| Full Price: $685,000 | Cash Flow: $302,000 |
| Annual Debt Service: $76,999 | After-debt service income: $225,000 |
| EBITDA: 2.27 | Amortization Period: 5 years |
| Interest Rate: 10% | Established: 2007 |
Are you an electrician who is tired of working for others and wants to launch a successful business? Consider purchasing an established electrical contracting firm, such as the one shown in this case study. This firm is an excellent example of the various trade companies for sale, which include roofing, tile installation, solar panel installation, flooring, gardening, and more.
Challenge:
Establishing your own business can be difficult, but acquiring an existing firm might offer you a jump start. Financing such a purchase, however, can be difficult for many entrepreneurs.
Solution:
The yearly debt service for acquiring this electrical contracting firm would be $76,999, with conventional financing options available at 10% interest amortized over five years. Nonetheless, the company earns $302,000 in cash flow, leaving an after-debt service income of $225,000. This makes it an extremely appealing purchase for any electrician wishing to establish their own business.
Results:
Purchasing an existing electrical contracting firm with the correct direction and assistance can be a great opportunity to become your own boss and take control of your career. You can take advantage of Winthrop Capital Group’s Turn A Business incubator program to design a strategy to fulfill your financial goals by contacting their business experts.
Don’t put off being your own boss. Consider acquiring a pre-existing electrical contracting business now to take the first step toward entrepreneurship. With the correct backing and guidance from Winthrop Capital Group, you can make your goal of starting your own business a reality.