Recession Resistant, Growing Remodel Company
For Sale in Auburn, WA
Financial & Assets Details
About the Business
Strong brand, strong lead relations, and a recession resistant business model make this re-build/remodel company an ideal business, which is poised for growth. After a year of growth the company was growing out of control and losing profit margin. The owner cleaned house in 2017 cutting employee count from 35 down to 8 crewmembers, and now has an all-star team set to make more profit with half the revenue!
Projects/jobs are provided to this company through insurance providers, remediation companies, and referrals. About 80% of the projects are residential, companies like ServPro, ServiceMaster, DKI, etc utilize this firm to complete the rebuilds after their remediation work. This is a recession resistant model! People will need rebuilds and renovations in good or bad times, and getting jobs from insurance providers and remediation companies as a preferred partner is a huge competitive advantage.
The owner has built and sold one business under the same branding prior. That business is located in Chicago, IL. After 4 years in Seattle, seller has determined they are relocating to Austin, TX. This sale will include a non compete for WA State for buyers protection. Seller plans to offer continuing support with the working relations with current vendors, strategic partners, and to continue to support the Seattle and Chicago locations, and the buyer.
This year the business is trending to do $1.2M in sales, and net 25% for a seller discretionary income of $250k+.
Growth & Expansion
-Continue focus on quality personnel and monitor profit margins
-Run multiple teams to keep up with demand
-Utilize owners relations with remediation companies and insurance providers
Seller financing available for qualified buyers, terms to be negotiated based on buyer experience and financials.
“Construction should continue to increase at a moderate rate. Economy is stronger, real estate values are increasing, and confidence is growing. But the days of rapid, "hockey-stick" type growth and the ease of obtaining financing are probably gone. Banks and investors are the wiser for having gone through the meltdown of 2007 - 2008 and won't likely let that happen again.
The trend is fascinating because in the near future the US will revamp its infrastructure, including affordable housing. This hasn't been done since the Eisenhower years in the 1950's; it's past overdue and it will bring one of the largest contributions to the GDP. Many established construction companies will be sold by the baby boomers to the millennials. In addition, six of the 10 fastest growing industries among small businesses are tied to construction – including contractors, real estate agents and architects.
"With 2016 in the rearview mirror, construction professionals are turning their attention to the year ahead. While construction spending failed to meet analyst expectations last year, economists predict 5% growth in the value of starts in 2017, according to Dodge Data & Analytics. “ - 2017 Business Reference Guide
Support & Training
4 weeks included
Reason for Selling: