Light Construction, 34% Net Profit, Add Locations & Product

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Loyal Employees, Excellent Reputation, Get Paid Same Day

Business Description

This business has a 34 percent profit margin, is easy to manage, owner is only working 10 months of the year, doesn’t require a masters license, etc.

2018 earnings were 318K from 866K in revenues. The trailing 12 months earnings through Sept 30 were 253K from 760K in revenue which is down a little from 2018 because Colorado experienced an unusually cold June, “June-uary” as the news referred to it, and the weather has a large influence on sales in the summer months. They experienced a similar situation in 2009, but the trend of sales has remained constant. There are a lot of special things about this company: The business has maintained a 34 percent profit margin which is very high for a construction company, they don’t have any outgoing sales, they typically turn away work for several months during the busy season, it doesn’t require a license, they can give accurate estimates over the phone, they start and finish their work and get paid in one trip and therefore has no bad debt, has mostly seasonal work that just happens to coincide with the summer school year break, which makes it possible to find competent workers easily each summer. They are on good terms with previous employees, who return from year to year for work in the summer months. They are so seasonal that the current owner spends one month off each winter and only works partial weeks most of the winter which is a great thing for skiing etc. New employees are easy to train with the aid of slideshows and documentation, which illustrate all aspects for the work required to be accomplished correctly. Systems are in place to aid employees in all processes from the incoming phone call to completed job. The company earns a profit on both the product markup and the labor, and this business can be easily grown much larger very inexpensively to build equity.

For Sale:

Light Construction: Home One Day Remodel/Upgrade Company
In Business for Over 16 years

2018 earnings were 318K from 866K in revenues. The trailing 12 months earnings through September 30th were 253K from 760K in revenue in revenue which is down a little from 2018 because Colorado experienced an unusually cold June, “June-uary” as the news referred to it, and the weather has a large influence on sales in the summer months. They have a 34 percent net profit margin which is also extremely rare and valuable in light construction.

The owner is getting older and slowing down, has spent an increasing amount of time off over the last year including most of the Winter months, and as he is slowing down has decided it is best to put his business up for sale.

This company is well established with a great reputation 5 star Google Rating with 81 reviews, have earned Angie’s List Super Service Award many years in a row, and has an A+ BBB rating and have won their Gold Star Certificate Award many times along with Yelp awards, etc. they have many awards and many customer testimonials makes any marketing more effective.

They specialize in installing 2 types of products which improve the homeowners comfort at a low cost compared to the alternatives. They have also installed residential insulation which can also increase their sales year round which would increase earnings and made it possible to keep the employees on full time year-round. Also, information for insulation estimates are very easily obtained during their normal work since the customer’s trust was already gained. The owner will teach the new owners how to bid and install insulation if they would like to work year round and grow the business even more. They have also considered adding solar-tube lighting, and the new owner could add any number of products which could help grow the company and/or give them year-round work. This business would be easy to expand throughout the front range of Colorado with their reputation, website, and efficient model. This will create a soli

About the Business

Location:
Denver, Colorado
Year Established:
2003
Number of Employees:
5
Real Estate:
Owned
Building Sq. Ft.:
2,000
Facilities:
The business is located in a 2,000 square foot office / warehouse, close to downtown Denver, and the building is located literally in the center relative to the work sites. Their office/warehouse is also for sale. It has been updated and remodeled both on the inside and outside, custom to the company’s needs. The building is being offered for only 395K.
Market Outlook/
Competition:
This company is well established with a great reputation 5 star Google Rating with 81 reviews, have earned Angie’s List Super Service Award many years in a row, and has an A+ BBB rating and have won their Gold Star Certificate Award many times along with Yelp awards, etc. they have many awards and many customer testimonials makes any marketing more effective.
Growth & Expansion:
The owner has grown the business from 0 in 2003 to 800K + currently in revenue, while spending 6K a year on advertising. This is less than 1% of the revenues. It took many years to get to this point, but they currently turn away work every day during the peak season because they cannot keep up with demand. This is one of the best parts of this listing, and there are literally dozens of ways to grow this company. They specialize in a minimal amount of products to accomplish the goal of making customers comfortable in their homes and saving energy, so adding products that are popular year-round and can be installed in the winter like insulation, bath fans, ceiling fans, solar lighting tubes, etc, would be a relatively easy task. Working in the solar arena makes sense because Colorado is the 2nd sunniest state in the nation with over 300 days a year of sunny weather a year. The products listed above require the same knowledge, equipment and tools to install as whole house fans. Also, depending on growth, it would be easy to add offices in other locations since the business is so organized and streamlined. The seller says, "The new buyer can grow this company throughout the front range by just leveraging our 5 star online reputation”. They currently advertise in many areas online, and encourages word of mouth and positive testimonials with each installation.
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About the Sale

Reason For Selling:
Slowing down and wants to retire.
Training/Support:
Buyer does not need experience in construction. The owner will not need a specific license. The owner will train the new buyer.
Seller Financing:
10%

Listing Info

ID:
1687004
Ad Detail Views:
241
Asking Price:
$750,000

Gross Revenue:
$866,000
Cash Flow:
$318,987
EBITDA:
$318,987
Inventory:
$55,000
not included in asking price

FF&E:
$30,000
included in asking price

Real Estate:
$395,000
not included in asking price

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Business Listed by

Jeff Chapman Eisnaugle

Business Broker Colorado
License# 100054090

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