High End Homes-Large Roofing Co, Central Mountains CO, 1.3M Earnings

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Excellent Reputation, 80% Recurring Revenue, Loyal Employees
Asking Price:
$4,000,000

Gross Revenue:
$3,560,000
Cash Flow:
$1,300,000
EBITDA:
$1,300,000
Inventory:
$15,000
included in asking price

FF&E:
$350,000
included in asking price

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Business Description

Residential & Commercial Roofing Business Servicing The Central Mountains of CO

2017 generated $1.3M in earnings from $3.56M in revenues. This company has a 26% profit margin which is twice what most roofers have! Plus, he is having a record start for 2018 in both work in progress and new future contracts. As of early March, he has more than $1M in work signed for 2018 already which is a lot more than the same time in 2017. This will provide a great start to a new buyer because many of these jobs will not be started or be completed until Summer.

This company has 80% recurring revenue because most of their work comes from the same local property managers, architects, and contractors that they have well established relationships with.

Sales Price includes $350,000 in Assets that includes 12 Trucks including a new gutter truck and 4 Trailers - 100% Debt Free! They also have a K style rollout gutter machine.

The owner works 25 hours a week because he has a manager that practically runs this company for him. He has 25 employees that are all on payroll because he doesn’t use subs which results in being able to hold onto quality experienced employees that most roofers can’t. It also reduces labor audit risk. The owner can train a new buyer how to run the company.

Location: Central Mountains, Colorado
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The Deal Structure: $4M Sales Price and a buyer gets the business Debt Free. The SBA has changed their requirements as of January 1 2018. Now a qualified buyer only has to come up with 10% of the down payment and the bank will bring the rest. This means that a buyer can currently get their $1.3M in earnings with only $400K that a buyer will have to give to a bank plus working capital. The Seller will carry 5% on a sales price of $4M. The seller is open to either an Asset or Stock Sale.
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Brief Overview and Selling Points:

This company is currently one of the largest high end roofing companies in their market. They do “premium” high margin jobs working with property managers, architects, and contractors who demand quality, reliable, and often custom work. They are the dependable high quality choice for contractors which is the reason why they have grown over the years and can sustain a 26% earnings profit margin. 2018 has a record level of jobs on the books and they are adding to that every week.

They work all year round and add an hourly fee for any snow mitigation that might be needed during the Winter and Spring. Colorado is the 2nd sunniest state and is one of the most beautiful places in the World. Residents love living here because of the lifestyle choices, natural beauty, recreational choices, and quality of life. The owner only works 25 hours a week so he has time to mountain bike, ski, fish, hike, etc. The area is very active and healthy and should continue to grow in population regardless of the overall economy because of its popularity and the financial stability of its residents. This area was not impacted as much as the rest of the country in the last downturn and won’t be in the next one either. The people this company serves have the ability to maintain their lifestyle regardless of the economy. These are wealthy people that have already made their money. The owner relies on his managers to manage the work, employees, bidding, etc.

A new owner can increase sales by adding a sales person or by putting in more hours than the current owner. He plans to grow the company in 2018 which is already happening. The owner has the ability to increase both employees and equipment as needed. Plus, this company has a very well established 80% recurring relationships with contractors, architects, and foremen who prefer to us

About the Business

Year Established:
2013
Number of Employees:
25
Real Estate:
Leased
Building Sq. Ft.:
2,400
Lease Rate/Sq. Ft./Mo.:
$3,200.00
Facilities:
They have a staging facility that is 2,400 square feet with an office that a new owner can take over the 3,200 month rent. There are two garage doors and customer and employee parking. The lease will not be an issue for this business.
Market Outlook/
Competition:
This company is currently one of the largest high end roofing companies in their market. They do “premium” high margin jobs working with property managers, architects, and contractors who demand quality, reliable, and often custom work. They are the dependable high quality choice for contractors which is the reason why they have grown over the years and can sustain a 26% earnings profit margin. 2018 has a record level of jobs on the books and they are adding to that every week.
Growth & Expansion:
A new owner can increase sales by adding a sales person or by putting in more hours than the current owner. He plans to grow the company in 2018 which is already happening. The owner has the ability to increase both employees and equipment as needed. Plus, this company has a very well established 80% recurring relationships with contractors, architects, and foremen who prefer to use them as their first choice. The great thing about this is that this company will not change the day after the closing. Customers and their representatives will still be dealing directly with the manager and their reputation for dependability will continue to drive new jobs. A new owner can also do more Gutters that are not just for roofing jobs, add more below grade waterproofing, and add more insulation. The owner states that this “business can easily grow to $10M in revenue for someone who wants to put the work in.”
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About the Sale

Reason For Selling:
Has 2 other companies, doesn't have time to run all 3 and wants to travel more
Training/Support:
The seller will stay on for a reasonable amount of time to ensure a smooth transition of employee, vendor, and customer relationships. He can teach a new owner what they need to know. The owner will continue to live in the area and is available to help out as needed. The seller has a wealth of knowledge and is committed to help the new owner take the business to the next level.
Seller Financing:
5%

Listing Info

ID:
1480744
Ad Detail Views:
137

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Business Listed by

Jeff Chapman Eisnaugle

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U.S. Census Data for Eagle County, CO
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Source: Decennial Census (2010), United States Census Bureau.

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Source: American Community Survey (2010-2014), United States Census Bureau.

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