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Denver Door & Window, Millwork & Hardware, UP IN EARNINGS & REVENUES!

Denver, CO (Denver County)

Seller Financing Available
Denver Door & Window, Millwork & Hardware, UP IN EARNINGS & REVENUES!
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Asking Price: $1,175,000

Cash Flow: $623,000

Gross Revenue: $8,400,000

EBITDA: $623,000

FF&E: $135,000

Inventory: $90,000

Rent: $9,262 /Month

Established: 1998

Denver Door & Window, Millwork & Hardware, UP IN EARNINGS & REVENUES!

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Business Description

(This company is currently under and LOI which allows us to continue to market but we can't accept any other offers until the LOI expires)

Update: Two changes have occurred. 1) For several permanent reasons, their profit margin has increased significantly in 2019. I valued this based on their 2018 properly adjusted earnings which were 514K. Their trailing 12 months earnings are $623K through July 31st and most importantly most of that has come from 2019 and they are seeing record orders currently. They now expect 2019’s earnings to finish above 650K. This would cause an increase in price of close to $200K or more. 2) Their landlord is going to raise their lease rate to a current market rate when it expires in 2020. The amount that they are currently paying is below market. The company leases 3 of the 5 warehouse units in the same building. The Sellers can easily consolidate the 3rd warehouse storage into the first 2. This would result in an increase of 60K per year in rent. In short, their earnings are up 100K and they now know their rent will rise by 60K next year. We have decided to leave the price the same. The next change will most likely be up sometime in the fall as they expect a very big finish to the year.

This is a 21 year old company that sells windows, pre-hung doors, millwork, and hardware. They have a door and window assembly shop. The sales team is a very experienced group helps with planning and design from blueprint to the order process. The customer base is 30% light commercial and 70% custom residential remodeling and building.

The earnings for the trailing 12 months through July 31st were 623K from revenues of 8.4M. 2018 were 514K on revenues of 8.2M. This company is being offered at less than 2X their trailing 12 month earnings and only 2.28 times their 2018 earnings.

The company’s revenues come from long term customers that pay in a timely manner. They have approximately 80% in recurring revenue from long term customers. They also have a full pipeline of signed work. You must see the video interview in the data room above to fully understand how good this opportunity is.

The sales price is 1,175,000 plus a negotiated value for their inventory which is currently estimated to be around 90K. The sales price includes their FF & E including a lot of equipment.

The two active owners will assist with the transition and training.

Location: Denver, CO

Brief Overview and Selling Points:

The company sells windows and doors that are customized to their customer’s needs. Their major suppliers are major manufactures with national name recognition. They have a custom mill shop and pre hang interior and exterior doors. They also mill and do value added work on windows. They also sell a large variety of trim and millwork products needed for both new and remodel construction. They deliver to job sites as requested. Their customers are contractors, developers, and retailers.

The company is currently owned by two owners whom are active in the day-to-day management and operation of the company. There are currently eighteen excellent and reliable employees. Many of them have been with the company for longer than 5 years. All of the employees are very skilled in their respective positions. They have commission based sales people. The 2 working partners are retiring and will help in transition.

The company is an “S Corp” with a great reputation with excellent customer service. They have a stellar worker’s safety history and has never had a legal issue. The company enjoys an extremely low workman’s comp rate due to only one small claim over the last five years.

Marketing/Growth: The buyer could increase revenues by hiring additional salesmen, implementing an advertising and marketing program, and by getting more involved in social media. Plus, the Sellers will not only help with the transition of employee, vendor, and customer relationships but also has a wealth of knowledge and many ideas of how to further grow the business. In short, they are committed to help the new owner take the business to the next level.

The company is centrally located and close to several major roads. They have a lease in a large commercial building with plenty of parking. It has a large loading dock, upgraded electrical and offices with room for growth.

Financial Information:

Asking: $1,175,000 sales price. They will keep their cash and AR/AP. The business will transfer debt free.

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 $2,000. Please send us anyone who you think would be interested in this offering.

Sincerely,

Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

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. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Location:
Denver, CO
Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
17,000
Lease Expiration:
N/A
Employees:
18
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The company is centrally located and close to several major roads. They have a lease in a large commercial building with plenty of parking. It has a large loading dock, upgraded electrical and offices with room for growth.
Competition:
The company sells windows and doors that sometimes are customized for their customers. Their major suppliers are from major dealers that are sometimes customized for their customers. Their products are supplied and warrantied by leading manufactures like Windsor, Marvin Windows, Amsco Windows, and Therma-Tru Doors to name a few. They also sell a multitude of pre-hung doors and any products that are needed for doors and frames. The company sells to both Contractors and retail trade
Growth & Expansion:
Marketing/Growth: The buyer could increase revenues by hiring additional salesmen, implementing an advertising and marketing program, and by getting more involved in social media. Plus, the Sellers will not only help with the transition of employee, vendor, and customer relationships but also has a wealth of knowledge and many ideas of how to further grow the business. In short, they are committed to help the new owner take the business to the next level
Financing:
10%
Support & Training:
The two active owners will assist with the transition and training.
Reason for Selling:
Retiring
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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Sponsoring Broker:
Paul Olsen

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