Business Overview

The company has grown through COVID to $5.1M in sales and over $0.9M of net profit in 2021. The company is listed for $4.995M. It has great relationships with about a dozen general contractors that do work for the government and is sought after for superior quality of work and the ease with which its employees can get into secure government facilities. About 50% of sales are for government projects with 20% being commercial and the remainder in the high end residential segment.

2022 is expected to be another year of growth and the owner is willing to stay on for two years to support the continued growth and a smooth transition.

Financial

  • Asking Price: $4,995,000
  • Cash Flow: N/A
  • Gross Revenue: $5,100,000
  • EBITDA: $900,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:25
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Owner willing to stay for two years to support continued growth and a smooth transition

Purpose For Selling:

Want to retire within the next few years

Opportunities and Growth:

Add employees and/or acquire a smaller competitor to allocate more heads to this company's high margin projects for an instant synergy.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. However, the real reason and the one they tell you might be 2 completely different things. As an example, they might state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or an array of various other reasons. This is why it is really important that you not depend totally on a vendor's word, but rather, make use of the seller's response along with your total due diligence. This will paint an extra realistic image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new consumers? Many times, companies have repeat clients, which form the core of their everyday revenues. Particular variables such as new competitors sprouting up around the area, roadway building and construction, and also staff turn over can influence repeat consumers and also negatively influence future incomes. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the opportunity to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional median household earnings impact future revenue prospects?