Buy a Business

This 60-year-old Family Business has been run by the 2nd generation for the Last 30 years and they are ready to retire. The Owners will stay with a new owner for a few months. In the last few years the Company has slowed down and has gone from average annual Sales of $500,000 to less than $400,000. They have one “Route Sales” truck on the road servicing about 1,000 Commercial Customers. Most of their volume takes place in their 3,000 sq. ft. shop, one of the Largest Fire Extinguisher shops in the Market area. They own the Building they are in, and the New Owner needs to Buy the Building at an appraised value of a little over $300,000. The Property side of this will prove to be a great Real Estate Investment. A new owner will want to use half the space for better Profit Centers that will more than pay for the cost of purchasing the Business & Property.

One of the Great values of this Business is the 60 years of Building a fantastic foundation that will allow the New Owner to go to a much higher Level. The New Owner will have no Problem taking this Business to a much higher level. You will be expected to do $1 million in sales the first 12 months of the Business. Let me tell you about their 6 existing “Profit Centers” & the 8 Profit Centers you should add to this Business.

THEY HAVE A GOOD “WALK IN” BUSINESS, ABOUT 60% OF THEIR VOLUME IS LOCAL BUSINESSES THAT BRING THEIR FIRE EXTINGUISHERS INTO THEIR SHOP FOR, Inspections, refilling & hydo testing. The sale of New Fire Extinguishers is a small part of their Business, and should be one of their Largest Profit Centers. A big part of their Business is doing the shop work for the smaller Fire Extinguisher Businesses that do not want the expense of owning their own shop. They now have 6 or more Fire Extinguisher Companies that use their shop. That is about $90,000 of their current volume. The New owner will want to add being a Master Wholesale Distributor of Fire Extinguishers. These 6 plus Distributors now doing Business with the seller should grow to over 20 Local Distributors, and you should provide them with all their new Inventory. Dennis Riley the Broker handling this Listing was the owner of Beltway Fire Equipment, one of the largest in this Market area. He was doing $3.4 Million in sales with 17 “Route Sales” people on the Road serving 21,000 customers. Dennis wants to work with the New Owner and show them where all the growth opportunities exist.

ONE OF YOUR NEW PROFIT CENTERS WILL BE SELLING FIRE EXTINGUISHERS TO BUILDERS, CONTRACTORS & PROPERTY MANAGEMENT COMPANIES. When you sell Fire Extinguishers to Fire Extinguisher Distributors, you have about a 30% mark-up, when you SELL to Contractors they pay about a 50% mark-up and your larger volume of Retail Sales is about 110% mark-up and is a real Profitable.

WE WOULD LIKE TO SEE THE NEW OWNER GO INTO THE ALARM-SECURITY & FIRE ALARM BUSINESS. The “Route Sales” Fire Extinguisher Inspectors are very good at finding leads for the Alarm sales People. When they go in 10 to 12 Businesses every day, they tell the Business Owner, “We are doing your Fire Extinguishers inspections, can we have our Alarm People, come talk to you about our many other Life Safety Services, such as Video, Access Control, Fire Alarm Inspections, monitoring your Fire Sprinklers,and doing the required Water Back Flow Testing. We like to see Life Safety Businesses grow till they are handling about 18 of the 50 Plus “Profit Centers” used collectively by the Life Safety Industries. If you would like to see a List of these Profit Centers please go to one of my Web Sites www.LifeSafetyAssociation.org and hit Button “Profit Centers.

WITH THIS BUSINESS YOU ARE GETTING 3 TRUCKS, AND ABOUT $100,000 OF CAPITAL EQUIPMENT. You will be getting a large # of used “Reconditioned- Hydro tested” Fire Extinguishers, there are several good markets for used Fire Extinguishers. The Contractors like to use the “Reconditioned” Extinguishers for their job sites, and we sell them new ones for the Completed Buildings. There is a 2nd truck equipped and ready to go on the road. The 3rd truck is a larger box van that is used for larger deliveries. This Business is for sale with the Property for $695,000.

Please call Dennis Riley for more information and answers to your questions. You will need to sign a Confidentiality Agreement to get the name, location and financial info.

Dennis Riley cell 240-462-8220 - office 410-326-2187 -- dennis@beltwaybrokerage.com