Listing ID: 76117
For over 35 years, this drywall company has built long standing relationships with many of the top home builders along the Front Range. The consistently high quality work has resulted in one of the strongest reputations in the home building industry. The company provides turn-key services from delivery to hanging, taping, and texturing. The owner is willing to stay on board to help manage the business (time negotiable) and has a well trained supervisor in place along with dependable employees This is an ideal acquisition for an industry buyer looking to expand geographically in the Colorado market or an experienced individual with general construction background who can take advantage of the key relationships in place. This business can continue to grow by expanding locally, adding commercial contracts, and implementing digital marketing.
- Asking Price: N/A
- Cash Flow: $1,215,865
- Gross Revenue: $7,812,171
- EBITDA: $1,215,865
- FF&E: $82,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1985, making the business 37 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell companies. However, the real reason and the one they say to you might be 2 entirely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or a variety of other reasons. This is why it is extremely vital that you not depend absolutely on a seller's word, however instead, make use of the vendor's answer together with your total due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that earnings margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new consumers? Many times, businesses have repeat consumers, which create the core of their everyday earnings. Specific factors such as new competitors sprouting up around the area, road building and construction, as well as personnel turn over can affect repeat consumers as well as adversely impact future profits. One vital point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the opportunity to construct a returning client base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the local typical house income effect future earnings potential?