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Denver Home Remodeling Company, Many Ways to Grow, Great Location

ConstructionFor Sale in CO

Listing ID: 33227 | Broker Listing ID: BLP791026

Financial & Assets Details

$7,900,000
$465,000
$100,000
$90,000
$2,100,000
12000+/-

About the Business

1995
10
Yes

Business Description

Denver Metro Residential Window, Siding, Doors, and Roofing Remodeling Co

Residential replacement windows(43% of revenues), siding, entry doors, and roof/gutter company. The trailing 12 months has 7.9M in revenue, 465K earnings, and has a sales price of 1.275M. They are a remodeling company that has their normal pipeline of signed work. The owner is retiring. The company replaces windows/siding with vinyl, steel, or fiber cement, soffit and fascia, and gutters and is a roofing contractor able to install a new roof.

BUT, this is a sales and marketing company much more than it is a construction company. The owner is retirement age and manages the sales manager and other managers but let them run the business. He doesn’t do any sales himself. The company had a total sales and marketing cost of over 2M dollars over the last 12 months which is almost 28% of revenues. They still use a call room, print ads, radio, a contest, trade shows, and a non-celebrity endorser; which compared to a more modern approach is wasting a lot of money.

The main opportunity is updating their marketing to be more efficient and to be able to grow the company less expensively. Their properly adjusted earnings are currently only 5% of the revenues when they should be closer to 12% to 15% or more. The other opportunity is to pay more attention to their online reviews. They have above average Google and Angi ratings which can be improved. Surprisingly, he said that he didn’t know that only the customer can take down bad reviews. The new owner should be able to dramatically improve their online presence, ratings, and traffic, also increasing their social media marketing. The new owner will probably want to add a showroom for customers and to film marketing videos.

Another opportunity is to add products like energy efficient lighting, solar, or security systems. The federal government just passed a 30% credit for most energy efficient home improvements. This is very valuable because it is a credit and not just a deduction. Keep in mind that the demand is always there because of the nonstop growth in and around Denver combined with the poor quality of windows over the last 30 years of new construction. Plus, Colorado has extreme highs and lows and hail which is very hard on windows, doors, and roofs.

The sales price is 1,275,000 plus a negotiated value for their inventory which is currently estimated to be around 90K. The sales price includes 100K in FF & E that includes 4 vehicles, office furniture and equipment, tools, etc.

The owner will assist with the transition and training.

Location: North Denver Metro

Details:

The company sells windows and doors that are sometimes customized to their customer’s needs and are energy star rated. The windows and doors are warranted by the manufacturer. Their major suppliers are major manufactures with national name recognition.

The company is currently owned by an owner who oversees management and doesn’t do any bidding or sales himself. There are currently over 10 excellent and reliable employees many of whom have been with the company for longer than 5 years. There are also independent contractor salespeople, and 2 window installing independent crews, 1 siding crew, 1 individual for doors and 1 roofing crew, who are all paid either by window/door or per 100 square feet of siding or roofing. The employees and “subs” are very skilled in their respective positions. The owner currently works 30 to 35 hours a week and will be staying in Denver, in great health, and will help in transition. He will sign a non-compete.

The company is an “S Corp” with a great reputation for excellent customer service. They have an excellent worker’s safety history as proven by their .84 “MOD” rate for workman’s comp insurance and has never had a legal issue. The seller will offer the standard reps and warranties at closing.

Their trailing 12 months marketing expenses are 1,242,286 for “sales expense summary” which is mostly commissions for salespeople, 585K for media marketing, and 297K for non-media marketing. This totals 2.12M for marketing costs. They do 3 or 4 trade shows a year and he admits only the spring “home show” at the convention center in Denver is profitable.

The company has a great location, and he owns the property which they would like to sell with the business. The details are in the sales package.

The broker is 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

The main opportunity is updating their marketing to be more efficient and to be able to grow the company less expensively. Their properly adjusted earnings are currently only 5% of the revenues when they should be closer to 12% to 15% or more. The other opportunity is to pay more attention to their online reviews. They are a top 500 company in the country according to Qualified Remodeler Magazine as well as top 200 Home Improvement Professional company in Qualified Remodeler Magazine. They are 4.2 stars with Google and 4.3 stars with Angi. Surprisingly, he said that he didn’t know that only the customer can take down bad reviews. The new owner should be able to dramatically improve their online presence, ratings, and traffic, also increasing their social media marketing. The new owner will probably want to add a showroom for customers and to film marketing videos.

Another opportunity is to add products like energy efficient lighting, solar, or security systems. The federal government just passed a 30% credit for most energy efficient home improvements. This is very valuable because it is a credit and not just a deduction. Keep in mind that the demand is always there because of the nonstop growth in and around Denver combined with the poor quality of windows over the last 30 years of new construction. Plus, Colorado has extreme highs and lows and hail which is very hard on windows, doors, and roofs.

Location Details:

The company has a great location in North Denver. He and his old partner own the property which they would like to sell with the business. The lot is 1.359 acres with single story building that is 12,039 square feet. It was built in 1977, is fee simple, and is not located in a flood zone. ease in a large commercial building with plenty of parking. It is zoned I-2 for industrial use. The owners have ordered an appraisal with results expected mid-December. They have two broker opinions of 2.1M.

Support & Training

Will stay as long as needed

Reason for Selling:

Retiring

Listing ID: 33227

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