Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1060319
After a great 15 year run in the spray foam insulation business, the owner plans to sell his successful and highly profitable West Michigan company to a new owner-operator and retire after an adequate transition period for the buyer.
The business is housed in a functional and attractive 4,200 square foot commercial condo in a desirable West Michigan light industrial area. The site is conveniently located two minutes from a major highway. The condo is owned by the seller and available for lease or purchase under favorable terms. Alternatively, the successful buyer can elect to relocate the business elsewhere. There are three (not counting the owner) well compensated, non-union, W-2 employees. All are loyal, skilled and well-trained.
Over the past four years, the business has enjoyed average annual revenues of $650,000 while recording a very impressive average annual SDE (seller’s discretionary earnings – historical cash flow available to pay an owner-operator and service debt) of an ample $215,000. The business is attractively priced at $539,000 which is a favorable 2.5x multiple of SDE. And for a qualified but under-capitalized buyer, the seller will carry a $100,000 seller note with favorable terms.
70% of revenues come from contractors/builders with no customer concentration. The balance comes directly from individual homeowners. 70% of revenues come from new construction with the balance divided between retro-fit insulation jobs and small commercial projects.
Business is generated by repeat work from contractors, word-of-mouth from satisfied home owner customers, the company’s attractive website and annual appearances at three popular West Michigan trade shows. The company’s use of Icynene-LaPolla, (a premier manufacturer of expanding foam insulation) assures maximum benefit to customers which includes exceptionally high energy efficiency, comfortable and healthy homes.
The company comes with two self contained spray foam rigs along with a wealth of production tools. The fixed assets have an estimated value of nearly $100,000, all of which is included in the sales price. These items will provide a buyer with a solid collateral position to help secure a meaningful SBA bank loan while minimizing future capex requirements.
The seller anticipates an asset sale in which he retains cash and accounts receivable while retiring all liabilities. The buyer, in addition to receiving the goodwill of the business, will get all the fixed assets and approximately $30,000 of inventory.
The combination of (a) consistent and strong cash flow; (b) a strong base of fixed assets; (c) a favorable listing price; and (d) a six figure seller note should make a meaningful SBA loan very likely even with a buyer cash investment of less than $75,000. To learn more about this outstanding, cash-flowing, niche business, please contact Mike Greengard (email@example.com).
Located in an attractive 4,200 sf commercial condo in a desirable West Michigan industrial area, conveniently located two minutes from a major highway.
Location(s): West Michigan
Asking Price: $539,000
Cash Flow: $215,000