Listing ID: 72624
This residential remodeling company is scaling at an amazing pace, with more than 160% revenue growth in less than three years. Sales have rocketed from $4.8 Million in 2020 to $8.2 Million in 2021 to a projected $12 Million in 2022.
The business helps homeowners throughout LA County, the South Bay and Orange County with room additions, kitchen and bath updates, complete-gut rebuilds, landscape/hardscape upgrades, custom home construction and ADU (accessory dwelling unit) buildouts.
Its ability to scale so quickly is tied to a unique business model. The company provides a fully-developed business services platform to its team of highly-skilled Project Managers, working as independent contractors. These Project Managers supervise all aspects of construction from start to finish, serving as the primary contact for homeowners, subcontractors and support staff members..
Two years ago, the owner put the pedal to the medal. His team size has grown from 6 to 23 people in that time. His roster of Property Managers more than doubled. He built out a complete platform of business services for his Property Managers and staff, with SOP’s in place for every step. He dramatically stepped up his paid advertising, SEO and social media presence.
• Truly “built-to-sell” home remodeling company
• Not just a construction company – a platform of business services
• Project Managers lead all projects, start to finish
• Seller is not involved in daily operations
• Work in Progress includes $11 Million in signed contracts
• Typically 100+ projects under management at once
• Plans in place for expansion into new markets
The current Work In Progress (WIP) includes $11 Million in signed contracts under management with $5 Million not yet invoiced. Typically there are more than 100 projects at a time under management.
The business is poised for even more explosive growth. But the seller needs to move on. He is a serial entrepreneur who’s been scaling a different business which requires most of his attention.
Please complete our online NDA at https://managevisors.com/business-listing/home-remodeling-construction-company-in-southern-california/ to instantly receive our Confidential Business Summary. Or call Brian Loring in our office at 855-683-8888 for more information.
- Asking Price: $2,950,000
- Cash Flow: $785,696
- Gross Revenue: $8,195,802
- EBITDA: $625,976
- FF&E: $40,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,650
- Lot Size:N/A
- Total Number of Employees:23
- Furniture, Fixtures and Equipment:N/A
The company was started in 2014, making the business 8 years old.
The business has 23 employees and is located in a building with estimated square footage of 1,650 sq ft.
The building is leased by the company for $7,305 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 entirely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, recent reduction in revenues, or a variety of other factors. This is why it is really important that you not count entirely on a vendor's word, but instead, make use of the vendor's answer along with your total due diligence. This will repaint a much more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover items such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that profit margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new clients? Many times, businesses have repeat consumers, which form the core of their daily profits. Specific elements such as new competitors growing up around the area, roadway building, and also employee turn over can affect repeat customers and negatively influence future incomes. One vital point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the chance to build a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? How might the neighborhood typical house earnings impact future income prospects?