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Light Remodeling & Renovation with Niche Client Base

12 experienced employees on staff – owner works part-time and does no field work!

CASH FLOW
$374,772

Specifications

  • Price
    $1,225,000

  • Revenue
    $2,442,221

  • Equipment
    $261,120

  • Down Payment
    12.5%

  • Location
    Houston, TX

  • Account Receivable
    $175,000

  • Service Area
    Houston (70%), San Antonio (20%) and occasionally Dallas (10%)

  • Reason for Sale
    New non-competing endeavors

  • Valuation
    $1,236,748

  • Profit Margin
    15%

  • 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

  • Intangible Assets
    Solid transferable relationships and communication with clients, adaptability working with larger businesses and corporate entities

 

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.

Business Highlights

  • 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

Financial Highlights

  • 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

Cash Flow

Description of Financial StatementTax Return
Total
Tax Return
Total
Tax Return
Total
Tax Return
Total
Notes
2019201820172016
GROSS SALES$2,442,221$2,115,793$1,804,951$2,405,220
Net Income Shown on Financial Statement$29,868$-235,826$-18,837$14,653
ADDBACKS
Compensation to Owner$97,000$97,000$97,000$97,000
Other unrelated Salaries$12,000$18,000$18,000$18,000Family members - don't actually work in the business
11% Tax on total W2 Salaries$11,990$12,650$12,650$12,650
Depreciation$7,474$97,457$7,657$11,940
Interest$42,778$11,251$8,848$6,969
Auto-Personal Use$40,129$8,508$8,508$8,508
Meals & Entertainment$1,503$2,032$788$1,48570% personal
Cell Phones$4,200$4,200$4,200$4,200Cell Phones- $350/month for 4 personal lines
Travel$21,791$23,920$4,055$14,73290% personal
Insurance$8,343$11,644$11,644$11,644
Amortization$31,656$31,658$31,657$31,656
Contributions/Donations$3,193$1,606$1,584$0
Employee Benefit Plan$5,881$18,149$11,454$0Paid for owner & family
Management fees$116,966$251,972$194,242$140,302
MBA Program $0$4,728$0$0
FR Assoc Deferred Payments $0$24,285$25,790$10,643
GM Wage$-60,000$-60,000$-60,000$-60,000
TOTAL ADDBACKS$344,904$559,060$378,077$309,729
Seller's Cash Flow = Total Addbacks + Net Income$374,772$323,234$359,240$324,382
Profit Margin15.35 %15.28 %19.89 %13.49 %
.Profit Margin: 15%

Typical Clients

  • Real estate investors
  • REITs
  • Private entities
  • Residential projects
  • Governmental commercial contracts

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Complete home remodels
  • Home additions
  • Roofing
  • Concrete projects including foundations, driveways, flat work, etc.
  • Interior design
  • Maintenance and repairs

Employees

  • 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

Growth Opportunities

  • Expand into business to consumer residential projects
  • Take on more governmental commercial contracts

Funding Example

Purchase Price:                          $1,225,000

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.

Purchase Price:

$1,225,000

$
%
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:
2019 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2019 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
Omaha, NE 68114

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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.