Business Overview

One of the most important attributes of a desirable acquisition is market dominance. When a business enjoys a commanding presence then the profits typically follow.

This characteristic is hard to come by; it takes years of excellent performance to build a reputation that puts the company at the top of everyone’s list.

This business has done just that—since 1998 it has provided just the right set of high-quality design and construction services to local homeowners and builders who wish to have something special. This market segment shows no signs of abating.
It is propelled in part by the well-known “age-wave”, whereby there is an ever-growing proportion of homeowners who elect to make improvements to their home rather than move.

It also doesn’t hurt to be in one of the most desirable areas of the state—a place where people go on vacation. This factor supports a strong real estate market, in which builders and realtors become customers and referral sources.

These fundamental drivers provide stability to the business, so a buyer can be confident that the risks that often attend the purchase of a business are simply not a factor. This business shows 24 years of successful growth (and 24 years of surviving the various ups and downs of the economy and financial markets that occurred during that time!)

Now it’s time for the owners to retire. What has taken years to build is now available for you to take over and continue growing.

One might think, why buy this company when I could just start my own? Because, it takes years to build the relationships, the reputation, the contacts with unique vendors, the trained and loyal staff, and the top-quality specialized services necessary to dominate a market.

Considering that most business startups don’t make it to the 5-year mark, one would do well to take over a solid, dominant company—a 24-year-old company with all of the necessary systems and resources in place to continue growing.

Perhaps you own an established residential design company and wish to expand. You can take over this unusually desirable market area, in which you are likely not operating. Or perhaps you are an experienced business operator who wishes to add to your holdings.

The question always arises—how involved is the owner? Is the owner performing essential daily services? Could the business be owned and managed from a distance, with only periodic visits?

In this case, the owner performs certain financial management functions, but they do have a bookkeeper in place who is capable of taking these functions over. The owner has spent the last several years slowly backing out of the company’s sales force and successfully works very part time. The business has a manager in place who would continue to work.

So, to summarize—if the buyer is not located in the geographic area of the business, and does not want to move there, the business can easily continue to thrive with only normal owner-involvement functions. The existing employees are highly trained and quite capable of performing their services without supervision.

Either way, this business is highly financeable using traditional SBA financing. And the broker will assist in making the connection with a cooperative (and creative) SBA lender.

You don’t have to have the full purchase price in hand, just approximately 15% to 20% and decent credit. The proven business cash flow handles the rest (with a more than adequate debt-service coverage ratio.)

Based on historical performance, the company is scheduled to pay for itself while paying you a strong six-figure salary. In this scenario, you end up owning the operation, with a scheduled return on investment that would be virtually impossible to duplicate with any other use of your funds.

As mentioned above, the owner does not have to work in the business. Some business offerings are actually full-time jobs, but this company has grown way past that. The buyer can elect to just perform the typical functions of an owner and enjoy the cash flow.

If this all seems worth exploring, why not request an NDA and learn more about this rare opportunity?

Financial

  • Asking Price: $2,740,996
  • Cash Flow: $740,996
  • Gross Revenue: $5,547,814
  • EBITDA: $740,996
  • FF&E: N/A
  • Inventory: $100,000
  • Inventory Included: N/A
  • Established: 1998

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:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Combination Offices and Warehouse, excellent condition. Seller owns building and offers a 10-year lease at fair market value.

Is Support & Training Included:

The Seller will provide 30 days of on-site support and orientation to the clients, employees, and vendors. Thereafter, the owner will consider a consulting arrangement if the buyer wishes. Seller will contribute $20K per employee tenure incentive.

Purpose For Selling:

Retirement

Pros and Cons:

There is no viable competition with this level of quality and price performance. The company dominates its wide-area market.

Opportunities and Growth:

The company could easily be expanded by adding more designers, marketing to more builders, including commercial projects, and expanding remodel which is currently limited due to staff. None of these initiatives would be capital intensive.

Additional Info

The venture was established in 1998, making the business 24 years old.
The sale shall not include inventory valued at $100,000*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nevertheless, the real factor and the one they tell you may be 2 absolutely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of various other factors. This is why it is very essential that you not count absolutely on a vendor's word, yet instead, make use of the vendor's answer combined with your total due diligence. This will repaint an extra realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that earnings margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in brand-new consumers? Many times, operating businesses have repeat clients, which develop the core of their everyday profits. Specific factors such as new competitors growing up around the area, roadway building, as well as personnel turn over can affect repeat customers and also negatively impact future profits. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the possibility to construct a returning customer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the regional mean house income influence future income potential?