Big Profitable Multi Family Real Estate Service Co - SALE PENDING
- Asking Price
This company is a jewel. Started from scratch 25 years ago, it has grown into a successful, high cash flowing “b to b” Michigan service business which offers its primarily institutional and commercial real estate customers a multitude of skilled disciplines through its 65 full-time, loyal, non-union employees and augmented by more than 40 established sub-contractor relationships.
Located in a suburban industrial park in a major, desirable West Michigan city, the business occupies a large, attractive, newer custom facility built for the company by the owners and leased to the business. The real estate can be leased at a market rate by the buyer or purchased in a separate transaction.
The company has created incredible customer loyalty by doing anything and everything its customers could dream of. The business provides its apartment and dormitory owners and managers large projects such as rebuilds, additions, new roofs, painting inside and out, re-carpeting entire facilities, to name a few. On the other end of the spectrum, the business has a specialty of turning apartments at the end of leases – when occupying parties leave, the company sends in an army of workers to seemingly instantly clean, patch walls, paint, re-carpet, upgrade fixtures, well you get the idea. This ultra-fast turn makes for a seamless transition from former tenant to new tenant which makes for both happy landlords and happy tenants. Years and years of fast, flawless service has made this business the “go-to” service company for owners of large apartment complexes, college and university dorms, residential medical facilities and the like.
In addition to offering its customers the super convenience of “it takes only one call to do virtually any and all their work,” this business has taken great pride in its loyalty and care for both employees and subcontractors. With less than a 3% turnover rate in 2022 and an exemplary leadership team, this company boasts a very positive work environment for all.
The business manages its financial statements with the same attention it uses to care for its customers’ properties. Over the four years ending in 2021, the business had average annual EBITDA of $2.2 million on average annual revenues of $12.3 million, and that includes the sub-par results of 2020, the Covid year. And 2022 will be the best year yet. A terrific seven month year-to-date period (July, 2022 revenues were up 53% over July, 2021) coupled with an anticipated very strong final five months, 2022 expectations are for $4.0 million of EBITDA on revenues of $20.0 million. And with apartments and dorms being built in West Michigan at unprecedented levels, prospects for 2023 and beyond have the sellers beaming.
After 25 years of full attention to their customers, the owners look forward to some self-indulgence after successfully transitioning their business to new ownership. The business is being offered for $14.0 million, a price which includes $1.2 million (market value) of rolling stock – cars, trucks, and trailers and $1.0 million of inventory (at cost). In an anticipated “cash free – debt free” transaction, the sellers intend to retain cash and A/R while retiring all liabilities. They also plan to carry a meaningful seller note for a qualified buyer.
For more information on this outstanding niche business with significant barriers to entry, please contact Mike Greengard ([email protected]) or call (616-450-0707) anytime.
- Reference ID
- Construction services, Commercial Painting
- West Michigan