Business Overview

– Company offers general contracting and construction services to several growing niches of the commercial and residential market including ADA accessibility, age-in-place modifications, medical;
– Company classified as ‘essential services’ was minimally affected by pandemic: 2019 revenue =$1.27m, both 2020 & 2021 = $1.35m; 3-yr average SDE = $363k.
– Powerful recurring county government contracts establish ongoing work projects;
– Strong cash flow from consistent revenues;
– Well-trained non-union employee team will assist a turn-key transition;
– Large client base generating recurring projects.

Target buyer:
–an area contracting/construction firm wanting to gain additional employees, clients, services and expand market share in the Metro region;
–a regional contracting/construction company wanting to gain a solid, growing foothold in the Minneapolis marketplace;
–an entrepreneur (likely a C-level manager or mid-level manager within a similar company) seeking to grow a company with the assistance of a seasoned industry professional.

Financial

  • Asking Price: $1,100,000
  • Cash Flow: $363,000
  • Gross Revenue: $1,353,000
  • EBITDA: N/A
  • FF&E: $120,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 1984

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

400/sf office. New location will be needed by Buyer post-sale.

Is Support & Training Included:

Seller will assist in the buyer’s successful transition.

Purpose For Selling:

Carefully planned transition reduces Seller’s responsibilities.

Pros and Cons:

Expanding market. Limited competition; company has carved a niche by providing solid, dependable, expert and timely contracting/construction services; governmental contracts in-place.

Additional Info

The venture was started in 1984, making the business 38 years old.
The transaction shall include inventory valued at $2,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. However, the real reason and the one they say to you may be 2 entirely different things. For instance, they may state "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in incomes, or a variety of various other factors. This is why it is really vital that you not rely absolutely on a seller's word, but instead, use the seller's response in conjunction with your total due diligence. This will paint an extra realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that profit margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new clients? Most times, businesses have repeat clients, which develop the core of their everyday profits. Specific aspects such as new competitors sprouting up around the area, roadway building and construction, and also employee turn over can affect repeat clients and also negatively affect future profits. One vital thing 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? Clearly, the more people that see the business on a regular basis, the better the opportunity to construct a returning client base. A last idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Just how might the local typical house earnings effect future revenue prospects?