations, replacements and everything in between. Presently, the firm has 750 oil delivery accounts, with about 538 service contracts. Historically, the firm has a database of over 3,000 plumbing service customers that the providing both service (~65%) & new installation (~35%) work.
Total Sales: $4,100,000
Cash Flow: N/A
EBITDA: $467,000
FFE Included: Yes
FFE: $200,000
Reason For Sale:
Estate Planning/Retirement
Training & Support:
Owners will remain for sufficient period to transtion business. Two of the existing owners are willing to work on a full-time basis at a reasonable compensation.
Year Established: 1983
Employees: 11
Type of Location: Owned Real Estate
Square Footage: 5000 sq.f
Facilities Information:
The Real Estate included with the sale contains two one-story buildings, a garage, a 15,000-gallon fuel oil tank and a fully licensed truck tank fill structure. The property is irregularly shaped and is approximately one-acre. The company has 12 vans & two (2) 3,000 gallon oil delivery trucks. The main building housing the showroom, offices and plumbing inventory is an approximately 2,500 one-story stucco building. The truck tank fill structure was built in 1985 to Suffolk County standards and is inspected every two years. The structure is a steel frame, with a fire treated, wood roof and has five fire extinguishers. A storage building and garage is located adjacent to the truck tank fill area. There is adequate room on the property for van parking and storage.
Competition:
The closest plumbing contractors are smaller firms which are not in the fuel oil business.Neither is considered serious competition by the owners. Fuel Oil suppliers in the region are mostly “cash & carry” suppliers and the firm's ability to provide plumbing services and fuel oil delivery is considered an advantage.
Potential Growth:
The firm presently focuses on providing services to a local area on LI. The Long Island population is growing and there is opportunities to grow the business in neighboring towns. One of their concerns has been limiting transportation costs. It would be reasonable to establish low-cost “satellite” sites to enlarge the market area and manage transportation costs. Additionally, the inclusion of additional HVAC services and propane supply would be natural markets to their existing customer base.
Financing/Terms:
SBA lender has reviewed financials and indicated up to $3.5MM could be available to qualified buyer.
For more information on this listing, please complete our Non-Disclosure Agreement
