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Remodeling & Finish Carpentry since 1992

Kitchen & bath remodels with $1M in sales!



  • Price

  • Revenue

  • Profit Margin

  • Location
    Lincoln, NE

  • Service Area
    Lincoln and surrounding communities within 30-mile radius

  • Reason for Sale
    Retirement planning

  • Cash Flow

  • Employees
    9: 1 owner, 1 office manager, 1 project manager, 6 laborers

  • Intangible Assets
    Well-established name, solid reputation, steady reoccurring business through four home builders

With over $1MM in sales in 2019, this well-established business specializes in kitchen and bath remodels, additions, finish carpentry, and custom cabinetry design and installation. Serving Lincoln and surrounding communities for nearly 30 years, this highly skilled design staff offers an unmatched experience from beginning to end. Clients include remodeling homeowners looking for a tune-up or additions, and residential/commercial contractors looking for interior finishes in a newly built home. An office manager is already in place, handling all incoming phone calls and e-mails from new and existing clients, as well as quoting, invoicing, scheduling, and ordering. A project manager runs the jobs on site, and 6 experienced laborers make sure the work is top notch from start to finish.


Home remodeling and additions account for 50% of their revenue, 40% is finish carpentry, and 10% custom cabinetry. The company already has $800,000 in signed contracts for 2020, with much more expected in the pipeline through their valued homebuilders.  Assets include $78,000 worth of portable equipment, shop equipment, and hand tools used by three crews of laborers.


Growth opportunities are endless. Adding another project manager would allow the company to take on more jobs, as home remodeling and additions is an industry that is in constant high demand.

Business Highlights

  • Year Established: 1992
  • Location: Lincoln, NE
  • Service Area: Lincoln and surrounding communities within 30-mile radius
  • Clients: Remodeling homeowners & residential/commercial contractors
  • Services: Kitchen/bath remodels, additions, finish carpentry, custom cabinetry
  • Lease: 3,500 square feet
  • Reason for Selling: Retirement Planning
  • Personnel: 9: 1 owner, 1 office manager, 1 project manager, 6 laborers
  • Seller Training Period: 6 months-1 year
  • Growth Opportunities: Add another project manager to take on more remodels
  • Current Owner’s Responsibilities: Works 30 hours/week; Meeting with staff, initial meetings with clients and project manager, visiting job sites at various stages of the project for quality assurance

Financial Highlights

  •  List Price: $590,000
  • Gross Sales:
    • 2019: $1,012,934
    • 2018: $718,094
    • 2017: $615,674
    • 2016: $604,870
  • Cash Flow:
    • 2019: $181,474
    • 2018: $172,390
  • Assets Included in Purchase: $78,000
    • Equipment: $24,000 in portable equipment, $30,000 in shop equipment, $24,000 in hand tools for three crews
    • Equipment includes 12 enclosed H&H Trailers, 2 job site DeWalt table saws, 3 DeWalt 10” compound miter saws, 2 Bosch 12” axial arm compound miter saws, 2 scissor lift tables, scaffolding, various miscellaneous tools
    • A/R, Secured Work, Pipeline: $800,000 in signed contracts for 2020
    • Intangible Assets: Well-established name, solid reputation, steady reoccurring business through four homebuilders

*amounts may vary, assets may be depreciated, replacement cost, or fair market value 

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnNotes
GROSS SALES$1,012,934$718,094$615,674
Net Income Shown on Financial Statement$68,466$100,880$2,975
Compensation to Owner$78,700$14,000$62,170
11% Tax on total W2 Salaries$8,657$1,540$6,839
Meals & Entertainment$1,161$689$698
Auto-Personal Use$22,562$23,075$11,612100% Personal
Travel$0$426$1,255100% Personal
Director's Fee$0$28,000$0Paid to Owner
TOTAL ADDBACKS$113,008$71,510$87,262
Seller's Cash Flow = Total Addbacks + Net Income$181,474$172,390$90,237
Profit Margin17.92 %24.01 %14.66 %
2019 Profit Margin: 18%


  • Remodeling Homeowners
  • Residential/Commercial Contractors
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement


  • Kitchen/bath remodels
  • Home additions
  • Finish carpentry
  • Custom cabinetry


  • 1 owner
  • 1 office manager
  • 1 project manager
  • 6 laborers

Growth Opportunities

  • Add another project manager to allow company to take on more remodels

Valuation Details

The Firm used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A prescribed multiple is determined by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiplier.

For this business, the 2019 cash flow was used with a prescribed multiple of 3.25.  With this information, the computation is as follows:

$181,474         x          3.25     =          $589,790

The fair market value found above positions the business list price at $590,000.

Funding Example

Purchase Price:                             $590,000

10%Buyer Down Payment:        $59,000

10%Seller Financing:                  $59,000

80%Bank Loan:                         $472,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,100.

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $6,203.

After business expenses and loan payments, a buyer with a 10% down payment of $59,000 would retain a profit of $93,842, which results in a 159% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $590,000 with the terms listed above, the coverage ratio is 2.07.

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 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:



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:
2019 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2019 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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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.