ConstructCo Sales & Installations
Three Year Average Normalized Cash Flow: $472,000
BDC may lend up to 90% on this business to a qualified buyer
What they Do – The short version
- ConstructCo is an established, profitable business
- Offering Specialized Sales, Service & Installation
- Has generated impressive profits for more than 13 years through good and bad economic times
- A turn key business with great ownership benefits
- In addition to offering general training, the retiring owners will convey valuable learned business acumen in; sales, installations, equipment, new methods advertising, staffing, product, protections, vendor/customer relations
- There is a policy and procedure manual
- Excellent on-line presence; landing pages, ads, websites with top exposure & ranking
- Knowledgeable, trained, reliable staff can be asked to stay
- Desirable location
Both their equipment list and past financials are available to qualified buyers.
A qualified buyer will need . . .
- To replace two positions. The current owners can assist with this.
- To assume vendor relationships.
- Sufficient financial capacity, or pre-qualified for the purchase.
- BDC may lend up to 90% on this business to a qualified buyer
ConstructCo works out of a well suited facility. The lease has a transferable renewal clause.
There is a policy and procedures manual to smooth the transition to new owners.
Inventory & consumables are low 6 figures. A large percentage of sales are “semi”-custom with a customer deposit required prior to ordering, this means faster delivery (2-3 weeks), lower on-hand inventory and reduced cash flow requirements.
Staff is as many as two installation crews, an Installation Manager, a General/Sales/Office Manager and two sales and warehouse staff. There is experienced staff in administration, sales, production and installations. All current staff have been with the business for two years or more; some more than 6 years.
Busiest sales & installation times are in the Fall, then Spring and Summer. Their slowest (but steady) time is January and February.
Equipment is all in good working order and has been well maintained by the current owner.
Their WCB history is good with no penalties on record in 13 years.
Accounts receivable has no bad debts and all receivables listed have deposits and dates of delivery or installation. The bookkeeping is up to date and kept current daily.
Warranties are minimal; labor and travel are charged. Non-warranty repairs are fully charged and contributes to revenue.
ConstructCo had spent heavily on print advertising in the past. Now most leads are generated by on-line marketing and the constant referrals earned from 14 years of relationship building and customer satisfaction. They have two main websites that are mobile friendly with #1, top of first page organic ranking. Also, Face Book, Twitter and two landing pages.
What is included?
ConstructCo operating assets include:
- trucks/trailers & installation equipment; maintained and in good working order
- over 30 business relevant domain names, as well as name & slogan trademarks
- policy & procedure manual
- retail displays, racking, office furniture
- warehouse racking, equipment, forklift
- websites, established name, domain names, trade marks
- computers, server, phones and software, alarm equipment
- vendor, supplier, customer lists
- proprietary unique delivery system
What is not included?
- building is leased, transferable & available to new owners
- related stock and inventory cost determined at sale
Why you are selling?
Owners are selling because they need to retire.
How long will you stay after the sale to help in the transition?
This will be negotiable; for a reasonable, agreed time to train for new owners.
What functions does the owner perform? What talents will the new owner have to replace when you leave?
Owner 1: Currently acting as Estimator. Also, manages installers jobs, oversees warehouse operations, equipment repair and maintenance.. He has construction, computer, employee supervision, customer service skills and proficient driving truck with trailer.
Owner 2: Currently General Manager: oversee company operations, and advertising. Has administrative, bookkeeping, computer, customer service and management skills.
These positions can be hired out and have been in the past. These positions are currently being advertised to find suitable replacements.
Can you estimate what it would cost for a competitor to start up?
ConstructCo’s many years developing this business and reputation has given them a solid position and significant knowledge and advantage. It would take a -start up- considerable TIME, staffing & training, product search & testing and capital, however, they would not have access to same “best” product, so they would not be direct competition. With supplier preference earned from performance, they sell the best products available in this industry and choose not to compete in the lower cost market.
Growth potential! Revenue expansion!
ConstructCo has generated impressive sales in their industry for more than thirteen years.
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal
The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.