Virtual Home Remodeling 50%+ Profit Growth, $2M+ Order Backlog.
Outsourced Construction. 10% Down SBA Loan Possible
(Seller's Discretionary Earnings)
included in asking price
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BBB A+ Rating. 4.5 Star Yelp.Excellent SBA leveraged buyout candidate. Put $240,000 (10%) down and net $550,000 per year AFTER debt service. A 230% cash-on-cash return. Structured for rapid growth and ease of management. This stellar 4 year business is essentially a “pass-through” sales company that has a virtual construction department via outsourced, licensed contractors. The outsourcing of construction activity is made possible by an abundance of local hungry, experienced licensed and bonded contractors. This outsourcing allows the business to focus on impressive sales growth and insulates it from labor cost overruns, worker injury and workflow fluctuations.
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This business was listed previously. Because of the rapid growth, the Discretionary Income and Pricing have been updated to reflect increased value. A buyer may wish to act quickly before the value may rise again.
With just 16 employees including 10 salespersons and working owner / manager, the low headcount is exceptional in relation to revenue. High number of salespersons explains stellar growth. Lower organization complexity makes flow of information far easier than most businesses of comparable revenue. Making pricing simple, the salespersons quote prices from an itemized detailed price list. The main product offerings are kitchen and bathroom remodels, room additions, roofing, windows and air conditioning. Because of the virtual outsourcing model with multiple contractors the business can offer a wide variety of services less available with vertically integrated competitors whose priority is to keep their specialized core workforce busy.
With ongoing flow of down payments and progress payments, capital is not a bottleneck to rapid growth. With the commission-only salesforce and generous profit markups on outsourced construction costs help keep variable costs more than 80% of sales. The ultra-low fixed overhead percent results in predictable net profit percentages at nearly any level of revenue.
The buyer for this business should have marketing and sales savvy in addition to business management experience. Because of the outsourcing of construction activities, the buyer need not have construction experience. Buyer need not have contractor’s license.
A qualified buyer may receive a SBA acquisition Financing with SBA loan with 10% - 20% Down Payment creating impressive after-debt-service cash flow. After returned NDA, we can provide full 13+ page Business Summary with 4 year P&Ls that will answer 90% of your questions.
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