Opportunities
Full-Service Stone & Tile Restoration in Phoenix – 1,600+ Clients
Low overhead – operations can be run remotely!
Specifications
This stone & tile restoration company has over 1,600 active clients in the Phoenix Metro and low overhead costs! Established in 2013, this full-service stone cleaning, honing, polishing, and repair company has $115K in assets including 2 vans equipped with truck mounted hot water extraction equipment, high-speed weighted buffers, tools, and supplies. Two efficient technicians manage the entire on-site workload which involves cleaning, sealing, polishing, honing, stripping, repair, and treatment for all-natural stones as well as tile and carpet cleaning. The staff also includes a manager, an administrator/salesperson, and an overseer of the financials. All work is done for high-end homeowners, commercial businesses, hotels, banks, condominiums, or anyone with natural stone surfaces within the Phoenix Metro area.
The business operates from one warehouse that is not open to the public. They do utilize a virtual office when it is needed, but operations can be run remotely with ease. The team may be lean but is incredibly effective in running the business day-to-day. The owner currently handles scheduling and operations.
This business has superior social media reviews, an excellent reputation, high quality services, and a well-trained team in place. Revenue growth would certainly be obtained by advertising, infusing capital into an additional van to increase capacity, or maximizing current assets with extended hours to generate additional income. Priced at $620,000, a 10% down payment of $62,000 returns $106,494 in the first year after debt payments – a 172% return on investment!
Business Highlights
- Year Established in Arizona: 2013
- Location and Service Area: Phoenix Metro Area
- Clients: Businesses, hotels, high end homes and anyone with natural stone surfaces
- Active Clients: 1,605 current active clients
- Services: Full-service stone restoration including cleaning, honing, polishing, and repair, as well as full-service carpet and tile care
- Lease: 1,000: Warehouse, inside parking, virtual administrative office
- Reason for Selling: Retirement
- Employees: 5: 2 Technicians, 1 manager, 1 administrative/sales, 1 financial oversight
- Seller Training Period: 3 months
- Growth Opportunities: Advertise, expand the current business model, infuse capital to add another can to increase capacity, maximize current assets with extended hours
- Current Owner’s Responsibilities: Scheduling and operations
Financial Highlights
- List Price: $620,000
- Cash Flow:
- TTM: $214,197
- 2020: $201,770
- 2019: $143,366
Cash Flow Analysis
| Description of Financial Statement | P&L Statement May 2020-March 2021 | P&L Statement Jan-March 2021 | P&L Statement Cash | P&L Statement Cash | Tax Return Cash | Notes |
| 2021 | 2021 | 2020 | 2019 | 2019 | ||
| GROSS SALES | $284,221 | $74,330 | $319,794 | $404,026 | $433,163 | |
| Annualized | $310,059 | $297,320 | ||||
| Net Income Shown on Financial Statement | $64,523 | $18,396 | $57,890 | $36,771 | $-24,105 | |
| ADDBACKS | ||||||
| Compensation to Owner | $104,500 | $28,500 | $114,000 | $114,000 | $114,375 | |
| 11% Tax on total W2 Salaries | $11,495 | $3,135 | $12,540 | $12,540 | $12,581 | |
| Depreciation | $0 | $0 | $0 | $0 | $11,856 | |
| Interest | $-40 | $0 | $528 | $2,225 | $6,676 | |
| Meals & Entertainment | $372 | $91 | $426 | $390 | $1,798 | Personal expense |
| Cell Phone | $990 | $270 | $1,080 | $1,080 | $1,080 | $90/month for personal cell phone |
| Insurance | $9,882 | $2,695 | $10,780 | $10,780 | $10,780 | $898.36/month for personal insurance |
| One Degree Insurance | $-426 | $0 | $282 | $564 | $0 | Non-onward going expense |
| Travel | $4,951 | $1,079 | $4,144 | $853 | $8,325 | Personal expense |
| Donations | $100 | $0 | $100 | $0 | $0 | |
| TOTAL ADDBACKS | $131,824 | $35,770 | $143,880 | $142,432 | $167,471 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $196,347 | $54,166 | $201,770 | $179,203 | $143,366 | |
| Annualized | ||||||
| Profit Margin | 69.08 % | 72.87 % | 63.09 % | 44.35 % | 33.10 % |
- Profit Margin 2019: 44%
Typical Clients
- High-end homeowners
- Businesses
- Hotels
- Anyone with natural stone surfaces
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
Full-service stone maintenance including:
- Cleaning
- Sealing
- Polishing
- Honing
- Stripping
- Repair
- Treatment
Full-service carpet cleaning
Tile & grout cleaning
Employees
Total Employees: 5
- 2 Technicians
- 1 Manager
- 1 Administrative
- 1 Financial oversight
Growth Opportunities
- Advertise
- Expand the current business model
- Infuse capital to add another van to increase capacity
- Maximize current assets with extended hours
Valuation Details
Funding Example
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: 3 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: 3 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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