Business Overview

This Middle TN based residential construction company is a well-established, turnkey operation. Their focus is simple: Design, Develop, Build. In the often-unknown process of homebuilding this company has created an unwavering selection process that helps eliminate inefficiencies along the way. By partnering with a relentless land acquisition team this opportunity has all the ingredients to produce maximum profitability in a booming market. Current numbers are based on properties already acquired and can increase based on future acquisitions. Excellent semi absentee immediate cash flow opportunity for an efficient run business.

Financial

  • Asking Price: $50,000,000
  • Cash Flow: $14,625,000
  • Gross Revenue: $60,000,000
  • EBITDA: $14,625,000
  • FF&E: N/A
  • Inventory: $20,000,000
  • Inventory Included: Yes
  • Established: 2014

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

With a new office space in the near future an added opportunity for more growth will be obtainable if desired.

Is Support & Training Included:

Owner is willing to stay on for transition period, and to work with new owner on the land acquisition component of the business.

Purpose For Selling:

Other Business Interest

Additional Info

The venture was started in 2014, making the business 8 years old.
The sale will include inventory valued at $20,000,000, which is included in the suggested price.

The company has 7 employees and is located in a building with estimated square footage of N/A sq ft.
The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. However, the genuine factor and the one they tell you might be 2 entirely different things. For instance, they might claim "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of other reasons. This is why it is really crucial that you not depend totally on a vendor's word, but rather, use the seller's solution in conjunction with your overall due diligence. This will paint an extra practical image of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new clients? Most times, companies have repeat clients, which form the core of their everyday profits. Certain factors such as brand-new competition sprouting up around the area, road construction, and also personnel turn over can affect repeat customers and adversely influence future profits. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to build a returning client base. A final idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the regional median family income influence future revenue prospects?