Business Overview

Since its establishment in 2013, this small, local painting company has built a reputation for excellence and customer satisfaction. Catering to a more upscale market, the company residential painting jobs comprise about 80% of jobs, with the remaining 20% commercial. With about 75% of all jobs being inside, this company is able to maintain steady cashflow throughout the year. Many of the tenured crew have been with the company for over 5 years and are extremely loyal. The seller prides himself in taking care of his employees so that they care for the customers! The company generally does NOT subcontract.

The seller is able to maintain a flexible work schedule and has the ability to run the business remotely when needed. He is primarily focused on sales, quoting, and administration – he does none of the paining himself and relies on a strong GM to run the crews.

Business slowed in the early days of the pandemic, but the company was able to retain all employees and weathered the storm. Business has returned stronger than ever and, despite a slight drop last year, 2021 is already shaping up to be the best year ever.

This is a great turnkey opportunity to own your own business with ample room for growth. This could also be a great add-on for an existing painting or residential contracting company.

Financial

  • Asking Price: $190,000
  • Cash Flow: $127,106
  • Gross Revenue: $516,139
  • EBITDA: N/A
  • FF&E: $51,107
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2013

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:

The owner operates from a small administrative office that can be leased on a short or long term basis, and uses his home as a staging area.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The new owner will be required to obtain a Virginia Class B contractors license.

Purpose For Selling:

Owner is pursuing other entrepreneurial interests.

Pros and Cons:

There is no shortage of painting contractors in the Richmond market, but few have established the reputation for excellence that this company has. Whereas most painting companies struggle to attract and retain qualified painters, this company enjoys a long-tenured, loyal workforce.

Opportunities and Growth:

Working only 10-20 hours per week, the current owner has not fully exploited his sales channel and there is huge growth opportunity for the new owner. With additional crews, the seller believes that the company could easily hit $1MM in gross sales.

Additional Info

The company was founded in 2013, making the business 9 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of various other factors. This is why it is really crucial that you not count completely on a vendor's word, however rather, make use of the vendor's answer along with your total due diligence. This will paint a more sensible 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 have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that revenue margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new customers? Most times, companies have repeat clients, which create the core of their everyday profits. Specific variables such as brand-new competitors sprouting up around the location, roadway construction, and also employee turnover can affect repeat customers and adversely affect future profits. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the chance to build a returning client base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood median household income impact future income prospects?