Business Overview

RVA Business is proud to present this reputable, million-dollar Home Construction and Remodeling Company located in the thriving Northern Neck of Virginia.

The Northern Neck is seeing an influx of vacationers eager for a second home and retirees relocating. New home construction represents 50% of the revenue. Existing home renovations, additions, decks, and roofs contribute the remaining 50%.

The Company is always the first referral from past clients and vendor partners. They have more business than they can handle and have never needed to advertise or have an online or social media presence.

The Business outperforms its competitors with their high touch customer service, exceptional quality, honest pricing, construction time, and design vision. Unlike competitors who build the same style house again and again, homeowners choose Company for their vision. The Company dedicates time with homeowners to understand their needs and help them decide what type of design would work best for their lives.

The Buyer will start off strong with $635,000 in contracts already on the books for 2022 and $900,000 estimates out for review.

This is an opportunity for growth. The Seller’s retirement is the perfect time to advertise, add employees and subcontractors, and build a social media profile. 

Numbers:  Asking Price $450,000      Projected 2021 Sales $1,600,000     Projected 2021 SDE $220,000

Key Investment Considerations:

$900,000 in Pending Contracts
$635,000 Contracts booked for early 2022
14% Cash Flow
$40,000 in Assets
Exceptional reputation with clients and vendor partners
Elegant eye for design
Expert staff and subcontractors
High-quality materials
High-touch, exceptional customer service
Has never advertised – Tremendous Room for Growth!

Financial

  • Asking Price: $450,000
  • Cash Flow: $300,000
  • Gross Revenue: $1,800,000
  • EBITDA: N/A
  • FF&E: $40,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2008

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:

Work from Home Office

Is Support & Training Included:

Owner will negotiate a reasonable period to assure smooth transition

Purpose For Selling:

Owner is 70

Pros and Cons:

The Business outperforms its competitors with their high touch customer service, exceptional quality, honest pricing, construction time, and design vision. Unlike competitors who build the same style house again and again, homeowners choose Company for their vision. The Company dedicates time with homeowners to understand their needs and help them decide what type of design would work best for their lives.

Opportunities and Growth:

The Northern Neck is seeing an influx of vacationers eager for a second home and retirees relocating. New home construction represents 50% of the revenue. Existing home renovations, additions, decks, and roofs contribute the remaining 50%.

Additional Info

The business was started in 2008, making the business 14 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 entirely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of other reasons. This is why it is really essential that you not rely entirely on a seller's word, yet rather, use the seller's response together with your general due diligence. This will paint an extra realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that profit margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be met or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new customers? Many times, companies have repeat clients, which create the core of their everyday earnings. Particular variables such as brand-new competition sprouting up around the area, road construction, and staff turnover can influence repeat clients and also negatively influence future revenues. One vital thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final thought is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the local median house earnings impact future earnings prospects?