Listing ID: 72626
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 venture was started in 2014, making the business 8 years old.
The business has 23 employees and resides in a building with approx. square footage of 1,650 sq ft.
The property is leased by the company for $7,305 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nonetheless, the true factor vs the one they say to you might be 2 entirely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be excuses to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of other factors. This is why it is really vital that you not count entirely on a seller's word, however rather, utilize the seller's response in conjunction with your general due diligence. This will repaint an extra reasonable image of the business's present circumstance.
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 offer. Lots of companies borrow money in order to cover items such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that revenue margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new clients? Most times, operating businesses have repeat clients, which develop the core of their everyday profits. Particular variables such as new competition sprouting up around the area, road building, and personnel turnover can affect repeat consumers and also adversely affect future earnings. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the better the opportunity to build a returning client base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the local average home earnings influence future income potential?