Opportunities
Remotely Operated Commercial Construction
Already has $1.7M+ on the books for 2022!
Specifications
This remotely operated commercial construction company already has $1.7M+ on the books for 2022! With no physical location, it helps to keep the overhead costs low and the job ability flexible. The business is based in Florida but works regularly across the US, utilizing local 1099 contractors and traveling as needed. There are a couple hundred 1099 contractors on the books that are available to be used, depending on what is needed by the job. Their primary focus is complete teardown and remodeling of existing commercial locations. There has been a handful of new builds over the years, but that is rare.
Currently, there is no advertising or marketing being done. The business runs 100% on repeat clients and positive word of mouth referrals! A big growth opportunity would be to get the name out a bit more locally to expand the customer base. Another place to grow would be to start working with general contractors and property managers to put maintenance contracts into place. The company is already able to handle maintenance issues on the job site, and while there are no recurring contracts in place, they could be easily added!
The seller is looking at retirement options and what may be next for himself and his family. At a purchase price of $1,250,000 and a down payment of $187,500, a buyer would see a 113% return on investment in the first year, making this a perfect opportunity for a first-time buyer or seasoned entrepreneur.
Business Highlights
- 2021 Annualized Revenue: 1,926,501
- 2020 Cash Flow: $407,169
- Year Established: Incorporated in 1993, doing work in the area since 1980
- Location: Orlando, Florida area
- Service Area: Nationwide
- Clients: Commercial businesses – does not currently work with GC’s or property managers
- Services: All commercial – mostly remodel, mercantile for strip centers, warehouses, and distribution centers; there have been some new builds, but that is rare
- Employees: 2 – 1 FT office admin, 1 FT supervisor + 1099’s as needed for different jobs
- Reason for Selling: Retirement planning
- Seller Training Period: 6 months – 1 year
Financial Highlights
- List Price: $1,250,000
·
2020 Cash Flow: $407,169
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Jan-Nov | Tax Return | Tax Return | Tax Return | Notes |
| 2021 | 2020 | 2019 | 2018 | ||
| GROSS SALES | $1,444,876 | $1,806,374 | $2,675,396 | $2,046,683 | |
| Annualized | $1,926,501 | ||||
| Net Income Shown on Financial Statement | $191,689 | $348,721 | $242,991 | $-10,893 | |
| ADDBACKS | |||||
| Compensation to Owner | $84,375 | $100,000 | $100,000 | $100,000 | |
| Tax on Owner's Compensation | $9,281 | $11,000 | $11,000 | $11,000 | |
| Depreciation | $0 | $1,246 | $136,186 | $11,422 | |
| Interest | $1,251 | $2,738 | $264 | $1,310 | |
| Auto Expense | $13,685 | $15,348 | $20,025 | $20,316 | Personal expense |
| Meals & Entertainment | $8,444 | $0 | $5,723 | $1,475 | Personal expense |
| Cell Phones | $900 | $1,200 | $1,200 | $1,200 | $100/month for personal lines |
| Travel Expense | $-1,072 | $0 | $43,195 | $43,026 | Personal expense |
| Health Insurance | $5,187 | $6,916 | $6,916 | $6,916 | $576.32/month for personal |
| Replacement | $-60,000 | $-80,000 | $-80,000 | $-80,000 | To replace/retain owner |
| Charity | $6,218 | $0 | $0 | $0 | Discretionary expense |
| TOTAL ADDBACKS | $68,269 | $58,448 | $244,509 | $116,665 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $259,958 | $407,169 | $487,500 | $105,772 | |
| Annualized | $346,611 | ||||
| Profit Margin | 17.98 % | 22.54 % | 18.22 % | 5.17 % |
Valuation
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: 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: | % |
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857