$900K Down Gets $1.1M in Assets Debt Free, Cash Flows $750K on $5.1MM.

Denver, CO (Denver County)

$900K Down Gets $1.1M in Assets Debt Free, Cash Flows $750K on $5.1MM.

Asking Price:$1,300,000

Cash Flow:$700,000

Gross Revenue:$5,153,198

EBITDA:$700,000

FF&E:$520,000

Inventory:$620,000

Real Estate:$2,000,000*

Established:1979

*not included in asking price.

$900K Down Gets $1.1M in Assets Debt Free, Cash Flows $750K on $5.1MM.

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Business Description

Largest Colorado Steel Door/Awning Manufacturer. Absentee-Owned, Not Been "Pushe

The Sales Price of the company is $1,300,000 with at least $900,000 down the closing, the seller carries the rest for a qualified buyer.

This business will qualify for an SBA loan, but the buyer must have at least $400,000 of their OWN liquid available to put down.

2016 Cash Flow was over $700,000 on sales of $5,062,906. Please see the rationale for this estimate in the data room below.

The sale includes about $50,000 (depending on the close date) in accounts receivables and about $400,000 in assets, vehicles, and equipment. The sale also includes over $400,000 in awning inventory and another $200,000 in steel inventory. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE. The sale also includes 13 well-stocked vehicles and another $100,000 in the current value of a wide-variety of state-of-the-art operational equipment. This totals about $1,150,000 in assets. Please see the comprehensive list of all vehicles, equipment, and values for each piece in the data room below, which also contain the last 3 years of company financials and tax returns etc.

At a sales price of just $1,100,000, the owner is selling the company for about the net asset value of the company based upon the most recent balance sheet. Stated differently, the seller is NOT seeking a sales price of 3X’s or 4X’s the cash flow which is what most businesses sell for with assets of this value that are debt free, especially ones that are currently running at a fraction of their potential since the owner is absentee. The seller is highly motivated for personal reasons; the recent death of her husband of 45 years. This business is clearly worth well over $2,000,000, plus another $1,000,000 for the goodwill, and blue sky of a business that cash flows this much with a stellar reputation.

However, the seller is not greedy and just wants the right person to come in and, for the first time in 10 years, become on on-site operating owner. She also wants someone who can care for all her long-standing, loyal employees and bring fresh energy to the workforce since they have not had anyone in there for many years to drive the company forward. In short, she wants someone to grow her husband’s 37 year legacy forward now that he is gone.

The seller will stay on for 3-4 months 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. However, it must be made clear here that all office and manufacturing operations have been run by 2 key managers that have in their positions for “25 years now”, and love their jobs. They are both very well-paid, but they want and need someone to step into a “business development” role and be aggressive to cut costs, eliminate waste, raise prices (ASAP), and attempt to grow sales which no one has ever really attempted to do.

What We Do: We manufacture and sell exceptional retractable awning is, solar shades, custom window well covers, handcrafted steel safety railings, and steel security doors to our Denver customers for the last 37 years. All bar products are locally manufactured and installed by addenda beast, in-house crew. We are the largest independent company of this kind ‘west of the Mississippi’. We do it all in this area, whereas other companies just provide 1 or more of these services, but not all of them like we do.

Reason for selling: The owner is age 72, and after 10 years of owning the company after her husband a severe medical problem 11 years ago, she is now ready to retire. Also, she knows that being an absentee-owner is never a good idea for a business of this size with the potential it has. It needs a more full-time operating owner, she feels.

YOU MUST see the 45 minute video interview with both owners in the data room.

This link is the data room with all company financial information and multi-media video interview with the owner. The video interview with the seller is critical to see to fully understand the offering.

It is critical to understand that this business has been operated from the beginning (SINCE 1979) by the founder. 11 years ago his wife, (the current owner and seller) grabbed the reins and did the best she could to manage things from that point forward. However, she has always been a registered nurse by trade and has had no business experience or experience managing people or any other form of business operations. In fact, the business has been virtually run absentee-owned for the last several years since she has spent a great deal of time in Phoenix with her daughter. During 2014 and 2015 the seller really disengaged from the business since her husband was terminally ill and ultimately died in 2015. The company was maintained by an office manager running the office, and a production manager running the 20,000 ft.² shop. However, as most people know, no one cares as much about a business as the owner, and without the owner at the switch, at least part time, things do not run as efficiently as if the owner were watching the place. This is what we need today and the 2 key managers completely agree. In fact, as they both state in the video, the strongly seek someone to grab the reins and bring energy, direction and new excitement to the company.

It is my professional opinion and the opinion of the owner/seller, Sue, that a new owner can purchase the business and step to dramatically improve the sales and overall profits of the company going forward. In short, we need to cut costs where there has been a great deal of waste and dramatically increase sales. The sales packet and video contains a great detail on how best his can be done.

Wow!! After 37 years in business, BBB Accredited and “A+” rated. We have "0" unresolved complaints. I fact we have many positive reviews.

Reason for sale: We want to be VERY clear about the reason for the sale. First, the business is in excellent and solid standing with all employees, customers and suppliers. We have had NO legal battles, No OSHA violations, just 2 worker injuries, and have absolutely now “ghosts in the closet” whatsoever. We are financially solid with over almost $1,000,000 in shareholder equity on the balance sheet at the date of closing. Please email if you have any specific question(s), path forward, or have potential interest in a phone all or face-to-face meeting with the owner/seller.
Our locations: (3 locations) 1) Metro Denver: (sales and manufacturing) 2) Colorado Springs, (sales office, we lease this space from another landlord.) 3) Littleton, CO. (sales office, we lease this space from another landlord.) The main business is operated out of 20,000 square-feet of fully functional space within 2 buildings that the seller owns and pays about $96,000/year in rent to herself. She is open to lease the space or sell the property for FMV – depending on what the buyer seeks.

No sales and marketing efforts: The seller has made absolutely NO efforts to grow the company in the past and have been handicapped by having NO sales and marketing manager to grow the sales The seller is 100% confident that a new owner could double the sales and triple the cash flow within 3-4 years with some level of sales and marketing management. We have a few salesman, but it is clear that without an experienced, sales-oriented person to motivate and push the group, sales will never grow. This is something we have never had in all our 37 years. YOU MUST SEE THE VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS.

No Seasonality of Work: One of the best characteristics is that there is very little seasonality or monthly ups-and-downs of gross sales and cash flow in our industry. We are NOT like a landscaping company that makes all of its money 7 months a year, and the other 4-5 months, where they're standing around waiting for the spring to come. In the winter it can slow down a little, but there are many things that be pursued during the relative lull periods. See the video on these details also.

Representations and warranties of the company's overall standing: The company is in excellent standing. As stated above, we have NOT had 1 complaint 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 1 OSHA violation. We have had just 2 workmen's comp. claims and have an excellent safety record. Both of these claims fall off of our insurance premiums next year, and will result in an estimated $25,000/year in premium costs going forward. We take worker safety very seriously and the seller is 100% committed to sign a contract that provides for a solid protections of the buyer in all of these areas.

The Front Range, Colorado is 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 fasted-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.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Not included in asking price
Building SF:
20,000
Employees:
45
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Financing:
Seller will carry up to $400,000 if in a first position.
Reason for Selling:
at age 72 seller wants to retire.

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Paul Olsen

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