Business Overview

Successful, Turn-Key, and Established Home Improvement and Remodeling Business is available for immediate sale and comes fully stocked with an extensive future project pipeline. If you are interested in taking over a professionally managed, fully diversified, home improvement construction business that generates excellent bottom line cash flow, this is the right business opportunity for you.

Business Headlines:

Proven & Profitable — this business has grown top line revenue 22% since 2018 in spite of the Covid pandemic. In 2021, the business generated over $600,000 in adjusted cash flow, which delivered an incredible 37% return on sales.

Inside and Outside Construction Team — the business utilizes a combination of internal, company managed work teams along with “hand-picked” quality sub-contractors to execute the work projects. Both the inside and outside teams are fully dedicated and quality focused.

Loyal Customer Base — after 3 decades plus in the business, there is a long list of satisfied customers who continue to come back for additional home improvement and expansion projects while also referring new business. The monthly marketing newsletters are sent to over 900 past/present/future customers and feature helpful home improvement tips as well as new service offerings.

Location, Location, Location — the business is located in a heavily populated, affluent, and vibrant community in Northern Virginia so there is upside growth potential. Since all customer meetings occur at the clients’ residence or business facility, the home-based location helps keep operating costs low which contributes to the strong operating margin.

Bountiful Job Pipeline — due to strong customer demand for its services, the business has earned an extensive booking of business that is already on the forward calendar. In fact, the advance project bookings go out as far as 15 months and total over $2M in estimated billings. This is an indication of two important points: 1) Customers appreciate the quality and professionalism and are willing to wait until their job slot opens; and 2) Investment in capacity improvements (people/equipment) could provide significant additional returns for new ownership.

A Quality-Based Culture with Great People — one of the most valuable business assets is not found anywhere on the balance sheet … the loyal, dedicated, well trained and customer-oriented employees. The present team is small in number, but skilled, efficient and consistently delivers quality oriented execution and project oversight. The sub-contractors share into this unique and differentiated culture.

Strong Brand Equity — this business has become well known and respected within the community and has consistently been recognized by its suppliers and sub-contractor partners as one of the most dependable home improvement companies in the Middle Atlantic Region. Customer testimonials and social media report cards provide further evidence, such as reviews in Next Door and Washington Checkbook.

Special Financing Program — the business has already been pre-qualified with a special financing package. A loan term sheet is available in the Business Prospectus. Important note: All buyer prospects will be subject to full underwriting and must meet lender qualifications in order to qualify for the finance package.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $621,819
  • Gross Revenue: $1,676,026
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1990

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:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is a home-based business and is flexible to relocate within a diverse, populated, affluent, and growing customer base. (Home Based)

Is Support & Training Included:

The business specializes in all aspects of construction & project management, including: Electrical, Plumbing, Carpentry, Masonry, Painting, Drywall, and Hardscape. All business licenses and state certifications are currently in place and in good order. A Commonwealth of Viriginia Contractors A License is highly recommended for the new ownership.

Purpose For Selling:

Owner is retiring after 31 successful years in the business.

Pros and Cons:

Most small-and medium-scale contractors confine their construction activities to a local market or niche service offering, such as specialty trades. This business has establish a solid, quality focused reputation in a diverse range of home improvement services and leverages their reputation to generate work contracts across this broader spectrum.

Opportunities and Growth:

Growth potential options include: Additional marketing of services into both the present market area and adjacent areas, along with capacity expansion investment (people and equipment) will enable service to a wider population of customers with shorter wait times and quicker turnaround times.

Home Based:

This Business Is Home Based

Additional Info

The business was founded in 1990, making the business 32 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. Nonetheless, the true factor and the one they tell you may be 2 entirely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in profits, or a variety of various other factors. This is why it is extremely important that you not count entirely on a seller's word, yet rather, make use of the vendor's solution together with your overall due diligence. This will paint a more sensible picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover things like stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract new consumers? Often times, companies have repeat consumers, which develop the core of their daily revenues. Specific factors such as brand-new competition growing up around the area, road building, and personnel turnover can influence repeat customers as well as negatively impact future earnings. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the better the chance to build a returning consumer base. A final idea is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean home earnings effect future income prospects?