Virtual Home Remodeler 40%+ Yr. Growth. $2M+ Order Backlog.

Woodland Hills, CA (Los Angeles County)

Virtual Home Remodeler 40%+ Yr. Growth. $2M+ Order Backlog.
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Asking Price: Get Financing: $1,500,000

Cash Flow: $521,000

Gross Revenue: $5,400,000

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Established: N/A

Virtual Home Remodeler 40%+ Yr. Growth. $2M+ Order Backlog.

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Business Description

Outsourced Construction. $150K Down SBA Loan Possible

BBB A+ Rating. 4.5 Star Yelp. Already has $3M revenue in just 5 months ending May 2018 = $7.2M annualized. Healthy order backlog. Structured for rapid growth and ease of management. This stellar 4 year business is essentially a sales company that has a virtual construction department via outsourced, licensed contractors. The outsourcing of construction activity is made possible by an abundance of local hungry, experienced licensed and bonded contractors. This outsourcing allows the business to focus on impressive sales growth and insulates it from the direct cost of labor cost overruns, worker injury and workflow fluctuations.

With just 16 employees including 10 salespersons and working owner / manager, the low headcount is exceptional in relation to revenue. Organization complexity and flow of information is far easier than most businesses of comparable revenue. Making pricing simple, the salespersons quote prices from an itemized detailed price list. The main product offerings are kitchen and bathroom remodels, room additions, roofing, windows and air conditioning. Because of the virtual outsourcing model with multiple contractors the business can offer a wide variety of services less available with vertically integrated competitors whose priority is to keep their specialized core workforce busy.

With ongoing flow of down payments and progress payments, capital is not a bottleneck to rapid growth. With the commission-only salesforce and generous profit markups on outsourced construction costs help keep variable costs more than 80% of sales. The ultra-low fixed overhead percent results in predictable net profit percentages at nearly any level of revenue.

The buyer for this business should have marketing and sales savvy in addition to business management experience. Because of the outsourcing of construction activities, the buyer need not have construction experience. Buyer need not have contractor’s license.

The business is pre-qualified for a SBA acquisition Financing with SBA loan with 10% Down Payment ($150,000) the annual payment on a loan of $1,350,000 with 10 year amortization and 7.25% interest would be $190,000 / year. Assuming the 2017 Discretionary Income of $521,000 annually less Debt Service of $190,000 would leave the buyer with $330,000 Cash Flow after Debt Service, a 220% first year cash on cash return on down payment. The buyer must also qualify for this loan.

Optionally, the seller is willing to provide a seller promissory note for 10% of the sales price or $150,000 at 6.75% APR for 60 months.

After returned NDA, we then can provide full 13+ page Business Summary with 3 year P&Ls that will answer 90% of your questions.

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(from currently available funds)
 
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Hoke Nagahori

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Hoke Nagahori

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