Stone Restoration & Tile Care for Businesses and Hotels
Over 1,600 active clients in Phoenix Metro and low overhead that produces a 44% profit!
This business over 1,600 active clients in Phoenix Metro and low overhead costs that produce a 44% profit! Established in 2013, this full-service stone cleaning, honing, polishing, and repair company that also provides full-service carpet and tile care operates in the Phoenix Metro area. Two efficient technicians manage the entire on-site workload which involves cleaning, sealing, polishing, honing, stripping, repair, and treatment for all-natural stones as well as tile and carpet cleaning. The staff also includes a manager, an administrator/salesperson, and an overseer of the financials. Two vans are included in the sale and contain hot water extraction machines, high-speed weighted buffers, tools, and cleaning supplies. All work is done for high-end homeowners, commercial businesses, hotels, banks, condominiums, or anyone with natural stone surfaces within the Phoenix Metro area.
- Year Established in Arizona: 2013
- Location and Service Area: Phoenix Metro Area
- Clients: Businesses, hotels, high end homes and anyone with natural stone surfaces
- Active Clients: 1,605 current active clients
- Services: Full-service stone restoration including cleaning, honing, polishing, and repair, as well as full-service carpet and tile care
- Lease: 1,000: Warehouse, inside parking, virtual administrative office
- Reason for Selling: Retirement
- Employees: 5: 2 Technicians, 1 manager, 1 administrative/sales, 1 financial oversight
- Seller Training Period: 3 months
- Growth Opportunities: Advertise, expand the current business model, infuse capital to add another can to increase capacity, maximize current assets with extended hours
- Current Owner’s Responsibilities: Scheduling and operations
- List Price: $640,000
- Gross Sales:
- 2019: $404,026
- 2018: $370,485
- 2017: $236,573
- Cash Flow:
- 2019: $179,203
- 2018: $232,288
- Assets Included in Purchase*
- Equipment: $115,000: 2 vans equipped with truck-mounted hot water extraction equipment, high-speed weighted buffers, tools, and supplies
- Intangible Assets: Superior social media reviews, excellent reputation, high quality services, well-trained team, excellent profit margins
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|P&L Statement||P&L Statement||Notes|
|Net Income Shown on Financial Statement||$36,771||$154,080||$62,350|
|Compensation to Owner||$114,000||$50,000||$25,000|
|11% Tax on total W2 Salaries||$12,540||$5,500||$2,750|
|Meals & Entertainment||$390||$253||$627||Personal expense|
|Cell Phone||$1,080||$1,080||$1,080||$90/month for personal cell phone|
|Insurance||$10,780||$10,780||$10,780||$898.36/month for personal insurance|
|One Degree Insurance||$564||$564||$0||Non-onward going expense|
|Seller's Cash Flow = Total Addbacks + Net Income||$179,203||$232,288||$142,293|
|Profit Margin||44.35 %||62.70 %||60.15 %|
- Profit Margin 2019: 91%
- High-end homeowners
- Anyone with natural stone surfaces
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Full-service stone maintenance including:
Full-service carpet cleaning
Tile & grout cleaning
Total Employees: 5
- 2 Technicians
- 1 Manager
- 1 Administrative
- 1 Financial oversight
- Expand the current business model
- Infuse capital to add another van to increase capacity
- Maximize current assets with extended hours
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 multiple is prescribed 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 multiple.
For this business, a 3 Year Average Cash Flow was used with a prescribed multiple of 3.45. With this information, the computation is as follows:
$184,595 x 3.45 = $636,853
The fair market value found above positions the business list price at $640,000
Purchase Price: $640,000
10%Buyer Down Payment: $64,000
10% Seller Financing: $64,000
80%Bank Loan: $512,000
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,193.
Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $5,684.
After business expenses and loan payments, a buyer with a 10% down payment of $64,000 would retain a profit of $102,066 which results in a 159.5% 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 $640,000 with the terms listed above, the coverage ratio is 2.24.
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.
3 year average cash flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
3 year average cash flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: