Dominant Socal Residential/Comm'l Floor Coating Install + Real Estate

San Diego, CA (San Diego County) (Relocatable)

Seller Financing Available
Typical Garage Floor With Custom Cabinets Provided By Our Partner
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Asking Price: $285,000

Cash Flow: $120,000

Gross Revenue: $1,400,000

EBITDA: $250,000

FF&E: $90,000

Inventory: $70,000*

Rent: $0.69 /Month

Established: 2007

*not included in asking price.

Dominant Socal Residential/Comm'l Floor Coating Install + Real Estate

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Business Description

Large Affluent Market With Strategic Advantages Over Our Competitors

Founded in 2007, this business is the market leader in Southern California for retail garage floor coatings and is a significant player in the commercial and industrial floor coatings market. Plus, this business has a wholesale distribution element for certain coatings materials and color flake chips due to its favorable purchasing relationships with key manufacturers. The business has an installed base of nearly 7,000 floors and has become the most successful garage floor coating installer in Southern California over the past 10 years. The business has many advantages over its competitors including direct to manufacturer purchasing relationships not enjoyed by other businesses in the market. In addition, a semi-exclusive relationship with its primary supplier has led to a strong "brand" presence. This results in significant cost advantages for the business. Primary geographic markets are San Diego, Riverside and Orange Counties but can easily be expanded to include southern LA County. Further expansion in the deck coatings, commercial flooring markets and a greater emphasis on wholesale distribution via internet or brick & morter can also be easily achieved potentially leading to significant growth from current sales levels. This business is ideal for a family-centric operation where family members can be responsible for sales and marketing, operations and installation or accounting. The business enjoyed its best year ever in 2017 with gross sales over $1.4M. 2018 Sales project close to $1.5M. Sales have grown consistently each of the past 10 years and have averaged close to $1.4M last 4 years. Adjusted Cash Flow in 2017 was over $250K and averages close to $200K last 4 years. Employees are highly skilled and will transfer with the business. The business typically has a 3-4 week backlog of business during much of the year and enjoys referral relationships with key garage cabinet fabricators, general contractors and home builders that provide 10%-15%+ of annual sales. Employees work a 4-10 hour day schedule from 6:30am to 5:00pm to maximize efficiency on installations.

The Company is located in a building in downtown San Diego that is perfect as a contractor's office with an office, warehouse & yard. The real estate is valued at approximately $650K - $750K and may be purchased separately from the owner.

Attached Documents


Detailed Information

Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
2,000
Lease Expiration:
12/31/2019
Employees:
10
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Current facilities are shared with a painting company. Operations are separate and designed to split very easily. Real estate is available for purchase separately. There are 4 fully equipped branded trucks (all with lift gates & custom shelving) with grinders, shot blasters, vacuums and all necessary floor prep and installation equipment. Trucks and equipment are in good to excellent condition and are maintained regularly. Asset value of trucks & floor prep equipment is approximately $100K ($285K at replacement cost) and is included in the price.
Competition:
The local coatings market is very strong. Even homes that already have floor coatings are prospective customers due to the need to replace garage flooring every 3-8 years when epoxy was originally used. Previous installations generates about 15% of sales thru referrals and repeat business, another 15%-20% comes from home builders (new home options), general contractors (custom homes and remodels) and strategic partners like California Closets and the rest comes from advertising (internet, website and direct mail home improvement).
Growth & Expansion:
Further market expansion is possible in deck coatings, industrial, commercial and equestrian specialty coating markets. Little or no direct marketing is done in these markets and ownership believes that additional growth is possible with little effort by expanding advertising and sales efforts in these markets. Additional growth is possible in the wholesale distribution portion of the business as well where the business can leverage its direct to manufacturer purchasing relationships. Owner projects business could grow 50% - 100% from current levels.
Financing:
Seller Will Carry Fully Secured Financing Only From Qualified Individuals Only
Support & Training:
The owner does all of the sales. There is a superintendent who manages field operations but the business can be run without a superintendent. This is a hands-on business and keen knowledge of the various processes and products and of concrete in general is required. Therefore, the owner can stay after the sale to provide ongoing support for some length of time.
Reason for Selling:
Owner would like to retire
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Business Listed By:
Paul Frankel

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