LOWER PRICE! Res & Comm Full Service Sales & Installation Fence Co
Recurring Revenue, Great Reputation, No Const Exp Necessary, Loyal Employees
not included in asking price
included in asking price
not included in asking price
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SOUTHERN COLORADO FENCE COMPANY
This is a full service sales and installation fence company. They were established in 1970 as a family owned company and specialize in commercial, agricultural, and residential fencing of most types.
Their 2017 Fiscal Year ending April 2018 had 760,571 in revenues and 231,651 in earnings. The most recent trailing 12 months revenues are 861K with earnings of 224K. This will qualify for an SBA loan with a 10% down payment to the bank. This means that a buyer can buy this with only a 60K down payment plus working capital which should be a total of 95K. Their property is for sale separately.
The Sales Price was lowered to 550K plus inventory. The sales price INCLUDES their equipment and vehicles. They have approximately 235K in current value assets and 80K in inventory. This has already had a bank look at it that said they will approve a SBA loan for a qualified buyer. The sales price has been lowered to less than 2 1/2 times the 224K in earnings and includes all assets except the inventory and the real estate. The business continues to grow almost every year. In fact, the revenues have steadily grown at 8% a year with the bottom line growing 15% a year for over 5 years now.
The risk in buying service/construction/sales companies is whether you will have new jobs post closing and whether you can grow the business. They have an estimated 50% plus in recurring revenue and do very little advertising. They spend less than 2,500 in advertising every year. A buyer will get a business that has both work in progress and work waiting to be done. In other words, this business will not change the day of the closing. This company’s revenues come to them consistently from long term customers that pay 100% of the time and pay in a timely manner.
They specialize in the installation of residential and commercial chain link, cedar, PVC, decorative ornamental steel, farm and ranch and game fencing. They also install electric gate operators on residential and commercial gates. They also do installation and rental of temporary construction fence panels. They also sell to the public at their retail sales office located on the premises as well as fabricate residential and commercial gates in their large shop area.
They work with a large number of local and statewide general contractors on local projects and have had requests to work outside the Valley on other projects but have chosen not to because of the local workload and to enable their employees to be home at night with their families. They work with many of the local 14 school districts, two colleges, 20 towns, six counties and state entities, such as Colorado Dept. of Transportation and Colorado Parks and Wildlife.
The sellers have stated several times that they could be much larger if they were trying to grow it. They are retiring and have kept the company at a comfortable size for years. No construction experience is necessary.
Location: San Luis Valley, CO
Email email@example.com or call Jeff Chapman at 303-905-7607 to discuss the business
Brief Overview and Selling Points:
They are the largest fencing company in Southern Colorado. They service an area that takes them up to 100 miles in every direction. This is a big advantage. Very few of their contracts require that they need to pull a permit. Most of their jobs take two weeks or less to complete with the average job being closer to one week. Their employees don’t mind the short term travel. They feel that the company could be a lot bigger with some advertising along with a better website with some SEO. They are currently growing very nicely with little to no effort.
There are two to three full time W-2 employees with others that are hired
About the Business
Contact the Seller
- Year Established:
- Number of Employees:
- Real Estate:
The Property is just over three acres with 4 buildings and there is still a lot of room to grow on the property. Everything is in great shape. The main building has an office, employee lounge, full kitchen, storage room which could be used for an additional office and is designed to be a comfortable place to work. The business has the largest retail fence sales yard in the area, a welding shop for manufacturing gates and other items as well as a complete line of chain link fence hardware and fittings. They are located on a main highway between two large towns. Their main income is selling and installing fence and they have the retail yard for do-it-yourself customers. The business also has temporary rental fence for construction job sites. The property is being offered for 450K to the buyer of the business only. The property is being offered separately from the business because it is owned by the owners of the business individually.
They are the largest fencing company in Southern Colorado. They service an area that takes them up to 100 miles in every direction. This is a big advantage. Very few of their contracts require that they need to pull a permit. Most of their jobs take two weeks or less to complete with the average job being closer to one week. Their employees don’t mind the short term travel.
Growth & Expansion:
Marketing: Because of their good reputation, highly visible location, long term customer relations, limited competition and a fully stocked retail yard, very little advertising is needed. The new buyer can grow this company through additional advertising, adding a part time salesperson, more laborers, and by just accepting more of the work being shown to them. They also have zero social media and social media marketing. No SEO, no Facebook, no LinkedIn, etc.
About the Sale
- Reason For Selling:
They want to fully retire
The sellers will stay on as long as the buyer would like them to. They will ensure a comfortable transition of employee, vendor, and customer relationships. The sellers have a wealth of knowledge are committed to help the new owner take the business to the next level.
- Seller Financing:
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