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Commercial Tile Contractor in Texas – All Labor Outsourced

Buyer would see a 386% ROI in the first year after debt payments!



  • Price

  • Revenue

  • Location
    Houston, Texas

  • Cash Flow

  • Service Area

  • Lease
    Home office, low overhead

  • Profit Margin

  • Intangible Assets
    Great reputation for customer service, low overhead allowing for competitive pricing, long-standing relationships with GC’s

  • Reason for Sale

A 10% down payment of $41,500 returns $160,187 in the first year after debt payments – a 386% return on investment! There is little to no overhead for this commercial tile contractor, as all labor is outsourced. Boasting a 30% profit margin in 2020, their client base includes General Contractors and Construction Managers, and currently the work is primarily for service stations throughout Texas. There is one part-time W2 employee (the owner’s spouse), who works approximately 10 hours/week from a home office doing estimates, purchasing, coordinating deliveries, scheduling installations with the labor force, and bookkeeping; all labor is subcontracted out. Sales could easily climb into the $2M-$3M range by actively submitting more bids, expanding the product line to include other types of flooring, pursuing work in schools, grocery stores, retail stores, and entertainment/restaurants, and by tapping into the residential market. Service station tile contracts generally run anywhere from $20k-$120k. The company currently has 10 projects on the books worth approximately $238k; the average project takes 7 days to complete.


This business is not consumer-based, so there was no COVID impact on sales – clients did not put a moratorium on construction projects. The company does advertise in the Blue Book, which gives them requests for bids via email – they currently have nearly 20 open bids, along with the 8 projects in progress.


Priced at $415,000 and with long-standing relationships already in place with General Contractors in the area, a new owner could take this business to the next level.  The current owner bought the business in 2015, when sales were $250k and grew revenue to $3.5M by 2018, with at least 5 bids per day and a much larger client base, proving that this business is capable of tremendous growth. They intentionally downsized the business in early 2019 (semi-retirement) and chose to keep sales in the $600k-$700k range. The company has seen sales in $3M range in the past and could easily reach those heights again under new ownership.

Business Highlights

Year Established: 1950

Location: Houston, Texas

Service Area: Statewide

Services: Commercial tile supply and installation

Clients: General Contractors & Construction Managers

Lease: Home office; low overhead

Reason for Selling: Retirement

Personnel: 1 PT W2 employee (10 hours/week; estimates, purchasing, scheduling installations with labor force, bookkeeping) + 1 primary subcontractor

Seller Training Period: 6 months

Growth Opportunities: Bid more work, expand the product line,  implement marketing strategy, create n internet presence, tap into residential market, pursue retail, schools, grocery stores, etc.

Current Owner’s Responsibilities: Owner is absentee; spouse is PT employee

Financial Highlights

  • List Price: $415,000
    • 2020 Cash Flow: $213,702
    • 2020 Profit Margin: 30%
    • A/R: $91,202
    • Work in Progress: $238k
    • Intangible Assets: Great reputation for customer service, low overhead allowing for competitive pricing, long-standing relationships with GC’s

    *amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Tax Return
Tax Return
Tax Return
GROSS SALES$715,741$607,293$3,485,410$2,280,876
Net Income Shown on Financial Statement$187,690$-10,195$-13,267$155,208
Compensation to Owner$0$0$0$31,000
11% Tax on total W2 Salaries$0$0$0$3,410
Meals & Entertainment$877$734$187$1,399
Insurance Premiums for Owners: Health, Life, Auto$2,434$2,434$2,434$0
Management Fee$0$68,500$629,076$422,000Paid to owner
Loan Fee$0$0$23,946$0
Employee Benefit Program$17,586$0$0$0Benefits to Owner
TOTAL ADDBACKS$26,012$82,335$668,210$468,476
Seller's Cash Flow = Total Addbacks + Net Income$213,702$72,140$654,943$623,684
Profit Margin29.86 %11.88 %18.78 %27.34 %
  • Owner bought the business in 2015, when sales were $250k (previous owner had intentionally downsized) and grew the business to $3.5M by 2018.


  • In 2019, owner made the conscious decision to downsize the business and transition into semi-retirement. They slowed their bidding activity down and are currently working with 3-4 of their clients.
  • Sales could easily be restored by submitting more bids.


Growth Opportunities

  • Expand the product line to include more types of flooring


  • Implement marketing strategy


  • Create an internet presence


  • Tap into residential market


  • Pursue work in different sectors – retail, schools, grocery stores, restaurants, etc.


Funding Example

Purchase Price:



Bank Loan Needed: $


Funding Details


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: $


Fixed Charge Coverage Ratio

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

Cash Flow:
2020 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

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

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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