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Name:
#2018 Commercial Maintenance Service
Categories:
Service
Region:
Metro Denver
Industries:
Service
Segments:
Service
Asking Price:
$895,000  
Down Payment:
$179,000  
Revenue:
$ 1,208,781  
Adj. Profit:
$ 238,809  
Adj. Profit Type:
Seller's Discretionary Earnings  

COMMERCIAL MAINTENANCE SERVICE - This well-established, respected Denver area business provides unparalleled, year-round service to long-term commercial customers.  Approximately 90% of the work performed is recurring.  The company is set up to attract commercial clients seeking reputable, insured, and capable professional service.  Relocatable, although its current location is centrally located near the bulk of its customers.  Jan-Oct Gross Sales of $1,302,667 are up 28% over the same period of 2017; SDE of $304,457 is up 34%. Contact Scott Densmore, scott@fbb.com. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.