Listing ID: 66854
**UNDER CONTRACT / LOI**
Water damage, remediation, and restoration company serving metro Seattle. 30%+ margins, cash flow machine, business has thrived through Covid.
Track record of growth – sales of $819k in 2018 to $1,883k in 2021 (cash basis). Cash flow to owner growth mirrors the substantial sales increases, from $130k in 2018 to $581k in 2021. Business is a cash machine – generating 31% net profitability for the owner.
10+ years in operation. Owner has a tenured, cohesive crew and is ready to retire and see the business continue to grow under new ownership.
200+ 4.8 star reviews across Google, HomeAdvisor, Yelp, Facebook. A+ BBB rating. 10,000+ YouTube views. High SEO ranking and reputation keep the phones ringing!
Evergreen customer demand – the housing inventory in metro Seattle is one of the oldest in the country and there is no lack of precipitation; water damage and rebuilds continuously occur regardless of economic cycle
Business is centrally located with quick access to major transit arteries.
Number of clear paths for new owners to continue growth, more detail provided in confidential marketing documents after you complete a Non-disclosure Agreement.
5 vehicles + equipment in excellent condition – vehicles are all paid off and well maintained, same goes for the drying and shop equipment. New owner will not need to purchase any vehicles or equipment immediately after buying the business
Internal structure – business has an award-winning team of 11 staff. Each employee has undergone extensive industry training and sufficient cross-training has been conducted to ensure unmatched team collaboration. Technicians and Project Managers have undergone in-depth training and numerous accredited industry associations
Financials have been reviewed and pre-qualified by SBA lenders at $1.8M. Cash flows finance this business. You bring 15 – 20% down and, if needed, obtain an SBA loan. Seller financing up to 10% of the transaction price will be considered at the seller’s sole discretion.
This business is evergreen, profitable, and will continue to grow – the opportunity will not last long. For more info, complete an NDA here:
After your NDA has been reviewed more information will be released!
- Asking Price: $1,800,000
- Cash Flow: $581,000
- Gross Revenue: $1,833,000
- EBITDA: N/A
- FF&E: $253,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
2,458 sq. ft. of office, shop and warehouse space
Transition Period and/or Training - owner is amenable to providing the required training to a new owner to the extent it is necessary based on their background. This can likely be achieved in 30 - 60 days.
Owner ready to retire.
More detail provided in Confidential Business Review (marketing documents)
The business has 11 employees and resides in a building with disclosed square footage of 2,500 sq ft.
The real estate is leased by the company for $2,433 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. However, the genuine reason vs the one they say to you may be 2 completely different things. For instance, they may say "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in profits, or a variety of various other factors. This is why it is extremely essential that you not rely entirely on a vendor's word, but instead, make use of the vendor's solution in conjunction with your total due diligence. This will repaint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover items like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new consumers? Most times, companies have repeat clients, which develop the core of their daily revenues. Certain factors such as brand-new competition sprouting up around the area, road building, and employee turn over can impact repeat customers and also negatively impact future earnings. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood average home income influence future earnings prospects?