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Roofing, Siding, & Gutter Repair & Replacement Services

Project Manager who runs day-to-day operations already in place!

CASH FLOW
$188,650

Specifications

  • Price
    $580,000

  • Revenue
    $1,353,435

  • Cash Flow
    $188,650

  • Location
    Des Moines, Iowa

  • Service Area
    Central Iowa; primarily within 20-mile radius of Des Moines

  • Employees
    2 W2 employees: 1 Owner + 1 Project Manager/Salesperson, plus a well-established roster of subcontracted crews and 1 part-time subcontracted accountant

  • Equipment
    $240,000

  • Intangible Assets
    Word-of-mouth referrals, well-known name, and solid reputation in Central Iowa

  • Reason for Sale
    Pursuing other (non-compete) ventures

A project manager who runs the day-to-day operations is already in place for this company! With a solid reputation in the market, this Central Iowa business has substantial growth opportunities. Well-established for over 15 years in Des Moines, they primarily serve the residential market, doing roof repairs and maintenance, as well as gutter and siding repair. Offering high-quality Owens Corning, Malarkey, and GAF roofing products to their customers, their highly experienced subcontracted crews pride themselves on ensuring each roof is in the best condition possible. For each customer, they provide an in-depth roof inspection to assess damage and determine the scope of repairs needed, bid the project within 24 hours, and fulfill the necessary roofing services within 2 weeks. While there is some seasonality to the business due to weather conditions in the winter months, the other nine months more than make up for the temporary lack in revenue. Their average gross profit ranges from 35-45%; the company’s sales hit $1.4M in 9 months’ time last year, with a gross profit of 39%.

 

Employees consist of the owner, who handles general oversight, and 1 Project Manager/Salesperson who runs the day-to-day operations. They have a well-established roster of go-to subcontractors who comprise the roofing crews and are assigned based on project size and scope. Assets include two 2020 H&H 7x14 Dump Trailers, a 2019 Chevy 2500, and a 2018 Chevy 2500, as well as 2 laptops, 2 cell phones, an established website, and project management software, JobNimbus.

 

Priced at $580,000, a down payment of $58,000 returns $124,213 in the first year after debt payments – a 214% return on investment!  There is tremendous growth potential for a new owner – expanding the service area, increasing the sales force, and going after more commercial work would undoubtedly boost revenue.

Business Highlights

Year Established: 15+ years

Location: Des Moines, Iowa

Service Area: Central Iowa; primarily within 20-mile radius of Des Moines

Services: Roofing (90%), Gutters & Siding (10%)

Clients: Residents in the area in need of roof repairs and/or maintenance

Lease: Currently leasing a 2,300 sq. ft. office space; commercial space is not required to the run the business

Reason for Selling: Pursuing other (non-compete) ventures

Personnel: 2 W2 employees: 1 Owner + 1 Project Manager/Salesperson, plus  a well-established roster of subcontracted crews  and 1 part-time subcontracted accountant

Seller Training Period: 3-6 months

Growth Opportunities: Expand service area, increase sales force, pursue more commercial work

Current Owners’ Responsibilities: General oversight

Financial Highlights

List Price: $580,000

  • 3-Year Average Cash Flow: $206,878
  • A/R: $103,902
  • Pipeline: Approximately $100k presold for Spring 2021

*amounts may vary

Assets of Business

  • Assets: $240,000+
  • Equipment: 2 Laptops, 2 Cell Phones, basic office furniture
  • Vehicles: $136,376: (2) 2020 H&H 7x14 Dump Trailers, 1 2019 Chevy 2500, 1 2018 Chevy 2500
  • Software/Data:  Website, JobNimbus Data, QuickBooks Data, strong local SEO through GMB
  • Intangible: Word-of-mouth referrals, well-known name, and solid reputation in Central Iowa

 

* 40% Collateralized *

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Dec 2020 Cash
Tax Return
Cash
Tax Return
Cash
Tax Return
Cash
Tax Return
Cash
Notes
20202019201820172016
GROSS SALES$1,353,435$1,448,508$1,341,034$1,206,133$695,152
Net Income Shown on Financial Statement$185,142$254,018$120,966$81,793$69,152
ADDBACKS
Depreciation$0$34,723$760$1,067$4,406
Interest$4,859$5,343$6,752$2,838$421
Meals & Entertainment$7,586$4,316$5,105$5,564$2,931Personal Expense
Health Insurance$91$0$0$0$0Personal Expense
PPP Loan$-9,028$0$0$0$0
TOTAL ADDBACKS$3,508$44,382$12,617$9,469$7,758
Seller's Cash Flow = Total Addbacks + Net Income$188,650$298,400$133,583$91,262$76,910
Profit Margin13.94 %20.60 %9.96 %7.57 %11.06 %

Valuation

Funding Example

Purchase Price:

$580,000

$
%
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:
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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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.