Seller Financing Available
Skylight Co in Colorado, 12 years old, 1MM Rev, and 482K Adj EBITA
Skylight Installation/Repair Co in CO, 12 Yrs old, 1MM Rev, 482K Adj EBITA, 17%
12 Year Old Colorado Front Range Skylight Repairs, and Installation Company
The 2014 revenues were $992K with an adjusted EBITDA of $421K. The adjusted EBITDA and revenues were both up more than 15% compared to the previous year. This makes the sales price of $985K which is less than 2 ½ times the adjusted EBITDA (very low for a company that is so established in its market).
The owner travels 2 ½ months of the year overseas and turns his phone off when he is gone. His voice mail gives a number to call for emergencies only which goes to his main installer who is not a sales person. The owner believes that the revenues would be at least 8% higher if he only took off 3 weeks of the year and answered his phone while he is gone. He is selling because he is moving to England and will stay to help with a full transition.
The Company has “the most feedback and highest rating” in this industry in Colorado, low overhead and payroll, high sales to installers ratio, low advertising expense, allows owner to take time off in the winter, and big growth potential.
The buyer will get approximately $60K in current value hard assets made up equipment, tools, and two trucks.
There are many growth opportunities like: hiring a sales person, doing more commercial jobs, adding advertising, selling skylights online, etc. The seller believes in quality workmanship therefore he choose not to have grown this business much larger and faster. He believes it has the potential to do $5MM in revenue. They have no outgoing advertising or sales calls. He uses their placement on the internet and relies on their reputation and customer referrals. You must see the video interview in the link above to listen to the owner explain that they would be doing a lot more business and that this should be easy for a new owner to grow substantially.
The new owner will not need any skylight experience. The company has 2 other employees that will stay that are capable of doing the installations. The seller trains people nationwide for Velux and is confident that he can teach the new owner the business.
Here is the link for the Non-Disclosure Agreement, “NDA”: http://companybroker.com/buyer-profile-jeff.htm If it is blue you should be able to click on it, if not please cut and paste that to a URL line and it will give you the NDA which will allow me to automatically send you the Full Sales Package containing a detailed data room with financials and a Comprehensive Video on the entire operation and a full interview with the owner by clicking on the secure web link to the NDA. After you fill this out and submit it, you may also call Jeff Chapman at 303-905-7607 or email me at email@example.com with questions or indications of interest.
The seller is asking for 985K plus inventory(estimated to be around $15K) with 75% down at the closing. He will be keeping his cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. It is an S Corp so this can be either a stock or an asset sale.
Brief Overview and Deal Points:
The buyer will step into a turnkey type of business with substantial upside growth potential. The business generates a steady stream of leads proven by the fact that the owner doesn’t spend money on a sales force or traditional advertising. Most of their work comes from 95% residential customers and only 5% commercial. The seller is very proud of both the quality of products/work that they provide and their customer service.
Growth and Expansion: The company could grow by adding a salesperson, increasing advertising, taking less vacation time, being less selective with jobs taken, and by doing more commercial work. The company spent less than $20K in advertising last year and grew by almost $100K in revenue. They have approximately a 2% of revenues in cost of advertising which is substantially below average for this type of company. This is just one of many ways a new owner can grow this business. He also tells every caller that he is not cheap and they must be willing to pay for a quality job which probably scares a lot of people away that would have been happy to hire and pay him. He is very selective in the jobs that he takes. He also used to sell skylights online through Ebay until late 2013. This created almost $100K in extra revenues but he decided he didn’t want to spend that much extra time. A new owner can restart online sales very easily. Plus, the owner can increase both the territory that he/she covers and can add new products. He could easily add windows, siding, roofing, and especially solar. In summary, there are many opportunities that will allow the new owner to take advantage of their reputation and grow this much larger.
The owner will sign a non-compete. He is willing to transition the business and can teach the new owner how to run the business and how to grow it. In fact, the business will not change one bit the day after the closing. Construction experience or aptitude is recommended but not required. There are no required specific licenses, the owner just pulls permits when they are required which he can teach the new owner how to do.
His main vendor has a large facility in North Denver and the relationship is transferable. He does not have to carry much inventory because of this. They offer the best products in the industry which have a 10 year product and installation warranty. The vendor might allow for a small line of credit which will increase over time as they get more comfortable with the new owner.
The business has very capable, trustworthy, competent, and reliable employees. They are paid a salary with a bonus. He is going to hire an additional installer in March to get ready for the busiest 6 months of the year.
He manages the business out of his basement. He recommends this to save money and because the owner will spend a lot of their time giving estimates and inspecting jobs. There is no need to have a lot of room for equipment and inventory. The equipment fits into the trucks and the inventory is only ordered for pending jobs and takes up very little space. He just does paperwork on his computer at his home. He likes to spend his down time between appointments at coffee shops or out doing normal things where he can answer his cell phone if a lead comes in. The new owner will be doing scheduling, estimating/bids, answering the phone, ordering materials, supervising some jobs, invoicing, issuing warranties, and marketing. He has a model that makes all of this very easy to learn.
They have a great reputation for safety, quality, and reliability. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are A+ rated with the Better Business Bureau and have been gold star winners 5 different years. The company is also highly rated on “Angies List” and have been awarded their super service award twice.
He spent big money several years ago creating franchising paperwork which he never followed up on. He believes he can set up other locations throughout the country using his model and they would all have very predictable growth and profits.
Plus, Colorado is the best State in the country to own a business. Colorado is the "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider in September 2014 article. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216
This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.
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Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.