Seller Financing Available
Colorado General Construction with Recurring Rev, 1.8M Rev, 376K Net
CO Construction, Recurring Rev. $1.8MM Rev, Lower SP of $700K
Colorado Springs, CO
General Construction, Abatement, and Roofing Company South of Denver, CO
June Update: They just lowered their price to $700K with a $500K down payment as part of the sales price. They could have hired a 2nd project manager and choose not to finding a very comfortable size around $1.75MM where they make an adjusted EBITDA of $350K. They can be bigger very easily with the addition of a 2nd project manager because they already have the work being referred to them. The current owners are brother and sister and are family oriented people and she is wanting to pull back her hours even further(or sell). The recent hail damage will keep them very busy until October and a new owner can get in there and benefit from this high margin work if they move quickly. They are offering this at less than a two times earnings and it has steady recurring revenue from insurance companies. Recurring revenues is always worth a bigger multiple than two times. The biggest risk in construction has always been if will there be business there a year after the closing and this company has already established relationships with both insurance companies and third parties that send them business every day which will not stop post-closing. These relationships will send them business anywhere making this expandable and therefore much more valuable to an owner willing to finance the growth.
The trailing 12 months earnings as of May 31, 2014 were $366K on sales of $1,756,282. The earnings for 2013 were $357,397 on sales of $1,736,751. A new owner can add a 2nd project manager which would allow the next 12 months to be $1.9MM in revenue with at Least $400K in Earnings.
They are established with a great reputation already in their community and with the insurance companies and individuals that refer business to them. They are as busy as they can be with only one project manager who is also one of the owners. He will stay post closing if the new owner would like him to.
This company has a very high percentage of recurring revenues because it gets its customers from insurance companies and 3rd parties that refer work to them. This business would be easy to expand throughout the front range of Colorado with the work just waiting because of their relationship with the insurance companies. This creates predictable growth which should demand a higher premium to their earnings than they are asking.
The Sales Price is $725,000 with the Seller willing to carry a portion. The sellers are 50/50 owners with one being the project manager and the other being the main administrator. Both will stay as long as the new owner would like them to. No construction experience is necessary. They will train you and help you get your licenses.
They are just starting to get commercial roofing referrals and expect this to contribute to their 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 Non-disclosure Agreement (NDA): http://companybroker.com/buyer-profile-jeff.htm
Email firstname.lastname@example.org or call Jeff Chapman at 303-905-7607 to discuss the business after sending in the non-disclosure agreement through the link in the previous sentence.
We install all types of roofing, gutters, 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 $1.9MM as insurance companies send us more work.
We get the vast majority of our work from insurance companies and have added more while increasing our standing with the others each year. They send us all kinds of work all year round including during 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 third party that refers water mitigation and water damage claims for us to repair. Alacrity is still another that we have preferred status which 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 also have started getting referrals from 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. Insurance referral work is steadier and more profitable than the traditional ways of growing and it takes years to get approval, be activated, and now relied upon as we are now. In fact, we are now on the "Cat" team(catastrophe team) with Contractors Connection which has taken us years to achieve. 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 currently totaling $200K that will benefit a new buyer. They expect to have a great summer and fall for 2014 because of recent hail damage which has resulted in an increasing amount of referrals that they are getting from the insurance companies. Referrals include general construction, abatement work from pipes freezing, fires, hail, and other jobs that originate from regular claims.
Since 2008 we have completed hundreds of new roofs, insurance mitigation jobs, etc. and have never had one complaint that we didn't fix right away. 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 superpages.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 Warrantees 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 just had some hail which will increase their numbers for the year but Colorado is still overdue for a big hail storm. Forrest fires can be bigger than hail and are happening more often also.
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 our insurance company referral relationship. It is a business that could sell franchises. We would like to expand initially by adding an office in Denver and a satellite office in South Eastern Colorado where they always get hail and where we have done many jobs in the past.
TV Advertising: We have run television commercials that we will identify in the sales packet. Phone Book/Super pages: We have (3) Full-page yellow page Ads in the phonebook with another advertisement on the Front Cover. Further, we are in superpages.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 water mitigation certification).
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 21% net profit margin. In short, for a variety of reasons we cash flow more than what our competitors cash flow. Please click on the NDA link in the first paragraph to 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 use subs that are well-trained and licensed cleaners for abatement work and whom are 100% loyal to the company and save us money in liability and payroll taxes.
The sellers will stay on as long as the buyer would like them to. They will guarantee a comfortable transition of employee, vendor, and customer relationships and agree to continue to work afterward. Again the seller is carrying 35% 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 Warrantees to a solid legal and business standing.
Asking: $700,000 with $500,000 down or $675,000 all-cash offer. They will be keeping their cash and AR net of AP and transfer the business debt free.
Please use the NDA link http://companybroker.com/buyer-profile-jeff.htm to get the full sales package or Email or Call for Information: email@example.com or call Jeff Chapman any time at 303-905-7607 to discuss your interest in this offering.
If you are NOT interested in this business for sale, but you refer someone to us who buys it, we will immediately pay you a referral fee of $5,000. Please send us anyone who you think would be interested in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
For 20 Years, We Sell Businesses "Quickly and Quietly"
999 18th St Ste 3000
Denver, CO 80216