RenovatorCo

A leader in the Edmonton Renovation Industry

RenovatorCo

A leader in the Edmonton Renovation Industry

Price: $300,000

Normalized Cash Flow: $150,000

Terms may available to qualified buyers

$150,000 down

What they do – the short version

  • RenovationCoEdmontonSource clients looking to renovate their home or commercial premises.
  • Other source of generating leads: the owner receives close to 40 leads a month from a top hardware store
  • Other source of project leads: commercial bidding from projects ranging from $100,000.00 to two million dollars.
  • Commercial leads are send by via email with proper drawing and blueprints. Once received the owner will proceed with calculating an estimate
  • The owner or staff member calls customer to set up a time to visit the project
  • The owner visits the premises to discuss what can be done.
  • The owner and customer arrive at an agreement about the work to be completed.
  • The owner prepares a quote and submits it to the customer
  • Upon the customer’s acceptance, the owner writes a contract agreement laying out the work to be done by his staff plus the needed sub trades to complete the job.
  • Customer signs the contract and provides the first deposit (paid by check, credit card or cash)
  • Depending on the size of the project, the owner collects a second installment. (second installment is only paid once 60% of the project is completed)
  • Upon completion, the owner and the customer do a walkthrough to check if there are any touch-ups.
  • After the walk through, the owner collects final payments.

 Summary

RenovatorCo is a complete home and commercial renovation company with both residential customers and ongoing commercial relationships. They have been doing business in Edmonton for 16 years.

Operations

This is a home office based business with storage facilities. The business runs with the owner, two trade ticketed employees and any number of sub contractors depending on the jobs on hand.

Their use of sub trades has been growing as their business has grown.

This is not a seasonal business. Renovations take place all year long.

Equipment needs are minimal since their sub trades use their own tools and associated machinery.

They schedule their active jobs Monday through Saturday from 8:00 am to 6:00 pm.

RenovatorCo does their own bookkeeping in-house.

Customer Base

Customers arrive through referrals, word of mouth, an on-line advertising company and their very professional web site.

There are some repeat customers but most are new. They do not concentrate on small jobs. Their top five customers in any year will account for 80 percent of their business.

A measurable amount of their business comes from recommendations by customers and suppliers.

Further Information

Three years of financial statements and a complete equipment list is available for qualified buyers.

Management Discussion

Q. Why you are selling?

A.Moving and focusing on another business

Q,In your words, what does the firm do?

A. Complete general renovation.

Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?

A, The owner does the estimates and the operation manager site visits. The new owner will have to know how to bid.

Q. How long will you stay after the sale to help in the transition?

A. A couple of months.

Q. Will you agree to a non-competition clause?

A. Yes

Q. Who should by this business?

A. Someone with experience in renovation and estimating.

Q. Where do think the business has a competitive advantage?

A. We have been in the business for over 15 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

NOTICE

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.

David Page | An Alberta Business Broker

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