Seller Financing Available
CO Gen Contractor, Mostly Recurring Rev, $2MM Rev, $500K in 2014
CO Gen Contractor w/ Recurring Revenue, $425K CF, and $2MM Rev
Colorado Springs, CO
Construction, Abatement, and Roofing in CO offered at under 2X Net Income. Cash Flow for 2013 was $398K on Sales of $1,791,751. The next 12 months is Expected to be Over $2.2MM in Revenue with at Least $500K in Cash Flow/Net Earnings. The Business is Extremely Profitable, Growing, and 100% Debt Free! General Construction, Fire and Water Abatement, and Commercial/Residential Roofing with Over $200K in Backlog that is Growing Daily with Long Term Recurring Revenues. This company does General Construction, Fire, and Water Mitigation as their highest gross margin work through many insurance companies including being on Contractor Connections Catastrophe Team which means that USAA claims from the Colorado fires are partially going to them. They have been inundated with work that will last well into mid 2014 at high margins. They are mostly General Construction which means that since these will be insurance claims that they will be busy well into next year rebuilding also. This is a combination of signed work and work that will be signed very soon(before a closing) waiting for a buyer that can move quickly. There is a pro forma that comes with the sales package that outlines what they expect . They are looking for $625K down on a sales price of $825K They are established with a great reputation already in their community and with the insurance companies that refer work to them. They are only one of only 10 companies in their area that do fire and smoke abatement work. They are selling for under 2X their trailing 12 month earnings with enough work to increase their revenues by 20% over the next year. Lots of Recurring Revenues because this Business gets its customers from big Insurance Companies that Refer Work to them. This Business would be easy to expand throughout the Front Range of Colorado with the Work just Waiting. Growing and predictable revenues should demand a much higher premium to their earnings than they are asking.
The Sales Price is $825,000 with the Seller willing to Carry 25%. The owner will stay on and keeping some equity for the right buyer. No construction experience is necessary as long as you keep the owner on until you get your licenses which is easy. They are just Starting to get Commercial Roofing Referrals and Expect this to Contribute Nicely to their Future Growth. Location: Colorado Springs, CO
Please request the full sales package containing a detailed Data Room and Comprehensive Video on the entire operation and a full interview with the owners by clicking on this
secure web link to the Confidentiality Agreement (CA): http://companybroker.com/buyer-profile-jeff.htm
Email firstname.lastname@example.org or call Jeff Chapman at 303-382-1926 to discuss the business after sending in the Confidentiality agreement through the link in the previous sentence.
Brief Overview and Selling Points: We install all types of roofing, gutters, and do water and fire abatement and general repair work for insurance companies creating steady year-round revenues. The next 12 months sales are expected to be at least $2.2MM as more insurance companies that we have recently been approved to do work for send us more work. See the video interview with the owner to get a better understanding of how big this will be. We are recession proof. Throughout the past 5 years we have grown and improved our profitability. We have added several insurance companies that send us all kinds of work including in the winter when roofing slows down. We are a preferred contractor with Triage who represents Allstate, American Family, Farmers, the Armed Forces, etc. and sends us various types of claims that require our services. We are also a preferred provider for Code Blue who is another 3rd party that refers water mitigation and water damage claims for us to repair. Alacrity is still another that we have preferred status with and refers roofing work to us from Allstate roofing insurance claims being filed. This is a very profitable way to grow our business because we do not have to maintain an expensive sales force. We close over 80% of those referrals. We are also approved for Contractor Connection which refers USAA and Nationwide which could double our business alone within a short period of time. We are a Genflex certified firm and we “inspect” every one of our installations, which is not the norm in our industry. It is steadier and more profitable getting our work from the insurance industry which takes years to get both approval and be activated as we now are. They just started doing commercial jobs late last year and are just starting to get commercial referrals from 3rd party insurance referral companies like Triage. They estimate this could add $500K per year. The business has $137,243 in current book value equipment and vehicles. They also have approximately $11,000 in inventory which is included in the sale. They have a large backlog of work. They usually see things slow a little over the winter months and didn’t see a slowdown this winter or expect one in the future because of the increasing amount of referrals that they are getting from the insurance companies. These referrals include general construction, work from pipes freezing, fires related to fireplaces, and other jobs that originate from Winter conditions.
Since 2008 we have completed hundreds of new roofs, insurance mitigation jobs, etc. and have never had one complaint. From the beginning we have been A-rated with the BBB with no complaints and have a perfect track record. We have a 5 star rating through super pages.com which is determined by customer feedback. We were just awarded "remodeler best roof of the year" by Contractors Connections. We also have a stellar worker’s safety history without one claim ever and we enjoy the lowest insurance and workman’s’ comp rates available due to our “perfect” safety record. The seller will agree to full Reps and Warranties to a solid legal and business standing. Colorado is growing and healthy economies compared to the majority of the Country right now. Roofs are replaced every 8 to 15 years in Colorado. We have extreme freezing and thawing, strong continuous winds, and more importantly hail storms. Hail storms are unpredictable but history shows we get several every year and big ones every 2-3 years on average. Big hail storms can bring in $1MM plus in business and keep us busy for 3-4 months. Colorado is overdue for a big hail storm. Fire can be bigger than hail and is becoming a yearly event also. This year we expect the fires to keep us busy well into next year which will benefit a new owner. Marketing: We have a very effective way to market and grow our company through insurance companies and companies that refer insurance work. “The work just comes to us”. We also have real estate agents, appraisers, and adjustors that continuously refer work to us and we are adding to our referral network every month. We entered the roofing market 5 years ago without any connections and have literally grown our business from $0 to $2MM in revenue in just 5 years. The new buyer can either grow this company organically throughout the front range by taking advantage of our insurance relationships or grow us vertically by buying other roofers and then taking advantage of both their clients and the insurance companies. It is a business that could sell franchises. We would like to expand initially by adding a Denver office and a satellite office in South Eastern Colorado where they always get hail and we have done many jobs in the past. Phone Book/Super pages: We have (3) Full-page yellow page Ads in the phone book with another advertisement on the Front Cover. Further, we are in super pages.com and on several online weather pages. Our company uses 5 immediately identifiable clean ‘bright yellow’ professional-looking vehicles with logos, uniformed employees, and very classy brochures. Our roofing company is an IICRC Certified firm (special roofing certification) and members of the Colorado Springs Apartment Association. The average Gross Profit on jobs in the roofing industry is 15% - 20%. We, however, enjoy a 40% Gross Profit margin which translates to a 20% net profit margin. In short, for a variety of reasons we cash flow almost 2 X’s what our competitors cash flow. Please request the sales package to see the 40 minute video detailing exactly how we have steadily held this cash flow over time. We use only the finest materials and have a great relationship with our suppliers including the rights to use the pink panther logo representing Owen Corning which supplies roofing and insulation among other items that we use. We have strong supplier relationships which have taken years to develop. We enjoy the lowest costs, best service and highest quality products from our diversified group of suppliers. The business has the finest employees in the industry, the seller insists. We also have well-trained subs who are 100% loyal to the company and save them money in liability, health and payroll taxes. The sellers will stay on as long as the buyer would like them to including long term. They will guarantee a comfortable transition of employee, vendor, and customer relationships and agree to continue to work afterward. Again the seller is carrying 25% of the gross sales price and has a tremendous commitment and financial interest to ensure a smooth transition. The seller has a wealth of knowledge and many ideas to grow the business. In short, they are committed to help the new owner take the business to the next level. The new owner will step into very strong reoccurring cash flow from solid relationships with individuals and insurance companies that send millions in work to them every year. We have the finest reputation in the area and have no complaints or legal battles. We are high exposure with strong brand recognition. Our name is trademark protected. The lease is below market with a low maintenance landlord who will let the new buyer either renew annually or commit to something long term. The current rent is $2500 per month for 4000 square feet of updated usable space with 2 parcels of land included that we could use if we need to. The sellers are fully committed to sell either the 'Stock' or ‘Assets’ of the business and will agree to full Reps and Warranties to a solid legal and business standing.