2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.

Denver, CO (Denver County)

Seller Financing Available
2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.
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Asking Price: Get Financing: $2,400,000

Cash Flow: $1,200,000

Gross Revenue: $5,200,000

EBITDA: $1,200,000

FF&E: $200,000

Inventory: $100,000

Real Estate: N/A

Established: 2002

2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.

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Business Description

Includes $850K in Assets Debt Free, Just $1.6M, 3 years Cash Flow Ave. 750K.

2018 Cash Flow over $1.2M on $5.2M, Includes Over $850K in Assets Debt Free, Just $1.6M Down at Closing.

The seller will carry $800,000 of the $2,400,000 sales price. Therefore, he expects just $1,600,000 down at closing and the rest will be paid through the future income of the business. Also, the buyer gets over $850,000 in assets debt free.

Located South Central Denver.

The deal includes approx. $625K in accounts receivables/cash and $200k in assets/inventory completely debt free. We are a large $5M/Yr. (2018) Commercial Stucco, Stone and Masonry Exteriors company for sale. (We do mostly multi-family housing condo and apartment complex work.)

The Sales Price of the company is $2,400,000 but the seller will carry up to $800,000 of that sales price for 3-4 years for a qualified buyer. This business will qualify for an SBA loan, but the buyer must have at least $600,000 of their OWN liquid funds available to put down.

2018 Cash Flow expected to be over $850,000 on sales of close to $5M
As of 8/20/18 Cash Flow was $663,337 on sales of $3,617,133
2017 Cash Flow was $673,915 on sale of $4,155,681
2016 Cash Flow was $535,273 on sales of $3,391,178

Ask for all company financials for the past 5 years including tax returns.
The sale includes ½ of all accounts receivables (about $600,000), $25,000 in cash, and over $200,000 in assets, vehicles, and state-of-the-art equipment to perform all forms of work. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE. This totals about $825,000 in assets. Please see the comprehensive list of all vehicles, equipment, and values for each piece in the data room below, which also contains the last 4 years of company financials and tax returns etc.

The seller will stay on for 3-4 months (or however long the buyer wants) to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.

Critical Points to Understand:

Reason for sale: After 25 years of working, the seller is moving out of state and wants to take a break.

The (new) owner will cash flow over $850,000 in 2018. The seller seeks $1,600,000 down at closing, and the sale includes over $825,000 in assets at the closing, completely DEBT FREE. The seller is carrying almost 100% of the goodwill, blue sky and intrinsic value of the company. The balance of $1,000,000 will be paid through the cash flow of the business over the next 3-4 years.

The new owner will need NO working capital to take over and grow the company starting day-1 simply because the seller is leaving behind about $600,000 in “current accounts receivables and $25,000 in cash. Normally, when someone buys a company they need to take out a $500,000 line of credit or have $200k-$300k cash infused to run the company or perhaps $500K or more to hire more people to grow the company out of the gate. Not the case here, since the seller is leaving this level of working capital and NO DEBTS at all.

The owner has held the company back and has always been content with $400K-$600K in annual cash flow. Please see the video above where the seller states that they turn down more than “1-2 X’s what they take on at any time”. stated differently, if the new owner wants to take on $10,000,000 in work in the next 12 months, it is there for the taking. “Denver has been a hay-day for the past 8-10 years, and there is no end in sight”, the seller states. Our customers are constantly pushing us to take on more work and do a wider variety of the work that we now do NOT do, such as masonry, stone, block, metal panels, and siding etc. We pretty much just do stucco and some small-scale stone work. Last month we turned down a highly-profitable $11M job that was handed to us. We hand off this work to other contractors all the time. Our existing and long-standing customers love our incredible quality and reliability, that they are really pushing us to be “one-stop-shopping” for them, vs. having to work with 2-3 different companies for their siding and exterior work.

There Are "NO" Negative Disclosable Items: Representations and Warranties of the Company's Overall Standing. The company is in excellent standing. There are “no ghosts in this closet”! As stated above, we have NOT had 1 complaint about work completed that we did not fix and we have never failed on a job in any respect. When something has gone wrong in the past or wasn't done correctly, we have fixed it on our watch and our dime. 100% of our customers have been completely satisfied in every respect. We have had no legal battles or lawsuits or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to signing for Reps and Warrantees that provides for a solid protection of the buyer in these areas.

We do: Commercial Stucco & Stone, Residential Stucco & Stone, Construction Defect Repair, New Stucco Installation, ½” & ¾” Stucco, EIFS, Synthetic Stone. In recent years our average job is about $200,000. We have don many jobs in the $500,000 - $1,000,000 range. Very few companies have the history, trust, and experience to be awarded jobs of this level. It took years, but we have earned the great spot we are in. In fact, a great portion of the work we do these days we do not have to even compete or bid for. It is ours to have, it is negotiated work. This means we submit an estimate and it is almost always granted to us assuming we don’t gauge

We have exceptional in-house teams who specialize in construction defect repair, new stucco installation, EIFS, and synthetic stone. We hire trusted subcontractors with whom we have established relationships, ensuring they are vetted, insured, and aligned with our mission.

There is no “seasonality” or substantial monthly sales and cash flow swings. It is hard to believe that even though we are a construction exteriors company, you would think we are somewhat dormant in the winter months and thrive during the 8 warmer months, that is NOT the case at all. We work all-but 7-10 days a year. In short, our November – March monthly sales and profits are roughly the same as the other 7 months of the year, and it has always been this way.

Finest Reputation: In terms of quality of work, we have the finest reputation and strongest working relationship with all contractors and customers. We always meet or exceed the specifications for each job. We have a BBB rating of “A+” and have NEVER has 1 complaint filed.
Our website is only 2 weeks old, meaning we cash flowed $673K last year and will do over $900K cash flow this year without any form of past web presence. A new owner can really bring our company into the 21st century with better branding, web and social media presence and overall business professionalism to bring the company to the next level.

Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 10% of our gross sales. A quick look at our accounts receivables report in the above data room shows that we don’t have “too many eggs in 1 basket”. When we DO have 15%-20% in a given customer work, please understand that is because we have a big job going with them. However, we don’t have the same big customer each year – it changes each year. This ensures we are never vulnerable to losing a lot of sales because 1 -2 given customers slowed down. In short, we have dozens and dozens of different contractors/companies who love working with us and the work we do, and many other sources of revenue and customers in our mix.

Wow!! After 23 years in business, BBB Accredited and “A+” rated AND Gold Star Status. We have "0" complaints. See link below

Our Great Employees: we do use some level of sub-contractors during busy times, however, in general, we have 42 great employees to ensure the finest quality work over the years. Most of our competitors exclusively use sub-contractors to do all fieldwork. The problem with this is obviously is maintaining quality for the customer, but just as importantly, how can you be sure the subs will be available to perform on a given job to get the job done on time? We have the best office and field workers in the business and the average tenure 10-15 years. In short, we never lose workers because they are paid above-market wages and they love what they do, it’s that simple.

New Owner Skills Needed: The new owner will require no specific construction experience since our workers know how to run themselves. However, it is encouraged that the new owner should take the time to be a full-time, hands-on manager/operator (at least for the first year to learn the business). He/she should have good management skills, know how to work with people, be highly motivated/high energy, strong with financials, be aggressive in general, and want to grow the business going forward. The seller is very desirous of finding someone to take over the business and take it to the next level, where it is projected to go.

The Ownership Transition: The new owner does not need to understand the bidding process or even be able to create bids, since we already have a great estimator that’s been with us and secures all our work. Good news, we have already identified an excellent replacement for the owner, he is a subcontractor of the Company for many years and has an excellent ability to run the field and all the workers. Moreover, he is very well known in the labor market/field in this industry and will be able to bring on as many workers as the new owner will need as they grow the business and even double or triple the gross sales in the next several years. Simply put this new field manager/foreman can get all the workers needed to grow the business as fast as it grows.
No sales and marketing efforts: The sellers have made absolutely NO efforts to grow the company in the past and have been handicapped by having NO sales and marketing employees to assist in bringing in new business. The sellers are 100% confident that a new owner can double the sales and triple the cash flow in 2-3 years with new sales and marketing efforts. Or just take on more of the work that is being asked of us already as mentioned above. YOU MUST SEE THE 45-MINUTE-LONG VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS.

In short, this is all a new owner would need to do to double the sales and cash flow. A new owner could pursue this effort or simply take on more work from existing customers that are being asked of them currently, or preferably do both.

A New Owner Could “Easily” Double the Sales and Cash Flow Within 2-3 Years: It is a “hay day” in the Front Range of Colorado. The entire metropolitan area ranging from Fort Collins all the way down to Pueblo Colorado is nothing short of explosive growth and is one of the top 3-5 metropolitan areas in the United States for growth and expansion. Please see the articles below or any articles you can Google would indicate we are in the top 5 metropolitan areas on a consistent basis over the last 4-6 years. As a result, there is all the work you want from our customers as well as many other customers that call us on a regular basis that we turn down because we are simply saturated with our current workload. The seller has gone on record in the video enclosed, clearly stating that a new owner could very easily double the sales, gross profits and net income over the next 2 to 3 years and would only need desire to grow, dedication and perseverance. It is likely the new owner would need more workers, materials and other direct costs associated with the additional sales, however, with a very low overhead and debt free equipment, a tremendous amount of the incremental sales fall to the bottom line.

Licenses and Permits: The new owner needs no specific licensing or permits, etc. The company has all the licenses needed to operate going forward. The new owner would be required to maintain existing city licenses

Please email if you have any specific question(s), the path forward, or have potential interest in a phone call or face-to-face meeting with the owner/seller.

The Big Picture: The Front Range, Colorado is the fastest growing city in the US. Denver is going CRAZY! Simply put, Denver and the entire Front Range of Colorado is nothing short of the fastest-growing areas in the US. The macro story for construction and overall growth is extraordinary and has been this way for the past 5 decades. Ever during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the US and in the past 3-5 years had exploded forward faster than almost every other major city in the US.

Colorado is the best State in the country to own a business and is the "#1" fastest growing and strongest economies in the United States, per Money.MSN 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. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in 2015-2017.

Colorado is #1 for Economic Growth in the US says US News and World Report ahead of New Hampshire and Minnesota. https://www.usnews.com/news/best-states/rankings

http://denver.cbslocal.com/2017/02/28/colorado-economy-u-s-news-and-world-report/

http://www.metrodenver.org/research-reports/economic-forecasts/2017-economic-forecast/

http://www.denverpost.com/2016/12/05/colorado-economy-growth-2017/

https://www.bizjournals.com/denver/news/2017/02/02/colorado-ranked-among-the-top-states-for-1-year.html

https://www.bizjournals.com/denver/news/2016/12/20/colorado-in-the-top-10-for-population-growth.html

http://www.denverpost.com/2016/05/19/colorado-population-growth-far-outstripped-new-housing-census-says/

https://www.usnews.com/news/best-states/articles/2017-02-28/attracting-young-skilled-workers-drives-a-states-economic-growth

The Denver-Aurora-Broomfield metro area was also rated first among the 375 metros.

Here is Area Development's top 10 U.S. "Leading Locations" for 2016: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Building SF:
N/A
Employees:
45
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Financing:
Seller will carry up to $800,000
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Paul Olsen

Business Listed By:
Paul Olsen

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