Business Overview

This successful and award winning commercial and industrial fence contractor has grown into the premier provider of fence installation in the Midwest region. For many decades they have participated in numerous projects that include some of the finest sports facilities in the region along with numerous municipalities, and industrial developments. Other product lines include temporary fencing for festivals, events, and other commercial uses. Additional capabilities include the installation of other fence related products that promote and increase safety, security, or enhance privacy.

Financial

  • Asking Price: $2,750,000
  • Cash Flow: $769,567
  • Gross Revenue: $2,773,484
  • EBITDA: N/A
  • FF&E: $475,000
  • Inventory: $38,650
  • Inventory Included: Yes
  • Established: 1976

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates out of a 7,000 square foot plus commercial building. The facility has both warehouse and office space. The property is well laid out and has plenty of room for employee and service vehicles, as well as a lay down yard for equipment and inventory. With the proximity to the interstate, planned interstate exit/entrance, and the planned growth in the area, the value of this property is expected to appreciate very well over time.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. Fence Contractors are not required to carry a license.

Purpose For Selling:

Retirement.

Pros and Cons:

The industry has many participants, however the majority are very small and focus on residential fencing. This company is one of the few in the market that focus on commercial and industrial projects. The scale and notoriety of the projects is unmatched by any of the local competitors as can be proven by viewing the portfolio of completed work. Corporate growth is expected to increase demand for fencing construction from a variety of nonresidential customers, such as hotels, office buildings and sports facilities. Over the five years to 2026, IBISWorld expects that the value of private nonresidential construction will increase at an annualized rate of 3.1%. Improved growth prospects within the institutional building market are expected to be supported by anticipated growth in educational, healthcare, municipal, and commercial & industrial facilities.

Opportunities and Growth:

Commercial and Industrial growth in the region is expected to continue to be strong. Both Kentucky and Indiana have announced major economic development projects with some of the countries largest companies. Continued growth in the businesses core service of commercial fence installation is expected. The company capitalizes on past projects that have been award winning and recognized nationally and leverages that success with their existing relationships to maintain a strong pipeline of work. The region has many festivals, concerts, and major sporting events that will return as the country emerges from the pandemic. As a result there is an opportunity to capitalize on the increased need for temporary fence in the coming years. Other potential growth opportunities for a new owner could include: Residential Installation Wholesale Fence Sales and Distribution Geographical Expansion Welded Railing Silt Fence Company Installation of Access Controls

Additional Info

The business was established in 1976, making the business 46 years old.
The sale will include inventory valued at $38,650, which is included in the asking price.

The business has 10 FT employees and is located in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell businesses. However, the true factor vs the one they say to you might be 2 totally different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is really essential that you not rely totally on a vendor's word, but rather, utilize the seller's answer combined with your total due diligence. This will paint a more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new clients? Often times, operating businesses have repeat consumers, which form the core of their daily profits. Certain factors such as brand-new competitors sprouting up around the area, roadway building, and also staff turn over can influence repeat customers and adversely impact future revenues. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the opportunity to build a returning consumer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the local typical household income effect future income prospects?