15 Year Old Stone, Fabrication and On Site Installation Co, Denver Location, Great Reputation

Financial & Assets Details

About the Business

Business Description

15 Year Old Stone, Fabrication, and On-Site Installation Co

The 2022 revenues were 4.04M with earnings of 435K. 2021 revenues were 4.8M with 730K in earnings.

Until December 31st 2021, the current owner was responsible for sales and his ex-partner was responsible for the business side. They parted ways December 31, 2021 when he became responsible for both. The result was that he realized that being responsible for both reduced his time and results on the sales side while realizing he didn’t enjoy the business side of the business. He will consider staying on as a salesperson with a heavy emphasis on commission-based compensation and will also consider keeping some ownership for the right buyer(Keeping ownership is not a deal breaker).

When he put the business up for sale in May of 2022, he was not enjoying his job the way he used to and had already stepped back a little which included a long trip to Europe. He also bought and installed a new CNC stone cutting machine. This expensive upgrade cost them several days of distractions in early June when it was installed, and he had to train his employees. He now understands that he needs to focus back on sales which he has done and as of September of 2022, he has a full backlog which means that he will finish the year strong. There is nothing wrong with him or the business. He just needed some time off and is looking for a new partner or owner to handle to business who he will work with or for if they want him. The last 4 months of 2022 showed significant improvement over the previous 4 months.

88% of their revenues are recurring. They get 70% of their revenues from builders and 18% from remodelers. 50% of their work is custom homes and the other 50% are commercial jobs. Their jobs include several hotels, stadiums, and they work with several high-end custom builders who will be busy regardless of a downturn.

They offer custom-fit Granite, Marble, Limestone, Onyx, Travertine, Soapstone, Quartzite, Porcelain, and Quartz. They do Kitchens, Bathrooms, Fireplaces, BBQ and all kinds of Special Projects. They do mostly residential work and have a very high percentage of referrals. They have a full pipeline again currently.

This company has a great reputation as proven by a 5 star Google Rating, 4.9 star Houzz, 5-star Yelp, 4.8 star Angi, and A+ with the Denver Better Business Bureau. The company has won 3 Houzz Awards, 4 Houzz Badges, awards in every year of the Parade of Homes, and is a member of the Marble Institute of America. The company also has a .87 modification rating for their workman’s comp insurance which means they have been a very safe business for the last 3 years. This company’s ratings are very valuable to the new owner. It takes years to get this many positive reviews and a model that works.

The owner maintains a 40 to 50-hour work week. He will either stay on in sales or offer a full transition for as long as the new buyer wants him to.

You also get approximately 700K in current value Assets! This includes 560K in Equipment, 95K in 3 Trucks and 2 cars, 25K in Tools, and 20K in Office Equipment.

Location: The business is located in Denver.

A Sales Price has been lowered to 1.6M from 1.9M plus inventory which is a great price for a company with 4M in revenues, 88% Recurring Revenues, 5 star Google Rating, 2 months of backlog, and 700K in assets. Even though, he took a bit of a break in the spring, he believes the steady increase in revenues will continue based on the steadily increasing population in Colorado, increasing home values, the company’s reputation, and the quality of employees.

This is an S Corp and it can either be an Asset or Stock purchase. It is priced as an Asset Sale but can be adjusted to a Stock Sale. As an Asset Purchase, the business will be offered with the Seller keeping his cash, AR, and AP and transferring the business debt-free. This should qualify for an SBA bank loan for a qualified buyer.

Details:

The buyer will also step into a solid model from marketing to installation. The heavy lifting is already done. The company has a new and impressive website which is just one of many reasons this business will not change the day after the closing. They currently have a normal amount of work in progress, and a full backlog. 2022 should finish strong.

The company has 15 trustworthy, competent, and reliable employees who all go to the office during regular business hours and three 2 person crews. Many of the employees and subs have worked for the company for many years. The Sellers believe all employees are loyal, love their jobs, and will all stay after the transition. The Seller bought his partner out in 2020 who signed a non-compete and is no longer in the business.

They have a great reputation for the quality of our work, dependability, accurate bidding, and for fair dealings. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) and NO legal battles. They have a workman’s comp MOD rate of .87 which is very low. This is a clear indication of how well run their business model is. In fact, the seller will offer “to off-set” against the sales price for any liabilities originating before the closing and indemnify their financials.

Growth Opportunities: He just bought a new and higher volume fabrication machine. The new buyer can also increase sales. Add a 2nd location.

Their location is leased with a 12,000 square foot building with a 7,000 square foot shop, 5,000 square foot office space, and a 9,000 square foot yard. The lease is 9,400/mo. There is a 3-year lease ending June 30, 2023. This gives the buyer the choice of negotiating a long lease now which the landlord will be open to or moving the business by mid next year.

I am available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s).

Thank you for your interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

He just bought a new and higher volume fabrication machine. The new buyer can also increase sales. Add a 2nd location.

Market Competition:

They offer custom-fit Granite, Marble, Limestone, Onyx, Travertine, Soapstone, Quartzite, Porcelain, and Quartz. They do Kitchens, Bathrooms, Fireplaces, BBQ and all kinds of Special Projects. They do mostly residential work but have a very high amount of referrals. They have a full pipeline currently.

Location Details:

Their location is leased with a 12,000 square foot building with a 7,000 square foot shop, 5,000 square foot office space, and a 9,000 square foot yard. The lease is 9,400/mo. There is a 3-year lease ending June 30, 2023. This gives the buyer the choice of negotiating a long lease now which the landlord will be open to or moving the business by mid next year.

Support & Training

He will consider staying on as a salesperson with a heavy emphasis on commission-based compensation and will also consider keeping some ownership for the right buyer(Keeping ownership is not a deal breaker).

Reason for Selling:

He doesn't enjoy working the business side of the business anymore.