Business Overview

The Company is headquartered in Redmond, WA and provides its services throughout the greater Puget Sound area. The Company offers a wide range of commercial flooring materials, installation, and repair options. Currently, they serve a large base of commercial customers across a variety of commercial property types. In 2020, the Company was involved in over 300 commercial projects. The Company also regularly receives inquiries for new projects, with up to 6-7 install requests being received per week.

The Company delivers exceptional installations by using high-quality flooring materials and persistent attention to detail throughout the entire job process, from the initial quote to project management, installation, and job completion. They are focused on differentiating itself from competitors by providing the highest level of service to all customers.

Many of their key employees have continued to work with the Company since its inception and remain focused on providing excellent customer service. The Company has a talented and experienced management team that is continually developing upon vital established relationships with construction companies, suppliers, and subcontractors. Currently, they have 8 full-time employees, including three active-owners.

Devotion to customer service is at the core of the Company’s success. They have excelled in providing exceptional service to customers by ensuring projects are completed timely across all types of commercial properties, including health care facilities, multi-use properties, auto dealerships and more. The Company’s dedication to providing consistent quality installations and service has allowed them to reach a large breadth of commercial customers.

Financial

  • Asking Price: $3,300,000
  • Cash Flow: $899,223
  • Gross Revenue: $7,851,509
  • EBITDA: $592,867
  • FF&E: $280,000
  • Inventory: $385,000
  • Inventory Included: N/A
  • Established: 2001

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:8
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Owner(s) available for transition and/or long term hire.

Purpose For Selling:

One owner retiring. The others feel it's time to transition.

Pros and Cons:

The Puget Sound market is still very active and the company's reputation makes them a trusted contractor throughout the industry with some of the biggest General Contractors.

Opportunities and Growth:

The company does very little marketing and relies on referrals. If a new owner wanted to invest in sales support, great opportunity for company to grow,

Additional Info

The business was started in 2001, making the business 21 years old.
The transaction shall not include inventory valued at $385,000*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell operating businesses. However, the genuine reason and the one they tell you might be 2 absolutely different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or an array of various other reasons. This is why it is very vital that you not depend absolutely on a seller's word, however rather, use the seller's response along with your overall due diligence. This will repaint a more practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that revenue margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations 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 have to be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day earnings. Certain elements such as brand-new competition sprouting up around the location, road construction, and employee turn over can influence repeat customers and negatively influence future incomes. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the opportunity to construct a returning customer base. A last thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median household income influence future earnings potential?