15 Year Old Stone, Fabrication, and On-Site Installation Co
The 2021 revenues were 4.8M with 626K in earnings. 2020 was impacted by both Covid. 2019 had revenues of 3.9M with 830K in earnings. This company has seen long-term growth and expects that to continue with the only exception being 2020.
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 well-known buildings, public events centers, and work with several high-end custom home builders,
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.
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, 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 45 to 50-hour average workweek. He will 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.
A Sales Price of 1.9M plus inventory is only 3 times the earnings which is a great price for a company with 4.8M in revenues, a 13% profit margin with 626K in Earnings, 88% Recurring Revenues, 5 star Google Rating, 3 months of backlog, long-term steady growth, and 700K in assets. 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 a “Fun” business to own.
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.
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 have a normal amount of work in progress, and a full backlog and 2022 should be a great year.
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.
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 in Central. There is a 3-year lease ending June 30, 2023. The landlord would prefer a longer lease with the new owner.
Plus, Colorado is the best State in the country to own a business based on Denver’s consistent growth and the increasing wealth of its population.