Listing ID: 82543
Over 30% Sales growth is holding steady! Situated in Florida, listing specializes in waterproofing, repairs and restoration for residences and condos, split 50/50. From walkways, balconies and floors, to support beams, roofs and structural, they repair steel, wood, concrete, masonry and stucco projects. In addition, they offer mold assessments, painting, and other services. Started in 1984, the company presents tremendous growth opportunities for buyers with State’s General Contractor & Roofing Licenses, as significant upcoming projects have developed. Through a one-year labor warranty and streamlining, business commands the Construction/Residential (80%) & Commercial/Industrial (20%) markets, with plans to further their place in the industries. Experienced personnel of 7 nonunion employees and two subcontractors will remain on board and dedicate full-time to ongoing operations as owner agrees to stay for a few months’ transition period. Targeting to meet or exceed last year’s gross sales for 2022, Revenues reached $1,182,379 in 2021 alongside Discretionary Earnings of $213,378 and an Adjusted EBITDA of $149,183, based on an independent evaluation! While the company utilizes a virtual office used for phone calls and meeting clientele, they do lease a building of 2,500 square feet with a warehouse space and administration office as well. Company has strategically optimized its relationships with large projects seen every year; new ownership would do well to increase sales efforts and contractor relationships to further develop the company. Apart from a website and social media engagement, advertising efforts use Google Profiles and Angie’s List, plus back up referrals from a large and recurring customer base through quality service.
- Asking Price: $250,000
- Cash Flow: $213,378
- Gross Revenue: $1,182,379
- EBITDA: $149,183
- FF&E: $65,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1984
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Property measuring 2,500+/- square feet is Leased.
Subcontractors to remain full-time through a few months’ Owner Transition period.
Approaching retirement and/or pursuing other interests.
The venture was started in 1984, making the business 38 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. However, the genuine reason and the one they tell you might be 2 completely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be justifications to attempt to hide the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is extremely important that you not count completely on a vendor's word, however instead, make use of the seller's solution combined with your overall due diligence. This will repaint a much more sensible image 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 need to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new customers? Many times, companies have repeat customers, which create the core of their day-to-day profits. Certain factors such as brand-new competition sprouting up around the area, roadway building, as well as staff turn over can influence repeat consumers as well as adversely impact future profits. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the higher the possibility to develop a returning customer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the local mean household earnings impact future earnings potential?