Listing ID: 76638

Business Overview

Founded in 2000, this twenty-year-old architectural and structural steel manufacturing business is part of the high end construction sector in Western Colorado. The company fabricates, erects, and installs steel framing studs and metal roofing components. The Business employs a large, experienced work crew who expertly handle all services provided.
Generally, work is obtained through a bidding process, in competition with a few other competitors. This business’s bids, on available projects are based on fair and equitable market values. Because this company is a full service business, where all aspects of a job are performed, most contracts are won by this company. Competitors do not offer the array of services this Business provides. The majority of work is done in nearby mountain resort towns covering high-end residential work, General Contractor requirements, and Business requisites. The Company also works with neighboring contractors, businesses, and homeowners as well.

Financial

  • Asking Price: $2,490,000
  • Cash Flow: $1,150,000
  • Gross Revenue: $6,100,000
  • EBITDA: $1,000,000
  • FF&E: $450,000
  • Inventory: $500,000
  • Inventory Included: N/A
  • Established: 2000

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:15,000
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Business operates from a 15,000 sq ft building, located on a 40-acre property. 75% of the main building is utilized with office space, employee areas, storage, shop, and production areas. The remaining 25% of the building is available for expansion. Outside of the main building is 40-acres of land containing large open storage areas and modest storage buildings, capable of handling an exceptionally large inventory of steel products used in the industry. The Real Estate can be purchased.

Is Support & Training Included:

The owner will remain active during a designated transition period, then will continue to be available for any assistance needed.

Purpose For Selling:

Owner plans to retire from this industry.

Pros and Cons:

This Business operates in a region where little competition exists. Because of this, the Business operates comfortably, as there is always work available. Competitors in the area are rarely able to extend the complete array of services offered by the Business.

Opportunities and Growth:

To facilitate expansion, new ownership could acquire a Beam Line System for steel fabrication, to increase productivity. Developing a website, creating a marketing plan, and utilizing social media would be beneficial in the pursuit of additional commercial work.

Additional Info

The business was started in 2000, making the business 22 years old.
The transaction won't include inventory valued at $500,000*, which ins't included in the requested price.

The company has 25 employees and is located in a building with approx. square footage of 15,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell companies. Nonetheless, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is very vital that you not count completely on a seller's word, but instead, make use of the vendor's solution together with your total due diligence. This will repaint a more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that earnings margins are too tight. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in brand-new consumers? Many times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Certain variables such as brand-new competitors growing up around the location, road building, and also staff turnover can affect repeat consumers as well as adversely affect future incomes. One crucial point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the chance to construct a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the local average household income influence future income potential?