Business Overview

“Family” is the word that best describes this General Contracting business. Not only because it was started by a husband and wife dream team, but because of the bond they have developed with their customers, suppliers and contracting teams.

Focusing on custom home design, remodels and renovations, and commercial development, this commitment to family has led to their success as their growth is 100% attributed to word of mouth referrals.

To be successful, the new owners will need to continue this approach of relationship-based business practices, have an eye for design, be up-to-date on construction code, and be able to develop, manage, and track a project timeline and the needs of the vendors supporting it.

Current ownership is committed to ensuring that all relationships are transitioned over to the new buyer, allowing them to springboard off the goodwill they have developed in their 17 years in business and 35 years in the industry.

Opportunities for growth include expanding the current marketing and sales efforts beyond word of mouth and vertically integrating one or more of the services currently being offered by the company.
The business has been family owned and operated since day 1. It was officially incorporated 17 years ago, but is based off of the owner’s more than 3 decades of experience and connections in the industry.
The relationships built with their customers and vendors provide separation from their competitors.

Opportunities for growth include expanding the current marketing and sales efforts beyond word of mouth and vertically integrating one or more of the services currently being offered by the company.

Financial

  • Asking Price: $325,000
  • Cash Flow: $160,000
  • Gross Revenue: $800,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $25,000
  • Inventory Included: N/A
  • Established: 2004

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:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The business was founded in 2004, making the business 18 years old.
The transaction doesn't include inventory valued at $25,000*, which ins't included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nevertheless, the true factor and the one they say to you might be 2 absolutely different things. As an example, they might state "I have too many other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in revenues, or a range of other factors. This is why it is really important that you not count completely on a vendor's word, but rather, utilize the vendor's response combined with your general due diligence. This will repaint a more realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover things like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in new consumers? Most times, companies have repeat clients, which create the core of their day-to-day profits. Certain aspects such as brand-new competitors growing up around the area, roadway building and construction, as well as staff turnover can affect repeat consumers as well as negatively affect future profits. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the higher the chance to build a returning customer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the regional mean household earnings impact future revenue prospects?