Listing ID: 73056
Licensed and insured residential specialty trade contractor since 1998.
This is a very well-run company with great backroom procedures and long-term employees.
All staff are employees (no sub-contractors), well trained and require very little supervision from the owner. Owner believes staff will stay on and he will help with transition of employees and clients.
The owner has already started the process of training their foreman to take on owner’s duties. The owner has reduced his schedule to 25-30 hours per week.
The office manager has been there over 20 years and also runs the showroom. The long-time crew foreman is currently being trained to assume most of the owner’s role. Initially as backup while they train a crew chief for the foreman’s role. Note: The transition piece for a new buyer is already underway.
The sales breakdown is approximately 50% existing construction, 35% new construction and 15% repair. Business concentration no more than 6% with any client.
Sales for the past three years are very consistent with profit increasing year over year.
The sales for 2021 are up over last year by 10% and profit up 15% as of September 30, 2021 and on target to exceed $2M.
The work in progress exceeds 90 days totaling $918,220,000 as of November 2021.
Our SBA Lender has reviewed this company’s financials and says it qualifies for the their 7A loan program. Terms are outlined in the information we send out after receiving a signed NDA.
We provide business plan and cash flow projections required by lender in the CBR which requires a Buyer’s Financial Profile prior to release.
Please contact Richard Roberts by using email form to the right or by calling his direct number,479.689.4455 Ext 11.
NOTE: The phone number to the right that is revealed when you click on button is not our phone number. It is a tacking number that we do not use.
- Asking Price: $1,250,000
- Cash Flow: $322,741
- Gross Revenue: $1,887,273
- EBITDA: N/A
- FF&E: $125,000
- Inventory: $20,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:17
- Furniture, Fixtures and Equipment:N/A
The facilities include offices, warehouse, inside parking for trucks/equipment and 2,500' showroom areas. Centrally located with easy access to route 49.
The Northwest Arkansas area continues to be a leading destination for relocation for many providing solid residential growth. This company has a major competitive advantage by using only employees which they are able to better manage. It also secures their position in at the upper end of the market.
There has been little advertising and internet marketing since most focus has been on general contractors and upscale client list built up over 20+ years. Adding a direct marketing effort to home owners and entering the commercial market are both logical areas of growth. Increasing product line to include high end engineered floors and other floor coverings would be a natural path to growth with little capital expense. Adding a showroom in a retail area would also increase exposure to home owners. "The fastest-growing counties and metropolitan area in Arkansas over the past decade were in the state's northwest region, according to data released Thursday from the U.S. Census Bureau. Benton County had the state's fastest growth, with its population increasing by 28.5% since 2010 to 284,333. The second fastest growing, Washington County, saw its population increase by about 21% to 245,871. The Fayetteville-Springdale-Rogers metropolitan area grew by 24.2% to 546,725. The region is home to the headquarters of Walmart and Tyson Foods, as well as the University of Arkansas' flagship campus in Fayetteville." Source AP News
The venture was started in 1998, making the business 24 years old.
The transaction shall include inventory valued at $20,000, which is included in the suggested price.
The company has 17 employees and is located in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is very crucial that you not depend completely on a vendor's word, yet rather, make use of the seller's response together with your total due diligence. This will repaint a more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that profit margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations 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 must be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Most times, businesses have repeat consumers, which form the core of their day-to-day profits. Specific variables such as brand-new competition sprouting up around the location, road building, and also employee turnover can affect repeat customers and adversely influence future revenues. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to build a returning consumer base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median household earnings impact future revenue potential?