Listing ID: 67367
For over 30 years, this locally owned and operate company has provided quality service at affordable rates for Richmond homeowners. This company specializes in the installation of aluminum and copper gutters, windows, and vinyl siding, mostly for residential customers. Despite the pandemic, this company continues to see strong demand as the rising costs of new construction in Central Virginia has led many homeowners to stay put and upgrade their existing homes. With a reputation for excellence, this company is well positioned to service this booming market as the economy continues to recover from the pandemic.
This company did not shut down during the pandemic and did not take PPP funds to sustain operations, but did experience a slow down due partially to a particularly rainy year. Business has fully recovered in 2021 which is shaping up to be the best year ever.
- Asking Price: $550,000
- Cash Flow: $310,972
- Gross Revenue: $1,093,344
- EBITDA: N/A
- FF&E: $50,774
- Inventory: $18,000
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The company currently leases a 4600 SF warehouse facility conveniently located to service the Richmond and Central Virginia market.
Will train for 2 weeks @ $0 cost. ** CLASS A Contractor's License required **
Owner is retiring.
There is no shortage of gutter, window and siding contractors in Central Virginia, but there are very few with the experience and reputation of this locally-owned company. As the housing market continues to heat up, and more people relocate to the area from up north, the demand for high quality gutters, windows and siding will continue to increase.
Growth has been limited only by capacity, and could be easily accelerated with the addition of more crews. The company has focused its efforts primarily within a 50 mile radius, but could easily be expanded to encompass adjoining regions.
The venture was founded in 1988, making the business 34 years old.
The sale will include inventory valued at $18,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 totally different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of other reasons. This is why it is very crucial that you not depend absolutely on a vendor's word, yet rather, use the seller's answer in conjunction with your overall due diligence. This will repaint a more reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that profit margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in brand-new customers? Many times, operating businesses have repeat customers, which form the core of their everyday earnings. Particular aspects such as brand-new competition sprouting up around the location, roadway construction, and staff turn over can influence repeat consumers as well as negatively influence future incomes. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the chance to construct a returning consumer base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional typical house earnings impact future revenue prospects?