Business Overview

A young married couple’s flipping business grew exponentially thanks to a fresh outlook and lots of hard work to become what is now a strongly branded multi-faceted residential and commercial construction and development company. 2021 closed out just shy of $10 Million in gross revenue.

As they became more successful, the scope of projects grew and now include custom home building. By forming a partnership with the area’s most influential real estate firm, they have plotted strategic purchases for the residential development of lots and acreages. Meanwhile, the commercial and remodeling sides have been spun off to trusted associates who license the use of the Company name and continue its traditions of quality and innovative design. All of the Company’s acquisitions have a purchase order attached.
Although launched in 2011, the Company’s catchy name is now synonymous with quality and home-grown success.

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Detailed Information

Facilities: No facilities. The company is based in a new, well-located commercial strip mall. The space hosts the administrative offices and is part showroom as well. Rent is $2,400 per month.

Competition: The Company is one of the youngest builders in the area. Some owners of businesses that have been around for a long time (name recognition being the only advantage) are over 70 years old. Some have already retired in the Covid climate, others are expected to close or sell off soon. Offering superior customer service and presenting modern designs for younger buyers have made a huge difference in gaining market share.

Growth & Expansion: One project underway is a 27-unit townhome community. Several other multifamily projects are on the horizon. Additionally, in the last two years, many clients have been moving from out of state with nearly one-third of the portfolio being built for clients from California. Making additional land acquisitions will be the most direct route to increasing revenues.

Financing: TBD if structure and terms are acceptable.

Support & Training: To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed.

Reason for Selling: A sale will generate capital needed to maintain growth and reduce lender fees.

Financial

  • Asking Price: N/A
  • Cash Flow: $750,000
  • Gross Revenue: $10,000,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2011

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

No facilities. The company is based in a new, well-located commercial strip mall. The space hosts the administrative offices and is part showroom as well. Rent is $2,400 per month.

Is Support & Training Included:

To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed.

Purpose For Selling:

A sale will generate capital needed to maintain growth and reduce lender fees.

Pros and Cons:

The Company is one of the youngest builders in the area. Some owners of businesses that have been around for a long time (name recognition being the only advantage) are over 70 years old. Some have already retired in the Covid climate, others are expected to close or sell off soon. Offering superior customer service and presenting modern designs for younger buyers have made a huge difference in gaining market share.

Opportunities and Growth:

One project underway is a 27-unit townhome community. Several other multifamily projects are on the horizon. Additionally, in the last two years, many clients have been moving from out of state with nearly one-third of the portfolio being built for clients from California. Making additional land acquisitions will be the most direct route to increasing revenues.

Additional Info

The business was founded in 2011, making the business 11 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell companies. Nevertheless, the true factor vs the one they tell you might be 2 completely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of various other factors. This is why it is very vital that you not depend entirely on a vendor's word, but instead, utilize the vendor's answer in conjunction with your overall due diligence. This will repaint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that revenue margins are too small. Many businesses come 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 commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract brand-new consumers? Many times, operating businesses have repeat consumers, which create the core of their everyday revenues. Specific aspects such as brand-new competition growing up around the area, roadway building and construction, as well as employee turnover can impact repeat consumers as well as negatively impact future earnings. One vital point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning customer base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood mean home income influence future income prospects?