Listing ID: 77574
Perfect business for a C39 licensed roofing contractor (C43 license helpful). Services include installation of new roofs, reroofing and repairs as well as skylights, gutters and waterproofing. One of the few contractors installing sheet metal roofs in OC.
• Good Tax Returns and pre-approved for SBA loan with 10% down and 10% seller carry.
• High profit margin due to high-end customers in coastal OC area.
• Approximately 90% residential and 10% commercial. No customer concentration!
• Approximately 45% new roofing and reroofing, 20% repair and 35% “other” including sheet metal, waterproofing and skylights.
• Aligned with some of the most prominent and highly respected vendors and manufacturers that provide their installers with education certifications and preferred installer status.
• Established relationships with manufacturers and vendor associations, Google ads, referrals from general contractors, homeowner association relationships, repeat customers and referrals from satisfied customers. 5-star YELP and Google ratings.
• W2 employees including highly trained and skilled foreman.
• Husband does bidding, customer management and oversees the technical side of the business. Wife answers the phones and does administrative functions (net is after paying a new person to do the administrative functions).
• Sellers are selling to focus on non-roofing business. Buyer must have someone with a C39 license (or qualified to apply for the license immediately). A C43 license would be helpful. Buyer must also have an experienced roofer to replace the seller husband.
• Home based with warehouse in service area. Office adjacent to warehouse also available.
For information, call Cathryn Vallevieni 714 389-6375.
- Asking Price: $1,750,000
- Cash Flow: $673,131
- Gross Revenue: $1,505,388
- EBITDA: N/A
- FF&E: $77,695
- Inventory: $20,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,558
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
1,880 warehouse in the service area for storing vehicles, equipment and supplies. Seller owns the building and will give a lease at buyer's option. Adjacent office also available to lease if buyer desires. (Business is home based for operations). (Home Based)
Both sellers will train 30 days at 40 hours per week. Buyer must have a roofing license or have roofing experience and apply for the license during escrow.
Focus on their non-roofing businesses which are requiring more of their time.
This Business Is Home Based
The venture was founded in 2007, making the business 15 years old.
The transaction does include inventory valued at $20,000, which is included in the asking price.
The company has 3 employees and resides in a building with disclosed square footage of 1,558 sq ft.
The property is leased by the company for $2,250 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. However, the real reason and the one they say to you may be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of various other reasons. This is why it is very crucial that you not rely totally on a vendor's word, but instead, make use of the seller's solution together with your total due diligence. This will repaint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that profit margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in brand-new consumers? Often times, businesses have repeat consumers, which form the core of their daily profits. Particular factors such as brand-new competition sprouting up around the location, roadway construction, and personnel turn over can influence repeat clients as well as adversely impact future earnings. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the greater the possibility to build a returning customer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the local average household earnings effect future revenue prospects?