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Listed by:

Beacon

Extremely Profitable Eco Friendly Mold Remediation Business For Sale

Washtenaw County, Michigan, US
Asking Price:
$2,500,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$1,556,509
Cash Flow:
$684,473

Before they entered the mold remediation business, the current owners worked as general contractors in the Southeast of Michigan. After building up a sizable book of customers and developing a reputation for quality work, the owners were approached by a client who introduced them to the mold remediation business. At the time, there wasn’t a mold mediation business in the area, so the owners saw an opportunity and started their own business.

Mold remediation is the process of identifying and eliminating harmful mold growth. A single mold remediation project can take anywhere from 1-10 days. Sometimes, these projects fall within a homeowners insurance policy. Mold remediation requires certification, which allowed the owners to become the first-movers in what has become a lucrative business.

Mold remediation often involves the usage of harmful chemicals, like bleach, ammonium compounds, and other toxic disinfectants to treat the two main elements of mold: the toxins and the mold spore. The owners recognized that these chemicals could be harmful to themselves, their employees, and their customers, so they spent several months researching and testing alternatives. Eventually, they developed a slate of mold remediation products that were highly effective and most importantly, chemical-free. The business relies on dry ice blasting, which is the most advanced method of mold
removal. With years of expertise, the business' employees have a deep understanding of how to effectively employ chemical-free alternatives to remove mold.

By investing the time and money into chemical alternatives for mold remediation, the owners were able to further set themselves apart from other competitors. The owners were able to open an entirely new market of more health conscious customers, which completely changed the business. Repeat customers and referrals from homeowners, doctors, general contractors, and real estate agents have allowed the business to eclipse $1.5M in annual sales.

Because of their unique services offerings and reputation for high quality work, the business is able to charge a premium for their services. The margins on a mold remediation job are substantial and the owners consistently see ~30% margins on EBITDA.

After an almost 20 year run in the mold remediation, inspection, and air testing business, the owners are pursuing new business ventures and looking for the right buyer to take on their business. They’re in search of a buyer that understands the value of providing a chemical-free solution to the market.

Property Information

Real Estate:

Real Property Included

Location:

The business is headquartered in Washtenaw County and occupies a prominent location on the main street of the town.

Premises Details:

The business' operations do not require a large office space, so their current facilities have office space for the owners and office manager, storage for mold remediation equipment, and garages for company vehicles. The new owner could transition the business to home-based, provided they had access to a modest amount of storage. The business' location provides access to three large metropolitan service areas, in Southeast Michigan and Northern Ohio. The 2,500 square foot building is owned by the current owners, who would work with the new owner to structure a long-term lease, if needed. (Home Based)

Size in square feet:
2,500

Business Operation

Expansion Potential:

There are a number of opportunities to continue to grow the business. First, the new owner could continue to develop relationships with more doctors in the area, realtors, contractors (roofing, plumbing, basement, etc.), property management companies and facilities managers. Given that the business has no direct competitors in the space, there is ample opportunity to continue to educate other professionals on the benefits of utilizing chemical-free mold remediation services. Second, there are many untapped markets outside of the business' current service area. Opening up additional locations in Michigan or in the greater Midwest closer to the metro areas of Indianapolis or Chicago would allow the business to drastically expand its total addressable market. Given the business’ massive success, the new owner would have no issues entering new markets where there is no other provider who offers the expertise and services that this business provides.

Competition / Market:

Because the business has no direct competitors, there are very few threats that the business faces from a competitive standpoint. As with all service businesses, the tightening labor market presents two threats to the business. First, wage increases may reduce the profitability of the business if they are not counteracted by an increase in the price for mold remediation services. Second, if employees seek employment elsewhere, that would reduce the number of projects that the business can take on. The current owners have de-risked this element of their business to a great degree. First, they offer great benefits to their employees and have invested time and energy to ensure that they are happy with their jobs. Second, the business' chemical-free offerings are appealing to the workers, who understand that the services they provide lead to improved health in their customers. This element of the job is especially appealing and is a core reason why the business has been able to retain an experienced, professional staff of workers.

Reasons for selling:

Retirement

Employees:
9 FT
Years established:
13

Other Information

Support & training:

The current owners are willing to stay on for up to a year in order to teach the buyer about the science of mold remediation and introduce the buyer to key stakeholders in the business. It’s important to the current owners that the new owner understand and appreciate the health benefits that the business' services offer to customers, so they are willing to stay and provide hands-on training.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

10% of asking, with higher financing amounts available to qualified buyers.

Furniture / Fixtures value:
$250,000 - included in the asking price
Website:
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Home based:
This business can be run from home.
Relocatable:
This business can be relocated.

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