Listing ID: 77149
A booming two brand home remodeling company. With two prime retail locations in upscale South Orange County, they offer a complete line of design services, materials, and installation for all home construction needs: kitchens, baths, flooring, extensions, etc. They are the one-stop shop for premium home remodeling projects! They started in 2011 at the original showroom, then expanded to the second location in 2019, which is in a spectacular high traffic, high visibility location and has been operating for 25+ years. Combined, the locations generate $3.5M+ in revenue and $900K+ in profit! Business is (always) booming – their customer base is primarily walk-in, repeat clientele, referrals, and new customers from their minimal marketing (direct mail only).
The company employs 6 sales reps (4 at the new location and 2 at the original location). These in-store reps work with the customers to flesh out their job requirements. Then, an estimator goes out to the job site for measurements and the final estimate is prepared. Once signed, customers pay 50% deposit and the materials are ordered. The actual remodeling is performed by company’s army of well-established subcontractors that cover all the necessary trades.
The owner has hit retirement age, so it’s time to pass the torch on to a Buyer who can take this successful company to new heights. There is a lot of room to expand by advertising, both digital and traditional. The owner plays an active role in the business including supporting the sales team and performing in-home measurements to give the final quote. SBA financers will require prior experience and a GC license.
-A premium business, with premium margins. They are a fully licensed, bonded, insured, professional organization who serves upscale homeowners.
-Beautiful, professional showroom presence seals the deal for many homeowners.
-Home remodeling is an industry where customers like to touch and feel the materials.
-Network of subcontractors includes 10 who are dedicated full-time installers, and 20 are part-time installers. Their network is very robust, subcontractors are experienced and covers all the trades.
-Clean books and records.
This is a great opportunity to acquire a thriving, highly profitable company with long history and a great track record for a great price. If you have construction experience and are looking to be your own boss or are already in the industry looking to expand this is the opportunity for you. Interested? Reach out to the Agent today!
- Asking Price: $2,295,000
- Cash Flow: $946,792
- Gross Revenue: $3,510,707
- EBITDA: N/A
- FF&E: N/A
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,584
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
Ask broker for more details.
Owner will train.
Retirement and health problems
The remodeling industry is huge! Harvard University projects it will be an astounding $352 billion strong in 2021, up from 2020's impressive $339 billion, and expected to reach $400B in 2022!
The business was started in 1996, making the business 26 years old.
The transaction does include inventory valued at $50,000, which is included in the suggested price.
The company has 16 employees and resides in a building with disclosed square footage of 8,584 sq ft.
The property is leased by the business for $17,569 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell companies. However, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or a variety of various other factors. This is why it is very important that you not rely absolutely on a vendor's word, but instead, use the vendor's solution combined with your general due diligence. This will repaint a much more practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points such as stock, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat consumers, which develop the core of their daily revenues. Specific elements such as new competitors sprouting up around the location, road construction, and personnel turn over can impact repeat clients as well as negatively impact future revenues. One crucial point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the regional typical household income impact future income potential?