Business Overview

Executive Summary
The Company is a Portland-based exterior renovation company servicing the greater Portland and SW Washington area for over 40 years. The company focuses on the exterior renovation of existing residential homes and light commercial properties. The Company is a certified dealer for Milgard® and Cascade Window, Codel Doors, PAC Garage Overhead Doors, and Crystalite skylights.

Financial History
The Company has grown revenues on an organic basis, as it has no formal sales and marketing department with revenues toping $800,000 in 2020. Previous to 2021 the company had grown revenues year over year. 2021 was on pace to meet or exceed 2019 revenue and profitability until the company experienced supply chain issues (primarily windows) that slowed its ability to finish projects in the 4th quarter of the year. 2021 Revenues were in excess of $500,000 with a Sellers Discretionary Cash Flow of $88,000. The Company has over a $200,000 back log in orders as of 12-31-2021.

Management Succession
The owner understands the need for a smooth transition for the Company to continue building on its past success and is willing to stay on in an advisory capacity through a defined transition period as part of the sale.

Hours of Operation
8:30 to 5:00 Monday – Friday

Financial

  • Asking Price: $140,000
  • Cash Flow: $88,000
  • Gross Revenue: $521,015
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: $26,000
  • Inventory Included: Yes
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retiring and moving to be closer to family

Additional Info

The business was established in 1998, making the business 24 years old.
The transaction shall include inventory valued at $26,000, which is included in the suggested price.

The business has 3 employees and resides in a building with disclosed square footage of 2,500 sq ft.
The real estate is leased by the company for $1,600 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. However, the true reason vs the one they say to you may be 2 totally different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or a range of other reasons. This is why it is extremely crucial that you not depend absolutely on a seller's word, however instead, utilize the vendor's answer together with your total due diligence. This will repaint a more realistic image of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be met or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in new clients? Most times, operating businesses have repeat clients, which develop the core of their day-to-day earnings. Particular elements such as new competitors growing up around the area, roadway building and construction, and also employee turn over can impact repeat clients as well as adversely affect future incomes. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the better the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the regional median family income effect future earnings prospects?