Listing ID: 66605
This business is an award winning, roofing company serving multiple counties in Western Washington with an established reputation for quality, superior customer service, and fair market pricing.
The company has the knowledge & skill to install and replace composition, wood shake, and metal roofing along with ancillary products like aluminum gutter systems and skylights. Projects completed by the company include re-roofs of existing residential construction (often of a roof prior they installed that has lived out its productive life), new construction as the roofer of choice of many builders in the area, and lower rise commercial properties.
The staff of the business consists of between 125 – 135 employees. This staff has the ability to form approximately 35 crews of two to five members for deployment in the field. Ownership fills an executive management and CFO role in the company. This is a retirement sale, with some flexibility existing relating to the time ownership remains to assist with a smooth transition of ownership.
The business operates out of two locations separately owned by the shareholders of the company with large yards and buildings onsite for storage, maintenance, office, and administrative activities.
The sale price includes $1,000,000 of inventory and $1,500,000 of Accounts Receivable as Net Working Capital Assets.
- Asking Price: $8,250,000
- Cash Flow: $2,000,000
- Gross Revenue: $20,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $1,000,000
- Inventory Included: Yes
- Established: N/A
The seller will provide an appropriate transition training/employment/consulting period to smooth transfer ownership of the company.
The transaction shall include inventory valued at $1,000,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. However, the true factor vs the one they tell you may be 2 absolutely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of various other reasons. This is why it is really crucial that you not rely totally on a seller's word, but rather, make use of the seller's solution in conjunction with your total due diligence. This will repaint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that profit margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Most times, operating businesses have repeat clients, which form the core of their everyday earnings. Certain aspects such as new competitors growing up around the area, roadway construction, as well as staff turn over can influence repeat customers as well as adversely impact future revenues. One crucial thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the higher the chance to construct a returning client base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average house earnings effect future earnings prospects?