Listing ID: 81538

Business Overview

This second-generation family-owned business has been selling and installing residential replacement windows, doors, roofing and siding in and around DuPage County for over 84 years and has earned a reputation for quality, service and integrity from over 10,000 customers and 16,000 installations. They offer design consultation and state of the art, energy efficient products from well-known manufacturers. The owner handles the sales and estimates, and subcontractors do the installations. Their certified professional installers are licensed, bonded and insured. This company has earned 5-star customer satisfaction ratings and have unwavering customer loyalty. Over 50% of their sales are from repeat customers. The BBB states that they have the most years of experience in their category with the fewest complaints.

In 2021, the business had annual sales of $1,195,148 with a projected $1,366,413 of 2022 revenues. SDE (seller’s discretionary earnings – the historical, normalized cash flow for an owner to pay himself and service debt) was $206,975 in 2021 with 2022 SDE projected at $270,921.

A typical SBA deal with a 10% down payment and a $437,000 10 year term loan (including SBA guarantee fee, closing costs and working capital) at 6% would result in annual free cash flow (after SBA debt service and after paying the buyer a $140,000 annual salary) of $67,000, with 2022 tracking even better.

For more information on this business, please complete the attached Non-Disclosure Agreement and email it to William J. Geary, President of Hi-Gear Business Brokers, LLC (William@Hi-GearBusinessBrokers.com).

Financial

  • Asking Price: $449,000
  • Cash Flow: $206,975
  • Gross Revenue: $1,195,148
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1937

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,740
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Beautiful showroom (210sf), offices (330sf) and warehouse (1,200sf)

Is Support & Training Included:

Owner will train and support to ensure a smooth and successful transition.

Purpose For Selling:

Retirement

Pros and Cons:

Strong presence with no major competitors in the local market area.

Opportunities and Growth:

Sales would increase dramatically by using more salespeople and social media.

Additional Info

The company was started in 1937, making the business 85 years old.

The building is leased by the business for $1,800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell businesses. Nonetheless, the true reason vs the one they say to you might be 2 totally different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is really important that you not count entirely on a vendor's word, but rather, use the vendor's solution together with your overall due diligence. This will repaint an extra reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items like stock, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that earnings margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be met or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new customers? Often times, companies have repeat consumers, which create the core of their everyday profits. Particular elements such as brand-new competition growing up around the area, roadway construction, as well as personnel turn over can influence repeat consumers and negatively impact future incomes. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the chance to develop a returning consumer base. A final idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the regional mean family earnings impact future revenue potential?