Listing ID: 82519
Business Overview
High growth, strong margin, interior finishes contracting company. Servicing a 50-mile radius in Northern AZ for 30+ years, triple-certified specialty contractor and retail store offers a wide range of installations and quality products such as flooring, cabinetry, shower enclosures, backsplashes, countertops, closet systems, and window treatments. Included in the Asking Price is real property zoned for commercial use on the main thoroughfare of the town and a large retail showroom facility. Virtually a zero-inventory business, supply is typically available within a few days of project orders. The business has been capitalizing on the ongoing construction and home-remodeling market explosion. With Arizona experiencing an extended boom in the contracting industry, and a myriad of nationwide migration factors, this company continues to be fueled by growth. Listing enjoys predominant referrals and a repeat-customer base, as well as a strong legacy reputation throughout its surrounding communities. The company has strong staff in place and the Owner agrees to assist in a smooth transition. Current financials showcase consistent growth; 7% increase in 2019, 19% in 2020 (despite the pandemic), Revenues for 2020 exceeded $3.1 Million alongside Discretionary Earnings greater than $600,000; proving itself a promising buy as Pro Forma Gross Revenue projections for the year-end of 2021 climb to $3.5 Million along with $600,000 in Discretionary Earnings. Based on an independent evaluation.
Financial
- Asking Price: $1,745,000
- Cash Flow: $633,000
- Gross Revenue: $3,141,775
- EBITDA: $502,765
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1988
Detailed Information
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,600
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Listing price includes Real Property, current Equipment, and Inventory. Business established in 1988 and acquired 2006.
The owner is available for a reasonable transitioning period.
Pursuing other interests.
Additional Info
The company was established in 1988, making the business 34 years old.
The company has 8 nonunion. employees and is situated in a building with approx. square footage of 3,600 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. However, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or an array of various other factors. This is why it is very vital that you not rely absolutely on a vendor's word, yet rather, utilize the seller's answer in conjunction with your overall due diligence. This will paint an extra sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover points like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that earnings margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday profits. Certain aspects such as new competition sprouting up around the area, road building, and also personnel turn over can impact repeat clients as well as adversely affect future incomes. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the possibility to construct a returning client base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the local typical family income impact future revenue prospects?
