Business Overview

Successful and profitable general contractor business has repeat high-end clientele who pay well, which drives excellent gross margins. Revenue is consistently over $1M and another $1M in backlog/ future projects. Many client houses who need GC work are on Emerald Isle, NC, a beautiful vacation hot spot – with constant renovation needs due to wind storms, salt water and high-end vacation homes, whose owners require upkeep and improvements. This business is priced 20% below broker market price estimates and is turn-key ready.

Financial

  • Asking Price: $395,000
  • Cash Flow: $206,000
  • Gross Revenue: $1,031,000
  • EBITDA: $105,000
  • FF&E: $86,500
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 1985

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Warehouse and office space on 3.4 acres located near Emerald Isle, NC. Space is available at very competitive rates. Building and land are not included in this business sale price, but seller open to possibilities.

Is Support & Training Included:

Seller will provide training and support for new owner.

Purpose For Selling:

Seller wants to retire and enjoy time with his family.

Pros and Cons:

Some competition but few with the reputation of this General Contractor. Supply of quality GC's is tight, so with a reliable, experienced GC buyer, the market is excellent.

Opportunities and Growth:

New development continues in the area, and experienced GC's are in high demand.

Additional Info

The company was founded in 1985, making the business 37 years old.
The transaction shall include inventory valued at $2,000, which is included in the asking price.

The company has 6 employees and is located in a building with approx. square footage of 1,200 sq ft.
The property is leased by the business for $800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is very essential that you not depend totally on a vendor's word, however rather, use the seller's response together with your general due diligence. This will repaint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that earnings margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract brand-new clients? Many times, companies have repeat consumers, which develop the core of their daily revenues. Particular factors such as brand-new competition growing up around the location, roadway construction, as well as employee turn over can affect repeat clients and adversely impact future profits. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood mean house income influence future earnings prospects?