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Opportunities

Commercial Window Cleaning & Custom Holiday Lighting Services

Over 1,000 clients and nearly $1M in revenue!

CASH FLOW
$370,592

Specifications

  • Price
    $770,000

  • Revenue
    $943,240

  • Cash Flow
    $370,592

  • Location
    Central Iowa

  • Service Area
    90% local, 10% regional

  • Profit Margin
    27%

  • Intangible Assets
    Strong recurring client base, quality of services, variety of service offerings, pricing structure, well-known for reliability, word-of-mouth referrals

  • Reason for Sale
    Relocating; approaching retirement

With over 1,000 clients and nearly $1M in revenue, this specialty exterior window cleaning and building maintenance company is in a prime position for growth! Services for this Central Iowa business include window cleaning, high-rise window cleaning, custom holiday lighting design, hanging & takedown, graffiti removal, pressure washing, brick sealant, commercial garage floor cleaning and line striping, caulking, light bulb changing, hard water removal from glass & brick, and brass & stainless polishing/cleaning. Holiday lighting services were added 10 years ago and continues to bring in well over $100k per year in revenue; 50 new clients were added in 2020 alone. They have a strong recurring client base, with 75% of their projects comprised of maintenance or repetitive work. Their highly skilled and long-tenured workforce includes full-time and part-time W2 employees, all flexible and capable of performing any job request. Part-time seasonal employees are hired during the busy seasons (spring & fall), as those months tend to add 20% more to the normal workload, and part-time employees are also hired in the winter to assist with holiday lighting services.

 

The company uses a small warehouse space (a building owned by the business owner) for equipment; the owner leases the building to the company. However, this space is much larger than what is needed for the company to run successfully; the workspace needed for a new owner is very flexible. The team would need enough parking for themselves and work vehicles (with costs around $50 for each spot per month), and a relatively small space would be needed to store equipment.

 

Priced at $770,000, a 10% down payment of $77,000 returns $134,622 in the first year after debt payments – a 175% return on investment! With a strong recurring client base already established and the capability of working at height, there is ample opportunity for growth. Expanding the service area to include a more regional customer base, taking on more projects in the residential market, add additional building maintenance services, and increasing the marketing efforts for certain services such as tuckpointing & caulking sealant, would be great opportunities to boost revenue.

Business Highlights

Year Established: 1984; under current ownership since 2004

Location: Central Iowa

Service Area: 90% local, 10% regional

Services Window cleaning, high-rise window cleaning, holiday lighting hanging & takedown,  graffiti removal, pressure washing, brick sealant, commercial garage floor cleaning and line striping, caulking, light bulb changing, hard water removal from glass & brick, brass & stainless polishing/cleaning

Clients: Corporations, Property Owners, Property Managers; 90% commercial, 10% residential

Number of Clients: 1,000+

Lease: Small warehouse space is rented for $4,000/month; however, this business could be run from a home office

Reason for Selling: Relocating; approaching retirement

Personnel: FT & PT W2 employees + seasonal employees as needed

Seller Training Period: 3-6 months

Growth Opportunities: Expand the service area, expand more into residential market, add additional building maintenance services, increase tuckpointing & caulking services

Current Owners’ Responsibilities: Owner 1: Manages crews & customers, bookkeeping/admin; Owner 2: Not active in the business

Financial Highlights

  • List Price: $770,000


Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Jun
P&L StatementTax ReturnTax ReturnNotes
2021202020192018
GROSS SALES$471,620$857,877$939,969$725,366
Net Income Shown on Financial Statement$81,250$117,298$102,299$-61,784
ADDBACKS
Compensation to Owner$44,154$46,981$45,000$45,000Owner
Other unrelated Salaries$44,154$46,981$45,000$45,000Owner's Spouse
11% Tax on total W2 Salaries$9,714$10,336$9,900$9,900
Interest$3,768$9,199$9,293$6,081
Depreciation$0$0$51,809$62,724
Amortization$0$0$34,035$39,702
Medical$620$2,975$1,310$1,979100% Owner
Owner's Memberships$2,500$5,000$5,000$5,000EO
Cell Phone$1,800$3,600$3,600$3,600$300/month
Home Office Expense$1,500$3,000$3,000$3,000$3,000/year
Training$2,957$2,785$0$0EO Retreat for Owner
Owner's Auto Insurance$1,379$2,760$2,760$2,760$229.78/month
Owner's Auto Fuel$1,500$3,000$3,000$3,000$250/month
Bookkeeping$-10,000$-20,000$-20,000$-20,000Replacement/Hire
TOTAL ADDBACKS$104,046$116,617$193,707$207,746
Seller's Cash Flow = Total Addbacks + Net Income$185,296$233,915$296,006$145,962
Profit Margin39.29 %27.27 %31.49 %20.12 %
2020 Profit Margin: 27%

Valuation

Funding Example

Purchase Price:

$770,000

$
%
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:
2020 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 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.