Listing ID: 67547
Great opportunity to purchase an established and reputable drywall installation and framing contractor serving commercial customers across the DC metro area. The business was founded in 2006 and consistently delivers quality service, professionalism, and an unmatched level of project management in their work. The business has cultivated many loyal and repeat customers by offering competitive pricing, on-time performance, a commitment to job safety, and a high degree of attention to detail in collaboration with the sub-contractors they use to do the work.
The primary services offered include: installation of drywall systems, exterior sheathing, acoustical ceiling systems, insulation, hollow metal frame door installation, rough carpentry, FRP paneling, and interior fit up and exterior structural metal frame systems. The business uses high quality materials from respected manufacturers in their work. Over the past 15 years, the company has steadily grown and completed many successful projects and earned accolades from clients, developers, and general contractors alike.
The business has a great reputation and existing customer base so the next owner will be able to step in and build on the years of success. The business was impacted by COVID during 2020, but bounced back in 2021 to finish the year at pre-covid/historical performance levels which averaged around $400k in revenue and $100k in cash flow. Don’t let this opportunity pass you by and contact us today!
- Asking Price: $199,995
- Cash Flow: $137,779
- Gross Revenue: $415,911
- EBITDA: N/A
- FF&E: $18,000
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business operates out of a commercial office building in Northern Virginia. The space is leased for only $654/month and has flexible annual renewal terms. The next owner could relocate the business to a location of their choosing at their discretion.
Seller will offer necessary training and support.
Owner is planning on retiring and relocating out of the area.
There is standard competition in the commercial drywall contracting space, but the business has been established for 15 years and has a strong presence in the market.
The demand for commercial construction and renovation services in the DC metro area is strong and stable. There is also room for growth and expansion into complementary or residential services. A new owner might also consider hiring an individual to assist with back office operations, project management, and customer service as needed.
The venture was started in 2006, making the business 16 years old.
The deal doesn't include inventory valued at $2,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. Nonetheless, the real reason vs the one they tell you may be 2 absolutely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or a variety of other reasons. This is why it is really crucial that you not count totally on a seller's word, yet rather, make use of the seller's response along with your general due diligence. This will paint an extra sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies take out loans so as to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new customers? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Certain variables such as brand-new competitors sprouting up around the area, roadway construction, as well as staff turnover can influence repeat customers and adversely influence future revenues. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the possibility to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the neighborhood mean house earnings impact future revenue potential?