Listing ID: 72578
BUSINESS ACTIVITY: The Company is a specialty contractor that offers roofing repair, maintenance, moss cleaning and full replacement, Gutter, repair, cleaning, installation, and gutter guards to reduce the debris that goes into gutters, window installation, siding installation, and general handyman services.
HISTORY: In January of 2014, the Company started with an SBA Micro-Loan for $67,000 to purchase equipment and cash for working capital. In the beginning, was able to hire a small staff to complete the work. At times, the Owner and the office manager did go into the field to complete manual jobs, for example, cleaning moss of roofs, gutter cleaning, and a few miscellaneous handyman services.
The first-year revenues ended at $800,000, second year was $1,000,000 and third year over $1.2 million. The company has averaged 25 to 30 percent revenue increases year over year.
The Owner has been able to build a team of individuals who have helped build revenues to over $3 million dollars in 8 short years. His ability to create a team atmosphere, promote quality individuals and coach employees to exceed performance requirements. He has created a turnkey operation with a general manager, production manager and three project managers/estimators to take care of the leads and customer installation each week.
The Owner has established high standards for his employees. His philosophy is to complete each job like it’s your own home. A good example is if an installation crew makes a mistake, or the customers’ expectations are not met he will redo the job rather than discount the price no matter what the cost is. This philosophy has earned the Company a strong referral and repeat customer base. This is not easy to achieve in this industry.
Today the Company is busier than ever and needs to hire additional technicians just to keep up with the organic growth. The Owner is proud of what he has built. The foundation has been laid for a new owner to build upon. With a strong industry outlook and a service industry that is virtually recession proof, the Company is poised for strong growth.
- Asking Price: $1,423,000
- Cash Flow: $505,894
- Gross Revenue: $3,271,291
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:7,000
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
The business is in a free-standing building with leased space totaling approximately 7,000 square feet. The office is approximately 3,000 square feet with 4,000 square feet of warehouse space on a one-acre parcel. The lease is for $1,600.00 per month with the lease expiring on February 28, 2024.
Included in the initial transition period of 30 - 45 days will be used to familiarize the new owner with the operation of the business, its policies, and its procedures. This will include relationships with suppliers and customers, ordering and purchasing methods, marketing orientation, and plans for the future.
The Owner may be relocating to another state and does not want to responsibility
The Company has managed to reduce marketing cost year over year. The Company has relied on their reputation, repeat business, word of mouth, print advertising and robust website to grow the sales. The outlook in the industry is strong. A new Owner with more energy could increase the work force and expand services to grow the business.
The business was founded in 2014, making the business 8 years old.
The company has 16 employees and is located in a building with disclosed square footage of 7,000 sq ft.
The real estate is leased by the business for $1,600 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nonetheless, the real reason vs the one they tell you might be 2 entirely different things. For instance, they might state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, current decrease in earnings, or an array of various other factors. This is why it is very important that you not depend totally on a seller's word, however rather, use the seller's answer together with your overall due diligence. This will paint a much more reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover items like supplies, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new customers? Most times, operating businesses have repeat consumers, which form the core of their day-to-day revenues. Specific elements such as brand-new competitors growing up around the area, road construction, and also personnel turnover can influence repeat consumers and adversely affect future profits. One important point to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the higher the possibility to build a returning customer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood median house income impact future earnings prospects?