Business Overview

This nine-year-old company has grown steadily and reliably over the years, specializing on residential (70%) and commercial (30%) accounts. Core activity is repair and replacement of roofs.

In first half of 2021, management has introduced additional sales staff, new business lines, and new marketing for commercial accounts. The results have been staggering and resulting in additional sales of almost 300%. Future forecasts include sustained growth in 2022 and stabilization in 2023 at between $13-15M revenue.

The employee base is stable and will transition to buyer. Seller is open to offering support as long as needed for company to successfully transition and maintain growth momentum.

Financial

  • Asking Price: $5,050,000
  • Cash Flow: $2,711,865
  • Gross Revenue: $9,158,779
  • EBITDA: $2,711,865
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:15
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Redeployment of funds

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell companies. Nevertheless, the real factor and the one they tell you may be 2 totally different things. For instance, they might claim "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is very important that you not depend absolutely on a seller's word, but instead, use the vendor's solution in conjunction with your total due diligence. This will paint a much more reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too small. Lots of businesses 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 obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new clients? Often times, companies have repeat customers, which form the core of their daily profits. Specific elements such as new competitors growing up around the location, roadway building, as well as employee turnover can influence repeat consumers and also negatively influence future earnings. One important thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local typical house income effect future income potential?