Amazing Painting and Floor Coating Co. $213,163 SDCF

Denver, CO (Denver County)

Seller Financing Available
Amazing Painting and Floor Coating Co. $213,163 SDCF

Asking Price:$790,000

Cash Flow:$104,397

Gross Revenue:$2,060,408

EBITDA:$239,242

FF&E:N/A

Inventory:$69,000

Established:N/A

Amazing Painting and Floor Coating Co. $213,163 SDCF

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Business Description

Make money day one in this Painting, Floor Coating and Cabinetry Co.

The Potential:
The business net cash flow has averaged 7% growth over the last 5 years. They have a customer base of over 2,000 clients. In 2015 the seller’s discretionary cash flow (SDCF) was $213,163. They project a gross profit of $660,726 for 2016. They have assets in excess of $69,000.

The Business Model:
*Painting, Floor Coating, Cabinetry*
This home finishing company started a residential painting and floor coating business. After several years building their painting brand, the owners saw tremendous opportunity in adding commercial painting & floor coating and cabinetry services as well. The diversity of services maximizes profits and minimizes marketing and branding costs by offering 3 complementary services all under one umbrella brand. Each service has a similar business structure and generates leads for the other two services. Homeowners and commercial real estate owners investing in the look, functionality, and durability of a space often commit to several projects at once.

Floor Coatings:
The owners see a tremendous potential for growth in the floor coating service. Concrete coating is a relatively new industry and it is growing at an astronomical rate. Licensing requirements in the industrial coatings industry along with the specialized training requirements make the professional floor coating services much less vulnerable to the DIY population. This is a chance to own a company who already has an established reputation, market share, and relationships in this field.

The owners invested considerable resources to become the go-to company for professional floor coatings throughout the Denver metro area, Boulder, Colorado Springs, and Larimer County. The business installs highly-rated and proprietary floor coating products. It has secured licensing and certification to install these products throughout much of Colorado. The license & certifications will transfer to the new owners. The growth opportunity in this industry must be emphasized. Floor coating services currently accounts for about 40% of the business revenue. They primarily work on garages, patios, hangars, retail spaces, and storage facilities. They project that the biggest growth opportunities will be in commercial areas.

Painting:
They have positioned their painting services to cater to homeowners and commercial real estate owners who are more concerned about quality and service than price. Painting interior and exterior walls remains lucrative and accounts for about 50% of the business. While many painting companies operate seasonally, this company keeps painting crews working year-round. Offering painting services on interior spaces during the winter months increases revenue opportunities. It also keeps employee turnover lower. By retaining their top performing crews it saves considerable resources in recruiting, hiring, training, and testing new painting crews. As a result, their customers consistently get a great service.

Cabinetry:
Painting and flooring customers requested cabinets enough that the owners decided it would beneficial to add cabinetry as a service. The business owns the rights to sell a cabinet system that includes a fun, user-friendly software system. Using the software, customers see a computer rendition of how the cabinets will look in a space prior to making a commitment to buying them. It reduces the customer risk, which increases sales. The cabinetry service accounts for about 10% of current revenue.

Labor:
The partners act as president and CEO. One of the partners is willing to stay on for six months as a paid employee to help transition the company to new owners. This should be enough time for the new owner to hire and train a manager or to take on the responsibility himself/herself.
There are 10 full time W-2 employees. These employees include 6 highly trained specialty technicians on flooring. The other 4 are involved with sales, operations, administrative duties, and management. The company employs many more 1099 skilled laborers. In the summer, they have about 8-12 painting crews. Although they try to keep the crews busy all year long, they usually reduce their 1099 staffing by about 30% during the slower months.
The company outsources their human resourcing, payroll, workers comp & employee benefits programs to a professional employer organization, or PEO.

Ready to Start Making Money?
The current owners have built a solid business and brand from scratch. A skilled and motivated new owner would be earn revenue well over the 2 million dollar mark in revenue. This is a perfect opportunity for someone already in the painting or floor covering business to expand their revenue streams. It would also be perfect for someone with an entrepreneurial spirit who wants to skip over the hurdles start-up businesses face. If you want to learn more call TODAY!! Ask to speak to Jay Spencer, Business Broker.

Detailed Information

Inventory:
Included in asking price
Employees:
10
Facilities:
Lease with option to renew.
Competition:
Floor coating provides 40% of gross revenue. The potential of new commercial deals has an unlimited upside potential. The company has a carved out a market share in another state as they continue to expand! Painting is 50% of GR. A 5 year pro forma of future GR and Cash Flow can be provided to any potential buyer. The pro forma services as a blue print to stay on an upward trajectory.
Growth & Expansion:
The diversity of services maximizes profits and minimizes marketing and branding costs by offering 3 complementary services that allow this amazing profitable company to earn revenue during "slow months" of the painting industry. Cabinetry painting and floor coating for garages, basements and commercial floors keeps this painting company in high demand all year round.
Financing:
Negotiable
Support & Training:
Seller is open to training for 6 months. Wow!

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Jay Spencer

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Jay Spencer

Denver Business Brokers Intermediaries

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