Details
| Asking Price: |
$4,600,000 |
| Annual Sales: |
$4,318,848 |
| SDE: |
$1,726,151 |
| Inventory: | $250,000 |
| FF&E: | $500,000 |
| Real Estate: | Lease |
| Employees: | 1 FT Owner 12 FT |
| Location: | Northern Front Range of Colorado |
| Reason For Sale: | Other Business Interests |
Business Description
Growing company with seasoned staff and protected territory for best-in-class product that is difficult to obtain because of exclusivity. The Seller has been a dealer for these same products in other states for many years and just recently opened up Colorado. The product is not disclosed as confidentiality is demanded. Upon completion of Non-Disclosure Agreement (NDA) and initial buyer qualification, more info will be disclosed. This is NOT a franchise. Competition is very limited. Demand is expected to increase.
A salesperson has been fully trained and is now delivering the full volume of sales. This person knows the company is for sale and is fully supportive of new ownership. The current owner provides all of the project management needed and still has spare time. Most of the labor is provided by trained employees with company owned equipment but company does utilize specialty sub-contractors. Maintenance after the sale is provided by a separate contractor but this can be moved in-house.
Customers provide a hefty deposit, which exceeds the material costs, and they make a progress payment as labor has been delivered, so working capital need is very low.
This company serves the Northern Front Range of Colorado (from Denver to Wyoming) and can be expanded along the entire Front Range and into the mountain communities. It currently operates from a home office and rents a yard for equipment and product storage, and can be relocated anywhere along the Front Range.
The company’s revenues have been steady for the last three years with no economic impact from the COVID-19 pandemic. Product from the manufacturer has been available while competitive lines have seen supply chain issues. Other competitors offer product which is less than favorable for this climate and not as profitable.
Key Statistics
- Average Job Size: $150,000
- Gross Profit Margin: 42%
- Current capacity is about 1 job per week
- 12 Full Time Employees (work is year-round)
The ideal buyer is someone with construction project management skills and sales or business development experience. Buyer must be comfortable working with high-net-worth individuals. The business can be run remotely, however, it is strongly suggested that the Buyer learn the product line and installation processes and also perform direct sales.
There are multiple areas for business expansion. South of Denver and into Colorado Springs and west into the mountains has been requesting product but the current owner did not want to expand until Northern Colorado is mature. Additional crews would be needed but can be trained with the current crew. The company can also provide monthly maintenance services for existing clients and for other suppliers but has chosen to focus initially on installations because of the profitability.
This business was created in Colorado after the model was established in another state. From inception, the goal was to build it to this level and then exit while there is still much room for expansion. The hardest part of the business has been delivered: creating the market, establishing market dominance, and training all of the staff and contractors. The Buyer of this business can talk with previous buyers that have done this with this Seller. Seller is moving to another state to create a similar business, which will not compete. A non-compete and non-solicit agreement will be provided with the sale.
Represented by Bill Scott. Tell me more about this business.