Business Overview

Great opportunity to acquire a long established, full-service, construction and restoration company. The Company is a leader in their field and serves both commercial (20%) and residential (80%) clients. New business is attained via word of mouth referrals, online high ranked positions in Google, Houzz, and Angie’s list, and organic online searches. Highly respected, this licensed contractor sets themselves apart by their reputation for providing uncompromising professionalism, top notch customer service and attention to detail.

INVESTMENT HIGHLIGHTS:

• Organic Growth
• Location

GROWTH OPPORTUNITIES:

Since the 2020 pandemic began, homes have transitioned into makeshift offices, gyms, classrooms, and more. With so many homeowners spending more time at home, the desire to create cozy, functional, and beautiful spaces seem to be on the rise. Market trends point towards industry growth spurred by COVID-19. Below are identified opportunities for near-term growth:

• Business Development: Currently, the owner is the only salesperson. Adding commissioned salespeople to be a physical presence in targeted markets could increase revenue significantly, without much added expense.
• Geographic Expansion: There is huge growth potential in expanding the service area, minimally increasing the project budget, and widening marketing activities.
• Marketing: Increasing the Companys online presence and leveraging the existing client base with expanded marketing efforts could strengthen the company’s revenue.

Financial

  • Asking Price: $795,000
  • Cash Flow: $349,943
  • Gross Revenue: $2,289,887
  • EBITDA: N/A
  • FF&E: $47,516
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2016

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:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will train to ensure a smooth transition

Purpose For Selling:

Retirement

Additional Info

The company was founded in 2016, making the business 6 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell businesses. Nevertheless, the true reason vs the one they tell you might be 2 absolutely different things. For instance, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other factors. This is why it is very essential that you not count totally on a vendor's word, yet instead, utilize the vendor's response together with your overall due diligence. This will repaint an extra reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that revenue margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new consumers? Most times, businesses have repeat consumers, which develop the core of their everyday revenues. Particular elements such as brand-new competitors growing up around the area, road building, and staff turnover can affect repeat clients and negatively affect future revenues. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the greater the chance to develop a returning client base. A final thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the regional median household earnings effect future earnings prospects?