Listing ID: 77348
Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: https://pronovapartners.com/engagement/profitable-9-year-old-florida-window-and-shutter-firm-for-sale/
Our client’s offering, is a cash positive, profitable, pass through business of nine year’s standing. It represents a golden opportunity to expand an already profitable well-respected company in an exploding market. Our client is located in Florida and serves all of Collier and Lee Counties; i.e., Naples, Ft. Myers Beach, FT Meyers, Marco Island, Bonita Springs, and Estero. Our client sells hurricane shutters and screens, impact doors and windows. There is very little ongoing cash outlay for this profitable business, nor is cash tied up in inventory. Customers make cash deposits upon order and pay upon completion. 90%+ of products ordered by customers are made to customer specifications by a qualified third party on a net 30-day basis following delivery. Our client does not manufacture the products they install and only orders products after receiving specific customer orders and deposits. The Company rents warehouse/office space and vehicles so there is very little capital outlay for this excellent and profitable business. The firm has a stellar reputation and receives many referrals.
Our client operates with a profitable, cash positive business model.
The company sells hurricane shutters and screens, as well as impact doors and windows. All products are made to customer specifications by a well-qualified reliable third party. Company does not manufacture any of its products.
The company takes orders with a 30 to 50 % down payment, and places the order with its vendors. When the vendor fulfills the order and the products have been received, the payment terms established with 95 % of the suppliers are net 30. The Company installs the product usually within a week of receipt, collects the remaining balance from the customer, and pays supplier within established terms (net 30). Our client rents warehouse and office space, as well as vehicles. There is very little capital outlay for this profitable business.
Customer service agents document any problems and immediately schedules service if the required fix is simple. If an issue is more complicated, Customer Service sets an appointment with the customer and a technical sales rep who takes it from there.
The company is driven to provide excellent customer service, with integrity, doing it right the first time. The company provides the right product to meet customer needs out of multiple products from various suppliers. They are not locked into selling an in house made, branded material. The Sellers believe in operating with integrity in all business relationships both with customers and suppliers and doing it right to meet customer requirements.
This approach has succeeded, starting from a zero base 9 years ago, to an expanding company that has been profitable very year since its inception.
NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
- Asking Price: $2,100,000
- Cash Flow: $699,397
- Gross Revenue: $2,228,597
- EBITDA: $271,821
- FF&E: $15,000
- Inventory: $25,000
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
A leased 1500 sq. ft office/warehouse. The Lease is annual and expires in January. The Security Deposit is for 1 month. The business has been at this location for 4 years. There are 5 parking stalls.
As needed – specific terms for transition support can be negotiated. The Seller wishes to facilitate a successful and smooth transfer of the Business.
The Owners wish to retire.
The company’s business model in which they do not manufacture, but rather orders its products from suppliers, to Customer specifications is a serious advantage over that of any of its competitors. With minimal inventory and positive cash flow, The company is in a position to realize excellent profits with little risk. The closest three competitors are manufacturers of the products they sell. This means they have a high overhead to deal with and large dollar amounts tied up in materials and product inventory, and likely cash flow issues that are not unusual in manufacturing.
The company enjoys an excellent reputation in the various communities it serves, with customers so comfortable with the firm that they invite company sales reps into their homes. The Sellers tell us: “If we were in our 30’s, we would be a $10,000,000 company.” There is every indication that the company will continue to operate in a profitable mode, while grooming newer employees as needed for growth. To ensure long-range goals are reached, the new owners should plan to continue with the very successful business model currently in place, and expand on it.
The venture was founded in 2012, making the business 10 years old.
The transaction doesn't include inventory valued at $25,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell businesses. However, the genuine factor and the one they say to you may be 2 completely different things. As an example, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other factors. This is why it is extremely vital that you not count absolutely on a seller's word, however instead, make use of the vendor's response together with your total due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that revenue margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new consumers? Often times, operating businesses have repeat clients, which develop the core of their day-to-day earnings. Specific variables such as brand-new competition growing up around the location, road building, and staff turn over can impact repeat consumers and negatively influence future profits. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the chance to develop a returning consumer base. A final thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average home income effect future income prospects?