Business Overview

Established 25-years ago, this residential & commercial service contractor is one of the largest full-service providers in Central Texas, meeting the renovation and real estate improvement needs of owners, property managers and real estate investors.

It stands a part from other service providers deriving over 85% of its revenues from projects initiated by owners and managers of multi-family properties. It benefits from a highly repetitive and diverse customer base.

In addition to being a major regional general contractor, it is a go-to sub-contractor for national companies that lack the internal capacity to meet the needs of Central Texas clients

It has a veteran management team for construction, floor installation, restoration, and carpet cleaning services. These teams manage and oversee the services provided by vetted sub-contractors with the skill sets required for nearly any real estate related project big or small.

Industry Outlook
The remodeling and renovation market, including the multi-family segment, is in a growth trend which is forecast to accelerate in the coming years, particularly in high growth communities such as the Austin Metro. Harvard’s U.S. Remodeling Index indicates that the industry is at the early stages of an extended cycle of higher revenues.

The Company has multiple avenues for growth including the expansion of its service area. It has recently acquired clients in the Dallas-Ft. Worth Metroplex and San Antonio.

2021 Projected: Revenues $10,000,000 + / Net Income $2,000,000+
Asking Price: $5,000,000

Financial

  • Asking Price: $5,000,000
  • Cash Flow: N/A
  • Gross Revenue: $10,000,000
  • EBITDA: $2,000,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1996

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:11,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will provide requested support and training during a transition period under terms mutually agreed upon.

Additional Info

The business was founded in 1996, making the business 26 years old.

The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. However, the true reason and the one they tell you might be 2 completely different things. For instance, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of various other factors. This is why it is really important that you not count completely on a vendor's word, but instead, utilize the seller's answer combined with your general due diligence. This will repaint a more sensible image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases 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 additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new consumers? Most times, companies have repeat consumers, which form the core of their daily earnings. Certain variables such as brand-new competition growing up around the area, road construction, as well as employee turn over can impact repeat clients as well as negatively affect future earnings. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical house income effect future revenue prospects?