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Commercial Roofing Services throughout New York & Connecticut

With over 70 employees in place and over $12M in sales in 2020!

CASH FLOW
$1,911,072

Specifications

  • Price
    $8,500,000

  • Revenue
    $12,101,833

  • Cash Flow
    $1,911,072

  • 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

This roofing & sheet metal company has over 70 employees in place and has had year-over-year growth in sales since 2018! 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.

 

Priced at $8,500,000, 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: $8,500,000

  • 2-Year Average Cash Flow: $1,555,969

*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 40% collateralized*

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Sept 2020
P&L StatementP&L StatementNotes
202020192018
GROSS SALES$9,076,375$10,962,924$8,896,652
Annualized$12,101,833
Net Income Shown on Financial Statement$332,725$1,194,886$-896,529
ADDBACKS
Compensation to Owner$322,500$430,000$430,000Will need to prove w/ W2; includes 401k & repayment from funds contributed to start the company
Other unrelated Salaries$21,169$28,225$28,225Wife's salary - not active
11% Tax on total W2 Salaries$37,804$50,405$50,405
Direct Depreciation$25,956$0$0Shown in COGS in 2020
Interest$49,333$99,776$101,803
Personal Expenses$45,525$60,700$60,700
Contributions/Donations$10,124$320$535
Depreciation$55,513$45,500$49,121
Amortization$0$1,260$945
TOTAL ADDBACKS$567,924$716,186$721,734
Seller's Cash Flow = Total Addbacks + Net Income$900,649$1,911,072$-174,795
Annualized
Profit Margin9.92 %17.43 %-1.96 %
2019 Profit Margin: 17%

Valuation

Funding Example

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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.