Asset Sale Description
Business Features:
-Market Leader with Repeat Clientele
-Exclusive Products: Well-known, National Brand
-Steady Growth: not dependent on national construction market
-25-year-old company
-Well Staffed, Owners will stay 1 year
CONFIDENTIALITY:
The exact nature of business will only be divulged upon confidence that Buyer will honor confidentiality and is financially capable of such purchase. The Sellers are not interested in Earn-out or large Seller-Notes. SBA financing has been pre-approved by multiple lenders.
SALES/MARKETING:
Revenue has been steadily growing and has not been impacted by COVID. The company has a hold on the local market with exclusive distribution of one of the most recognizable brands in their industry. Revenue is mostly from direct sales of products with some installation work. The product they distribute does have service and warranty needs which is a barrier to entry for distant marketers. This is not a product that can be served by Amazon or web-based companies. Special licensing is not required for this product. Marketing for new clients is not necessary as the vast amount of revenue is derived from repeat clientele which includes residential contractors and some commercial contractors. The locals know this company well and new people or companies to the area quickly discover them. Revenues are well distributed where the largest client represents less than 5% of annual revenues. Much of the competition serves the territory from Denver – which is very hard to do with heavy traffic and road delays year-round but especially tough in the winter season. Locals still prefer to deal with someone that is also local with staff to support the service needs. There are opportunities to grow through expansion of territory.
STAFFING:
The Company is well staffed with many key employees covering all operational roles. They are looking for another installer to handle steady growth. One Owner oversees basic office management and accounting/HR. The other Owner performs Sales Management. While they have a strong sales force and office staff, both owners would need to be replaced to keep up with demand. The hope is the buyer would replace at least one of these owners or bring a team of people to replace both. Both owners are willing to stay up to a year to assure a smooth transition (at fair compensation).
EQUIPMENT:
The equipment and supplies (included in the sale price) will suffice for current sales volume at hand and some growth.
FACILITY:
Company leases 2500sf warehouse and office space (1100sf shop/showroom and 1400sf office/storage) from the Owners at fair market rent. They are not looking to sell the facility but would entertain offers. They will provide a lease to secure the facility for as long as desired by Buyer.
IDEAL BUYER:
The ideal buyer would have construction or architectural knowledge and general management skills. A sales background would be extremely helpful. Technical skill or experience is not necessary, but they should have great appreciation for employees that perform technical services. The greatest asset of this business is the employees and the culture to take care of customers and employees. Summit County is an expensive place to live. Out-of-town Buyers must investigate the local real estate market to understand the prices BEFORE looking into this business.
PURCHASE STRUCTURE:
Company is offered as an Asset-Sale with all equipment and supplies included in the price. Working capital is not included in sell price. Owners estimate that $200,000 for working capital would be adequate at start of business but Buyer will need to determine this.
CONTRACTS:
Contracts with Customers should be transferrable. Distribution Agreement and Credit Account with key manufacturer to be established with Buyer prior to closing. Many other vendor accounts are not exclusive and should have no problem continuing.
