Very Profitable, High Margin Environmental Service Business
It has been a great 19 year run for the founder-owner-seller of this very successful mold remediation business; however, the owner now looks forward to retirement after transferring his company to only its second owner. His imminent retirement could be your opportunity. This Michigan based business is located in a 2400 square foot facility in a conveniently located industrial park in mid-Michigan. The buyer can continue to rent the facility at a favorable $2,000 monthly rate (an attractive 4% of revenues) or relocate the business to suit buyer preferences
The business has consistent annual revenues approaching $550,000 which is heavily (90%) derived from high margin residential customers. The 10% balance comes from commercial accounts. The company “owns” the State of Michigan as there are only two or three other companies that have a business model with mold remediation as their core business. Restoration (fire and flood) businesses misrepresent themselves as having the ability to perform mold remediation, but their results are generally mediocre at best.
This business, to use slang, “blows away the competition.” The business boasts more and higher ratings than all other State of Michigan mold remediation companies. It is no wonder then that the company’s long history of providing excellent service and results enables the business to land new customers primarily through referrals from satisfied customers. Its attractive website also augments the solid word-of-mouth impressions surrounding the business.
Over the past four years, the business has averaged a very impressive annual $283,000 SDE (seller’s discretionary earning – the historical, normalized cash flow available for any owner-operator to both pay himself and service debt). The business is being offered for $590,000, an attractive 2.1x multiple of SDE. Additionally, the seller will offer a generous transition period which (a) is designed to meet the buyer’s needs, and (b) is included in the purchase price.
Two final important pieces of information: (1) the owner generally does not get involved in the mold remediation activities in the field – his field time is limited to estimating jobs; and (2) and a meaningful seller note will be available for a qualified buyer. This business does require an owner/operator that has prior mold or water remediation experience. For more information on this exceptional niche business, please contact Steve Kandt ([email protected]).