Listing ID: 81388
This contracting business has been serving the contractor and home owner community in Northern California for 25-years, providing high quality interior and exterior stucco work, delivered on time. The business was founded in 1995 by the current owner, and has expanded and contracted in size to comply with industry demand, the economy, and currently the owners desire to work fewer hours. Headquarter on a two-acre parcel just outside the Bay area, the business is poised to handle the expected boom in housing starts this decade. The business has built a strong reputation over the years for delivering quality jobs at a fair price with excellent customer service. The company enjoys a unique position in that it has long established relationships with commercial and residential contractors. The owner currently works between 10-30 hours per week, depending on the number of jobs going at one time. He oversees jobs, takes care of the bookkeeping and payroll through a service, and works with suppliers to purchase job materials. There are currently 6 full-time employees, and the business hires additional employees depending on the number of jobs going at one time, and work load. The owner has decided it is time to retire, and hence is selling the business. This is a great opportunity for an existing contractor business to expand, or for an individual to take this business to the next level.
Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or contact Charlie Fox at 916-201-6687 or email Charlie@mabusinessadvisors.com to receive a confidentiality agreement and learn more about this opportunity.
- Asking Price: $749,000
- Cash Flow: $507,000
- Gross Revenue: $924,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:21
- Furniture, Fixtures and Equipment:N/A
Business is located in a prime area, with plenty of room for expansion A fenced yard with several buildings for storage
Seller will provide training at no cost to qualified buyer.
Other Lath and Plaster businesses.
Plenty of growth opportunity through bidding more jobs.
The business was founded in 1995, making the business 27 years old.
The business has 21 employees and resides in a building with approx. square footage of 1,500 sq ft.
The real estate is leased by the company for $2,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nonetheless, the real factor vs the one they tell you may be 2 completely different things. For instance, they may claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competition, recent reduction in revenues, or an array of various other factors. This is why it is really vital that you not rely entirely on a vendor's word, but instead, use the seller's solution combined with your total due diligence. This will paint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover items like stock, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their everyday profits. Specific elements such as brand-new competitors sprouting up around the location, road construction, and also personnel turnover can affect repeat customers and also negatively affect future revenues. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to build a returning consumer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional mean household income impact future earnings prospects?