Listing ID: 82553
Business Overview
Situated in Northern California, listing specializes in quality contract roofing products; from single ply, built-up asphalt and gravel, to metal, shingle, wood and tile materials among others. Benefited by proper experience and strong referrals from returning clients, company also offers highly-rated repair services and warranties on labor (3 years) and manufacturing (20 years). Headquarters is a prime 10,000 square foot production facility that features ample parking, 6,800-sq.ft. of pre-manufacture and storage areas, as well as 3,200-sq.ft. of administrative spaces. Available for renewable lease options only, the property’s tenancy is $8,130 per month as it is found in excellent condition and commercially zoned to handle extra capacity for expansions. With no clients besides their main consumer making more than 2% of its income last year, company enjoys ideal flexibilities for strategy optimizations to further growth within their industry. Reliable superintendent can take on more work through streamlined operations, such as managing a personnel of eight non-contract employees and up to 20 union roofers hired per project. As team is most likely to remain post-purchase, buyer is free to be hands on with the job or stay absentee after a smooth transition period of three months to acclimate newer ownership. By maintaining an online engagement through their website, socials, and services like Yelp! or the Yellow Pages, marketing efforts also include sponsorships & community donations. Gross projections for 2021 reached to $6.5 Million, after Revenues for 2020 totaled $5,604,231 alongside Seller Discretionary Earnings of $1,200,000 and Adjusted EBITDA’s of $1,043,819. Based on an independent evaluation
Financial
- Asking Price: $4,200,000
- Cash Flow: $1,200,000
- Gross Revenue: $5,604,231
- EBITDA: $1,043,819
- FF&E: $1,500,000
- Inventory: $25,000
- Inventory Included: Yes
- Established: 1940
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Business was Founded in 1940; Inherited 1990!
Smooth Transition period of 3 months to acclimate newer ownership
Approaching retirement and/or pursuing other interests.
Additional Info
The company was founded in 1940, making the business 82 years old.
The deal does include inventory valued at $25,000, which is included in the asking price.
The company has 8 n/u & 20 union employees and is situated in a building with approx. square footage of 10,000 sq ft.
The property is leased by the business for $8,130 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. Nevertheless, the true reason and the one they tell you might be 2 totally different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is very important that you not rely entirely on a vendor's word, but instead, utilize the seller's solution together with your general due diligence. This will paint an extra practical image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that profit margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new clients? Most times, businesses have repeat consumers, which create the core of their everyday profits. Particular elements such as new competition sprouting up around the location, road construction, and employee turn over can influence repeat consumers and also adversely influence future revenues. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the chance to develop a returning customer base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the local mean family earnings influence future revenue potential?
