Listing ID: 77341
This painting contractor specializes in high end residential work in communities like La Jolla, Santa Luz and The Bridges. This is the chance for other contractors to break into these exclusive communities. Commercial work includes a variety of jobs with tenant improvements, exterior apartment complex painting, interior retirement community painting, etc. Variety of types and sizes of jobs throughout San Diego County. Seasoned crew with some employees working at the business for over 20 years. Revenue is very stable and profitability dipped in 2021 due to cost changes in labor and supply chain issues that resulted in painting jobs with lower margins that what has historically been experienced. This dip is confined to the 2021 numbers and the pricing model has been updated the reflect the increased costs. Typical expected profitability of the business is 15% of Revenue to SDE and this is expected to continue for 2022.Crew leaders and manager in place. Current owner is responsible for bidding new jobs.
This is the perfect add on to an existing painting company, with 20 new employees and 10 vehicles, you can double your revenue overnight! Labor is hard to find, so tap into this existing network of seasoned painters and use the established name of the company to boost sales and attract better talent. The current painting backlog is approximately 3 months and the 2022 YTD numbers show an increase in revenue in profitability in what is traditionally a slow first quarter.
- Asking Price: $300,000
- Cash Flow: $150,000
- Gross Revenue: $1,350,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:20
- Furniture, Fixtures and Equipment:N/A
Small leased yard and office space in central San Diego. This space is staffed with a few office staff, but is mainly storage space and a small yard space for the vehicles
Current owner wiling to transition the new owner for 45 days and be available as a consultant for up to 12 months.
Extremely well established business and loyal base of employees. This company is known for quality work and is a pillar in the painting industry. Over 3 months of backlog reaching into May/June.
The company was started in 1980, making the business 42 years old.
The company has 20 employees and is located in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nonetheless, the genuine reason and the one they say to you might be 2 totally different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of various other reasons. This is why it is extremely crucial that you not depend absolutely on a vendor's word, but instead, utilize the seller's response along with your general due diligence. This will paint a much more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering points like stock, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be fulfilled or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract new consumers? Often times, businesses have repeat customers, which create the core of their day-to-day earnings. Particular aspects such as brand-new competition sprouting up around the location, roadway building, and staff turnover can influence repeat clients and also negatively influence future earnings. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood average household income influence future revenue potential?