Listing ID: 67530
RVA Business Brokers is pleased to offer to market this established, technology driven, semi-passive owner, with a recent and planned focus change from residential to commercial painting Class A contractor in 2018 with 27 well managed and dedicated employees with an outstanding office/general manager prepared to move to the next level with a new owner. The company is poised to explode in growth with current general contractors with a fine back log of business scheduled for 2021.
The company began operations in 2006, initially as just the founder doing painting, repairs, and tree removal. The Company then branched into remodeling, additions, carpentry, windows, decks, porches, and painting. Since 2018, the Company upgraded from Class B to Class A Contractors License and shifted its focus to Commercial from residential and this has proven valuable for large increase in revenue and profit expected for 2020 and 2021 with a large back log of work at the date of this report.
The companies current owner has worked himself out of a job (15 hours per week devoted to SP) utilizing technology (covered later in memorandum) & fully training a competent office manager and project manager to assure profitable quality work.
Along with its accomplishments, the Company has used setbacks as learning opportunities. In 2019, the Company had a significant loss on a large commercial job caused by a detail not listed on the drawings. However, the Company made a decent rebound despite the setback and is still considered as a preferred painting subcontractor with that large commercial company to this day and continue to work with them successfully.
With 16 years of passion and drive, the companies success can be attributed to its dedication to continuous development, project management, organized operations, and craftsmanship.
The company is proud of the fact there is no debt or lawsuit ever filed.
- Asking Price: $340,000
- Cash Flow: $120,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: $80,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:25
- Furniture, Fixtures and Equipment:N/A
Owner Moving to Colorado to semi Retire
The company was founded in 2006, making the business 16 years old.
The business has 25 employees and resides in a building with approx. square footage of 1,000 sq ft.
The property is leased by the company for $1,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. However, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or an array of other reasons. This is why it is extremely vital that you not rely absolutely on a vendor's word, however instead, make use of the seller's solution combined with your general due diligence. This will paint a more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that revenue margins are too thin. Lots of organisations 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new consumers? Often times, companies have repeat clients, which form the core of their daily earnings. Particular elements such as brand-new competition growing up around the location, roadway construction, and also personnel turnover can influence repeat customers and also negatively impact future incomes. One crucial thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the higher the possibility to build a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the local median house earnings effect future earnings prospects?