Listing ID: 70297
For sale is a highly successful and lucrative disaster restoration business which is not located in the Twin Cities metro area. This business is an independent, local company and has built strong relationships with key centers of influence in its geographic operating area, leading to explosive growth in the past, and many more growth opportunities on the horizon. This business is recession and pandemic resistant.
With a strong management team in place and a seller that is open to strategies to make the transition as smooth as possible, this business is poised to be a cash generating machine for the next owner. A minimum of $300,000 in liquid cash is needed to discuss this business opportunity.
- Asking Price: $2,400,000
- Cash Flow: $862,231
- Gross Revenue: $2,654,048
- EBITDA: N/A
- FF&E: $388,028
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1999
- 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 business is located in a leased facility that is perfectly suited to the business’s operations. The landlord is open to a long-term lease with a new owner. There is an ability to grow the business more from the current location without changes to the facility.
Will train for 2 weeks @ $0 cost. This company provides water, fire, and smoke damage restoration along with trauma and crime scene clean-up. In addition, customers seek out this business for air duct cleaning, dryer vent cleaning, carpet and upholstery cleaning, as well as testing for air quality and lead paint. The company also does demolition and rebuild work.
The owner wishes to retire.
Over the five years to 2021, the Remediation and Environmental Cleanup Services industry has experienced growth. As the economy strengthened for the majority of the five-year period, industry revenue increased in line with construction, manufacturing and nuclear reactor decommissioning activity. Over the past five years, industry revenue increased, rising an annualized 4.0% to $20.6 billion. However, industry revenue decreased an estimated 3.4% in 2020 due to the effects on downstream demand caused by the COVID-19 (coronavirus) pandemic. Fortunately for operators, an increase in the Environmental Protection Agency's (EPA) budget and increased demand for disaster cleanup services have helped to somewhat offset the negative effects of the pandemic on downstream industries. Moreover, a growing and reopening economy in 2021 are anticipated to benefit the industry, causing industry revenue to grow an estimated 9.0% that year.- IBIS World
There are numerous avenues through which this business can grow. The current owner has a strategic plan in place to start capitalizing on the best options under current management. Growth opportunity options include expanding geographical reach, expanding specific service lines where there is known demand, and further collaboration with local partners.
The business was founded in 1999, making the business 23 years old.
The deal will include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell businesses. However, the real factor and the one they say to you might be 2 absolutely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or a range of other reasons. This is why it is very vital that you not depend completely on a seller's word, however rather, make use of the vendor's response together with your overall due diligence. This will paint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that profit margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new customers? Often times, businesses have repeat clients, which create the core of their daily revenues. Specific aspects such as brand-new competition growing up around the area, road construction, as well as personnel turnover can affect repeat consumers as well as negatively affect future profits. One important thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the greater the possibility to construct a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood average household earnings influence future revenue potential?