Light Remodeling & Renovation with Niche Client Base
12 experienced employees on staff – owner works part-time and does no field work!
Twelve experienced employees are already in place at this company; the owner works part-time and does no field work! With an infrastructure set up to support larger clients and maintain relationships, this highly skilled staff of 12 continues to build solid relationships with their clients. Employees include PT Admin Assistant, PT Office Manager, PT Network IT, Operations Manager, Residential Estimator, (2) Superintendents, Commercial Specialist, (2) Client Support, Document Control, Inside Sales and field crew. Clients include corporate real estate investors, private entities, some residential work, along with commercial and military when needed. Assets include $261k worth of equipment, $124k in vehicles, $180k in A/R, and $210k in work-in-progress. The 4,200 sq. ft. warehouse, ½ acre equipment yard, and 2,500 sq. ft. office building currently used is available for sale or lease, separate from the sale of the business. A 12.5% down payment of $153,125 returns $218,115 in the first year after debt payments!
The team works all over Texas, with 70% of their work being done in Houston, 20% in San Antonio, and 10% in Dallas. Services vary from complete home remodels and home additions, to maintenance, repair and interior design. The owner has designed his position to be strictly part-time operations and financial work.
The current owner is willing to stay on for 6 months to 1 year, if desired. Growth opportunities include expanding into business to consumer residential projects as well as taking on more governmental commercial contracts.
- Year Established: 2004
- Location: Houston, TX
- Service Area: Houston (70%), San Antonio (20%) and occasionally Dallas (10%)
- Services: Light Remodeling and Renovating
- Clients: Large real estate investors, private entities, some residential, commercial and military
- Building: 4,200 sq. ft. warehouse; 1/2-acre equipment yard; 2,500 sq. ft office building (3 offices, 15 workstations, conference rooms, etc.)
- Reason for Selling: New non-competing endeavors
- Employees: 12: PT Admin Assistant, PT Office Manager, PT Network IT, Operations Manager, Estimator, (2) Superintendents, Commercial Specialist, (2) Client Support, Document Control, Inside Sales and field crew
- Hours: M-F 8-5
- Seller Training Period: 6-12 months
- Growth Opportunities: Take on more governmental commercial projects
- Current Owner’s Responsibilities: Part time operations and financials; no field work
- List Price: $1,225,000
- Gross Sales:
- 2019: $2,442,221
- 2018: $2,115,793
- 2017: $1,804,951
- Cash Flow:
- 2019: $374,772
- 2018: $383,233
- Assets Included in Purchase*
- Equipment: $261,000; 9 trailers, 2 portable pressure washing rigs, manlift, fans, dehumidifiers, water extractors, excavator, 5 commercial mowers and landscaping equipment, computers, office equipment, scanning camera etc.
- Vehicles: $123,000 6 Crew Vans, (2) Ford Explorers
- A/R: $180,000
- WIP: $210,000
- Prospective Projects: $1,500,000
*amounts may vary
|Description of Financial Statement||Tax Return|
|Net Income Shown on Financial Statement||$29,868||$-235,826||$-18,837||$14,653|
|Compensation to Owner||$97,000||$97,000||$97,000||$97,000|
|Other unrelated Salaries||$12,000||$18,000||$18,000||$18,000||Family members - don't actually work in the business|
|11% Tax on total W2 Salaries||$11,990||$12,650||$12,650||$12,650|
|Meals & Entertainment||$1,503||$2,032||$788||$1,485||70% personal|
|Cell Phones||$4,200||$4,200||$4,200||$4,200||Cell Phones- $350/month for 4 personal lines|
|Employee Benefit Plan||$5,881||$18,149||$11,454||$0||Paid for owner & family|
|FR Assoc Deferred Payments||$0||$24,285||$25,790||$10,643|
|Seller's Cash Flow = Total Addbacks + Net Income||$374,772||$323,234||$359,240||$324,382|
|Profit Margin||15.35 %||15.28 %||19.89 %||13.49 %|
- Real estate investors
- Private entities
- Residential projects
- Governmental commercial contracts
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Complete home remodels
- Home additions
- Concrete projects including foundations, driveways, flat work, etc.
- Interior design
- Maintenance and repairs
- PT Admin Assistant
- PT Office Manager
- PT Network IT
- Operations Manager
- 1 Estimator
- (2) Superintendents
- Commercial Specialist
- (2) Client Support
- Document Control
- Inside Sales
- Field crew
- Expand into business to consumer residential projects
- Take on more governmental commercial contracts
12.5%Buyer Down Payment: $153,125
12.5%Seller Financing: $153,125
75%Bank Loan: $918,750
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $2,855.
Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $10,200.
After business expenses and loan payments, a buyer with a 12.5% down payment of $153,125 would retain a profit of $218,115, which results in a 142% return on investment in the first year.
A lender is required to have a minimum 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $1,225,000 with the terms listed above, the coverage ratio is 2.39.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
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: $
|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.
2019 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2019 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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