Listing ID: 69912
Business Overview
This locally owned and operated painting and remodeling contractor has served the Louisville and Southern Indiana area for more than 40 years. The strong reputation and brand awareness in the community means that the company enjoys a great pipeline of jobs.
More than 70% of the Company’s revenue is generated through painting projects. The majority of these jobs are interior and exterior residential painting in Louisville and the surrounding areas. The company is fully insured and has a strong referral network. Potential customers are offered free detailed estimates for all projects. The company also offers a wide range of remodeling services.
Financial
- Asking Price: $1,350,000
- Cash Flow: $441,434
- Gross Revenue: $1,774,398
- EBITDA: N/A
- FF&E: $90,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1979
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:11
- Furniture, Fixtures and Equipment:N/A
The company currently operates out of a 1,134 Sq Ft office and 1,200 sq ft garage that is also owned by the seller. If the buyer wants to keep the location, the seller is offering a $2,500/month Gross lease for the property. The property is also available to purchase at an asking price of $600,000.
Will train for 4 weeks @ $0 cost. Complete Home Remodeling and Improvement Beyond painting, a wide variety of professional interior and exterior remodeling are performed by the Company’s experienced crews.
Other Business Interests.
The potential for growth is there for a new owner who is motivated to add additional crews. The services are in high demand and coupled with the reputation of the company, there is always a significant backlog of work.
Additional Info
The company was founded in 1979, making the business 43 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 absolutely different things. For instance, they may say "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is extremely crucial that you not count totally on a seller's word, however rather, make use of the seller's answer in conjunction with your general due diligence. This will repaint a much more sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that revenue margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new customers? Many times, companies have repeat customers, which create the core of their day-to-day earnings. Specific factors such as brand-new competition sprouting up around the location, road building, and also employee turnover can impact repeat customers and negatively impact future revenues. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the higher the chance to develop a returning client base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional average household earnings impact future earnings potential?
