Mold-Water Damage Restoration Company

Camden County, NJ

Seller Financing Available
Mold-Water Damage Restoration Company

Asking Price:$620,000

Cash Flow:$300,000

Gross Revenue:$825,000

EBITDA:N/A

FF&E:$167,400

Inventory:$14,800

Established:2011

Mold-Water Damage Restoration Company

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Business Description

Enjoy 60% net profit in a recession proof industry!

In only it's 6th year in business, Eco Tech has established itself as one of the elite among the privately owned mold/water damage and emergency services
companies in the Philadelphia metro area. We have almost 150 A+ reviews online from previous clients, but most importantly......no negative reviews! In an era where over 75% of customers look for information about companies online before making a decision, this is incredibly important and valuable. Almost daily we hear from new customers who say "we read so many great reviews on line and knew we had to have you do our work". We pride ourselves in accountability, reliability and professionalism and it shows in how we are viewed in the community. And negative reviews cannot be taken down by a company that receives them, they stay on line until you either make good with the customer or they stay up forever. The best part about this company and this industry is we make money whether the Dow Jones is up or it's in the tank. Insurance companies pay regardless of how the consumer confidence index looks each quarter. And Eco Tech has only just begun to scratch the surface of it's potential here in the Philly Metro market. The best part of this opportunity is that the financial information provided is strictly for the high-margin emergency services such as water damage mitigation and mold remediation. If we were a ServPro franchise the gross revenue would be 150% more because all repairs/build-back services would be done in-house. We didn't want to get involved in putting sheetrock back, painting etc, but most other restoration companies do all of that as well. For the first 3 years in operation we would simply say "we don't do the build-back". Over the last few years we have been referring the build-back work out to a few remodeling companies and receiving 7-10% in cash referral fees. If you wanted Eco Tech to be a full-service emergency and restoration company then simply multiply our gross revenue by 2 (and that is being conservative) and that is what you would earn in 2017. We have been told, based on that information that we should list the company for 1.1-1.3mil. We don't see it that way, but it is an undeniable fact that if you purchase this company and have the ability to perform the full restoration services from start to finish, you are looking at 2mil+ in revenue in 2017. Of course the other incredible upside would be to turn Eco Tech into a franchise. We have been approached by a number of investors over the years that have told us we have the perfect model to convert to a franchise system, but we were always just too busy to contemplate that move. In hindsight, I wish I would have taken their advice. Now that we have done all the heavy lifting, perhaps franchising Eco Tech is the logical next step?

Attached Documents


Detailed Information

Inventory:
Included in asking price
Employees:
8
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The 1200sf main office is set in beautiful downtown Collingswood, NJ which is less than 10 minutes to all major bridges into Philadelphia. A 800sf warehouse is located 3 minutes from the office in the same town. The office is leased until 2017 for a very low monthly payment of $1442 (includes heating, cooling, hot water). The warehouse is paid for through 2017. Included in the asking price is $80,000 in water/mold mitigation equipment in very good condition as well as 4 work vans, a logo-wrapped light-duty SUV and a 27' box truck.
Competition:
Eco Tech is centrally located in a geographic area containing shore towns, urban and rural communities and a booming commercial environment. While every major metropolitan area will have a significant range of competition, recent trends towards using "local" businesses has given Eco Tech a noticeable advantage. The mega-companies such as ServPro and Paul Davis have seen their market share cut each of the past 4 years while locally owned private companies have increased market share. Clients really like the fact they are dealing with a local outfit.
Growth & Expansion:
Eco Tech has had 5 separate offers in the past 18 months to open up a new location in a franchise-like partnership situation. While we were intrigued by the idea of this level of expansion, the ownership felt it was more important to make improvements in operations and overall efficiency prior to making the jump to additional locations. If we were not considering other business opportunities that would allow more time for our families, now would be an excellent time to expand.
Financing:
Majority owner is open to remaining on as a minority partner.
Support & Training:
A combined total of 160 hours of transition support is offered and will be split between the two principal partners. Marketing and sales will be offered by the president of the company while the current Controller will provide training in operations and the financial tracking. The majority owner is open to remaining in an ownership position or as an employee.
Reason for Selling:
One of th partners has been having some non-work related health/family issues.
Business Website:
http://www.ecotechmold.com

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Business Listed By:
Tom McGuire

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