Business Overview

Based in Nebraska, this commercial carpentry subcontractor specializes in the construction of senior living facilities, hospitals, schools, and multi-family residential projects. These market segments are traditionally less impacted by market and economic volatility normally experienced in the construction industry. The company has a more than six months of scheduled work backlog. The company provides a full scope of installation services to most of the country’s largest national and regional General Contractors. For over 10 years, they have built a strong reputation of quality craftmanship and efficiency, with a committed team and a get-it-done attitude.

Financial

  • Asking Price: $1,400,000
  • Cash Flow: $465,000
  • Gross Revenue: $5,000,000
  • EBITDA: $465,000
  • FF&E: $150,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 2010

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:40
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Existing owner would be willing to continue for a period with the new owner to ensure a smooth transition

Purpose For Selling:

Owner has other business interest and cannot devote the time to grow this one.

Pros and Cons:

Specializing in this market niche has allowed the company to be successful with little competition in the geographic area.

Opportunities and Growth:

With a full schedule and 6+ month backlog, this company is fast paced with untapped growth potential and endless opportunities to expand its geographic reach, offer additional services, and develop the team.

Additional Info

The business was founded in 2010, making the business 12 years old.
The deal shall include inventory valued at $150,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. Nonetheless, the genuine factor and the one they tell you might be 2 completely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or an array of various other reasons. This is why it is very essential that you not count completely on a seller's word, however rather, make use of the vendor's solution together with your overall due diligence. This will paint an extra practical image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract new customers? Most times, companies have repeat consumers, which develop the core of their day-to-day profits. Specific variables such as new competitors growing up around the location, roadway construction, and employee turnover can affect repeat customers and also negatively impact future earnings. One essential thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to develop a returning client base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the local median home income impact future revenue prospects?