A successful Calgary renovation firm
An award winner in their industry!
Normalized Cash Flow: $111,000
What they do – the short version
- Serving home owners, landlords, property management firms, and commercial businesses needing services ranging from ‘handyman’ through to major renovations.
- Experienced staff with their own hand tools.
- The firm owns the needed larger equipment
- Owner prepares quotes
- Second owner (wife) administers the business
- Excellent ratings from previous customers
- Busy almost year-round.
- Continuous improvement based on customer feedback
ImproveCo is a one-stop-shop for renovations and handyman services for both residential and commercial properties.
Company began as a sole proprietorship back in 2003 and incorporated as an Alberta Corporation in 2010.
Full financials for the past three years and a complete list of assets is available to qualified buyers.
The firm is operated from the owner’s acreage and has a business licence for both Calgary and Cochrane. The new owner will have to move the business.
The operator’s wife manages the administration of the business. An outside accountant using Simply Accounting does the internal accounting. This person is willing to stay on with the new owners.
Their own crew consists of three full timers and two part-timers called in as needed.
Each crew member has his own set of tools and vehicles in good professional condition. Business could grow without the need for more equipment.
All their crew has certified training in first aid including CPR. They have an excellent WCB record.
Over the years they have a created a good pool of sub-contractors for specialized work. Their services vary according to the specifics of any specific contract.
ImproveCo’s staff do need some specific skills and all have been subject to background checks before hiring.
The seller believes the business could grow without the need to bring in additional staff.
The firm was seasonal up to 2 years ago. But it has since been steady throughout the year except for a mild to slow down between Christmas and late January.
They have five major suppliers for materials. Some materials are delivered directly to the job site and some are picked up by the owner or crew members.
Much of their work is custom so their ‘on-hand’ inventory needs are slim. Supplies can arrive the same day as ordered or take as long as six weeks. It all depends on the specifications for each individual job.
They do give a one-year warranty on all their jobs. On very rare occasions they have had to go back to make repairs. The seller understands that warranty issues will have to part of the sales contract.
The seller is the general contractor / project manager
Meet with clients, work on estimates/quotes, supervise, client relations, schedule work
Company operations breakdown:
2 full time handymen
1 full time carpenter
Regular subcontractors in place:
Administrator – (Wife)
1 fulltime person – reception, filing, some bookeeping, invoicing, payroll
Regular subcontract in place:
Accountant – responsible for year end, GST filings, personal taxes and corporate. Their Accountant is willing to take on payroll and all bookkeeping for the new owner.
Kitchen renovations, bathroom renovations, building maintenance, smaller residential handyman work, plus continuing commercial renovations as needed for several well-known businesses and other large organizations.
- Meet with client(s)
- Create an estimate (matrix computer program created to show profit margins, operational costs, mark ups)
- Present estimate to the customer (or make bid for the job).
- If/when bid accepted – schedule start and work out staff/subcontractor timelines
- Materials needed vary with project. We offer clients to supply their own materials to lower costs for them.
- Organize staff daily
- Once project is completed, final walkthrough with client
- Invoice and receive payment via credit cards, e-transfer or cheques. They also have financing options in place with a commercial lender.
- A customer policy agreement is also in place
- Payment is due upon receipt (but some contracts have a 30 day payment in place)
ImproveCo has high quality standards. They get 4.7 out of 5 in customer reviews.
New jobs are the result of referrals, repeat customers and word of mouth.
The firm has tried many forms of advertising and found TV spots, professional memberships, and a strong internet presence with a strong website have kept them in the limelight. They are in Yellow Pages and various other directories.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q. Why you are selling?
A. Mostly for health reasons.
Q. In your words, what does the firm do?
A. We supply quality workmanship, integrity and peace of mind to the customer and renovation industry. Our goal is to create a long-lasting legacy of work to be proud of.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A. Manage the team, be experienced in general contracting / project management / excellent communications skills and, most importantly, customer service.
If a second owner is involved, running the finances, materials, would be great skills to have in house.
Q. How long will you stay after the sale to help in the transition?
Q. Can you estimate what it would cost for a competitor to start up?
A. To have in place what we have established – $150,000 then wait years to build up a reputation that brings in new business like we do now.
Q. Will you agree to a non-competition clause?
A. Yes / negotiable
Q. Have the accounts receivable been purged of bad debts? (This will is really a lawyer question).
A. It will be when the sale goes through, we will completely pay out all debts and accounts
Q. Who should buy this business?
A. Someone who has renovations experience wanting to go to the next level and keep increasing their profits.
Q. Where do think the business has a competitive advantage?
A. In this industry, the reputation of bad contractors is heavy, we have worked hard to build a strong reputation of quality work and integrity. Our accreditations and reviews are proof that we are the good guys in a sea of questionable and untrusting. When people hire us, they have peace of mind, that is a rare trait in the Renovation Industry.
Q. Where do think the business has a competitive advantage?
A. In this industry, the reputation of bad contractors is heavy, we have worked hard to build a strong reputation of quality work and integrity. Our accreditations and reviews are proof that we are the good guys in a sea of questionable and untrusting. When people hire us, they have peace of mind, that is a rare trait in the Renovation Industry
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.