Profitable, Value-Priced Remediation Business
JULY 27, 2023
This mid-Michigan business opportunity was started in 2020 by three equal partners. In 2021, the first full year of operation, the company which specializes in asbestos abatement, mold remediation, asbestos testing and interior demolition registered positive operating results. 2022 got off to a great start before the managing partner took ill and was medically disqualified. The two remaining partners purchased the third partner’s interest while running the business on a part-time basis and simultaneously looking for a new operations manager.
The strong start to 2022 waned without a day-to-day manager in the business; however, the business’s course was corrected late in 2022 as the two surviving partners became more familiar with the operation. Profits from the first half of 2023 were excellent motivating the owners to actively pursue a new owner-operator so that they can concentrate on their two other larger, non-competitive businesses. The highly motivated sellers are offering an aggressive selling price in order to get a buyer installed on a timely basis. The transaction is intended to be “bank free” in order to facilitate a sale.
The business, with four large customers and scores of smaller ones generates $2.0 million of annual revenues. The company employs six skilled, non-union employees who have an average hourly wage rate of $22. The company’s equipment, with an estimated value in place of $200,000, is (a) included in the sale, and (b) stored at a rented facility conveniently located near 90% of the company’s customers.
The cash flow of this transaction is enticing to say the least: the business has a current annualized, normalized SDE (SDE = the cash flow available to pay an owner-operator and service debt) of $270,000. The sellers propose a $495,000 purchase price comprised of three components:
- $125,000 cash at close (which is less the $200,000 current market value of the equipment included in the sale);
- A $250,000 7.0% seller note with 48 equal monthly payments of $5950 beginning the 7th month after the purchase date;
- A $125,000 earn-out with annual payments representing 10% of annual revenues > $1.75 million. The earn-out ends as soon as the sellers receive $125,000 or four years after the closing date, whichever comes first.
To learn more about this excellent, value priced, banking-free business opportunity and its outstanding annual SDE cash flow of $200,000 after debt service, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com or 616-450-0707).
Asking: $495,000
Cash flow: $270,000
Gross: $2,000,000
Reference ID MG072723
Categories: Construction services, Remodeling, Environmental, Special Biz
Contact information
Michael Greengard
mgreengard@praxisbusinessbrokers.com
616-450-0707