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Commercial Roof Installation throughout New York & Connecticut

With over $13.5M in sales and 70 employees in place!

CASH FLOW
$1,517,716

Specifications

  • Price
    $6,475,000

  • Revenue
    $13,668,838

  • Cash Flow
    $1,517,716

  • Location
    Fairfield County, Connecticut

  • Service Area
    Western Connecticut, lower Hudson Valley, and the 5 boroughs of NYC & Long Island

  • Reason for Sale
    Approaching retirement

  • Employees
    71: 11 office staff (9 FT, 2 PT) + 60 FT field employees

  • Equipment
    $793,717

  • Intangible Assets
    Well-established relationships with private customers, word-of-mouth referrals, extremely diversified client base, considerable repeat business with general contractors, construction managers, and owners

With over $13.5M in sales in 2020, this roofing & sheet metal company has over 70 employees in place! Specializing in commercial roofing in the western half of Connecticut, the lower Hudson Valley, and the five boroughs of NYC and Long Island, they install new roofing as well as replace existing roofs. The breakdown varies from year to year; in 2020, 75% of sales came from new construction, while 25% was reroofing services. With expertise in membrane roofing, metal roofing, custom sheet metal work, shingle, slate, and tile steep slope roofing, below grade waterproofing, plaza pavers, and ornamental sheet metal work, this business has considerable repeat business with general contractors, construction managers, and owners in the area. Their diversified client base includes national retail, hospitals, pharmaceuticals, military, universities, private schools, government (schools, town halls, police, fire, etc.), and NYC government agencies. The team of 70 includes the owner, who handles sales, banking, insurance, and bonding, as well as a Director of Operations, Director of Business Development, Chief Estimator, HR Manager, Accounting Manager, Field Manager, Project Manager, and 60 full-time field employees.

 

The roofing & sheet metal division is 100% union; they started a solar division in 2020, which is 100% non-union. The business landed a national account servicing approximately 200 stores, strip malls, and shopping centers from Buffalo, New York to Baltimore, Maryland. The solar division was started to be more competitive for this account. Although they have not completed any solar installations, this division has taken on service work since June 2020 and did $500k in sales with a profit of nearly $225k. The national account has approximately 20M sq. ft. of roof; the non-union solar division will provide reroofing services for 10-12% of their stores. They expect to do 2-3 times the 2020 sales amount in 2021 with similar margins. The solar division recently landed a $2.7M private job that the roofing division will profit $1.2M from – this is in addition to all the national chain retail work that will be profitable.

 

Priced at $6,475,000, this company is poised for large growth. Expanding the solar division will boost sales and increase profit margins tremendously. They grew by 20%+ in 2020, with the expectation to be at that same rate or higher in 2021. A new owner could take their well-trained workforce and established relationships with private customers to the next level. 

Business Highlights

Year Established: 2014

Location: Fairfield County, Connecticut

Service Area: Western Connecticut, lower Hudson Valley, and the 5 boroughs of NYC & Long Island

Services: Commercial roofing services (new construction & re-roofing): membrane roofing, metal roofing, custom sheet metal work, shingle, slate & tile steep slope roofing, below grade waterproofing, plaza pavers and ornamental sheet metal work

Clients: National retail, hospitals, pharmaceuticals, military, universities, private schools, Government (schools, town halls, police, fire), NYC Government agencies

Lease: 16,000 sq. ft.: 4,000 sq. ft. office space, 12,000 sq. ft. shop & warehouse

Reason for Selling: Approaching retirement

Personnel: 71: 11 office staff (9 FT, 2 PT) + 60 FT field employees

Seller Training Period: 1-2 years

Growth Opportunities: Expand the solar side of the business

Current Owner’s Responsibilities: Coordination of field operations w/ Director of Operations, sales, banking, insurance

Employees

  • Owner (President)
  • Corporate Secretary / Human Resources
  • Controller
  • Director of Business Development
  • Director of Operations
  • Chief Estimator
  • Accounting
  • Compliance Administrator
  • Safety Manager
  • Project Manager
  • CT Foreman
  • NY Foreman
  • Field Employees

Financial Highlights

  • List Price: $6,475,000

  • 2-Year Average Cash Flow: $1,517,716

*amounts may vary

Assets of Business

  • Assets: $3,610,291
  • Equipment: $543,217: Numerous jobsite forklifts, all trade equipment
  • Vehicles: $250,500: 20 vehicles including (2) 2021 GMC Sierras 2500 HD’s
  • A/R: $1,958,956
  • Retainage Receivables: $803,022
  • Inventory: $54,596
  • Intangible: Well-established relationships with private customers, word-of-mouth referrals, extremely diversified client base, considerable repeat business with general contractors, construction managers, and owner

*Over 55% collateralized*

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementP&L StatementNotes
202020192018
GROSS SALES$13,668,838$10,962,924$8,896,652
Net Income Shown on Financial Statement$1,268,049$1,194,886$-896,529
ADDBACKS
Compensation to Owner$430,000$430,000$430,000Will need to prove w/ W2; includes 401k & repayment from funds contributed to start the company
Other unrelated Salaries$28,225$28,225$28,225Wife's salary - not active
11% Tax on total W2 Salaries$50,405$50,405$50,405
Direct Depreciation$0$0$0Shown in COGS in 2020
Interest$101,281$99,776$101,803
Personal Expenses$60,700$60,700$60,700
Contributions/Donations$0$320$535
Depreciation$0$45,500$49,121
Amortization$0$1,260$945
PPP Loan$-814,300$0$0One-time Income
TOTAL ADDBACKS$-143,689$716,186$721,734
Seller's Cash Flow = Total Addbacks + Net Income$1,124,360$1,911,072$-174,795
Profit Margin8.23 %17.43 %-1.96 %
2019 Profit Margin: 17%

Valuation

Funding Example

Purchase Price:

$6,475,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2-year average cash flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2-year average cash flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.