Successful 66 Year Old Exterior Home Service Biz
- Asking Price
We are pleased to offer a highly profitable, well-established business which performs a multitude of exterior services on houses and condos.
The second generation co-owners of this attractive business are planning to transition to a large, non-competitive business opportunity which precludes their continuing to own and operate their successful exterior home service business. Their career change could be your opportunity.
This business is ideally located in mid-Michigan with plenty of large suburban developments within a 30 minute drive of the company. Approximately one-third of the company’s business comes from condo work controlled by friendly property managers. The business operates with a core group of 10 full-time, skilled, loyal, non-union employees whose average pay rate is approximately $25 per hour.
The company generates business through well-paid captive commission sales people. An attractive and impressive website also has proved to be a strong marketing tool. Five star ratings continue to assist sales efforts. The salaried office staff includes a general manager, two project managers, a project coordinator, and one clerical employee. Salaries range from $55,000 to $95,000 for these five employees.
40% of total revenues comes from roofing projects; 20% from siding jobs; 15% from windows; 15% from repair projects; and 10% from decking jobs. The company’s equipment (with an estimated value in place of nearly $200,000) is all included in the sale and is stored at a rented facility conveniently located within a 30 minute drive of 90% of the company’s clients (primarily homeowners, condo owners, and property managers).
The business has generated $4.3 million of revenues each of the past two years (2021 and 2022) with EBITDA averaging more than $500,000 annually. The business is being offered for $1.35 million, a very attractive 2.6x multiple of the last two year’s average EBITDA.
The cash flow of this transaction is excellent. With 10% buyer cash and a 15% seller note, the successful buyer should qualify for a SBA term loan for 75% of the purchase price. Debt service (principal + interest) for the combination of the seller note and SBA term loan will be approximately $165,000 which leaves on average an impressive $300,000(+) annual free cash flow after both debt services and paying the fully staffed business. Importantly, the combination of the company’s strong staff and established market penetration gives the buyer the option of absentee ownership.
To learn more about this excellent 66 year-old business with an outstanding cash flow, please contact Mike Greengard ([email protected] or 616-450-0707).
- Reference ID
- Construction, Construction services, Services