Well-Established Multifamily Niche Renovation-rehab Construction Services Company In Texas For Sale

The Company is a well-established semi-absentee owned, NON-NEW construction services business for EXISTING multi-family properties and assisted living facilities, serving primarily owners, property managers, construction managers, insurance companies and financiers. Services include interior upgrades and exterior renovation of the building envelope (including all construction services necessary to complete the work), roofing, and replacement for existing properties (multi-family rehab work). Demand is typically a) insurance-required, b) lender-required and/or c) investment-required. The Company does no new construction work unless it relates to ground-up rebuilding, typically for insurance claim purposes. The Company also has a growing presence in providing fire-water damage and storm restoration services. The Company sells the jobs, creates estimates for the work, creates and signs contracts, and supervises their subcontractors who perform the work to the completion of the job.
Services are primarily provided in Texas major metro markets (plus a few other states for some customers). Many clients are national and have requested that the business expand nation-wide to service their other locations.
Customers are primarily brand name companies who are large national property management companies or national financing companies who may manage the properties. In some cases, these same companies also directly or indirectly own these properties. However, the direct sales relationships for the jobs are maintained through a wide variety of contacts. These contacts include banks, bankers and financial institutions, commercial real estate companies (both privately and publicly held), multifamily apartment managers, construction managers, and homeowner associations. The Company is capable and, occasionally, provides services to commercial buildings.
The Company has excellent, experienced key management and employees in place who perform their jobs autonomously. The Company owner is able to regularly travel and, at times, for extended periods. The owner represents that the business has excellent matching books & records and can prove all sales & expenses.
The owner feels that there are many growth opportunities for an aggressive new owner, experienced in the construction services industry. The Company’s marketing strategy is multi-faceted and focuses on building and maintaining long term relationships with all of the decision makers who work on existing multi-family properties. The rehabilitation of multi-family properties can be initiated by banks, owners, property managers and construction managers. The Company does no advertising and relies on referrals and continued contact with existing customers and related contacts. There are significant, immediate expansion opportunities with existing national customers. Capacity can be significantly increased by adding sales and operations personnel.
BUSINESS HIGHLIGHTS:
1) ONE-STOP shop for customers, with great response time.
2) Quality of work.
3) Semi-absentee owner.
4) Key Management in Place.
5) Business not dependent on Owner's personal relationships.
6) Industry niche is specifically in the growth sector of multi-family properties.
7) Industry niche is specifically NOT in new construction (unless its total replacement such as due to fire damage).
8) Industry niche is specifically renovation and rehab of multi-family properties.
9) Demand is a) insurance-required, b) lender-required and/or c) investment-required.
a) Lender-required is because all properties are financed by financial institutions. The lender (eg bank) requires the owner to reserve and spend $$ on maintenance work such as paint, rehabs, upgrades, storm repairs. In fact, a percentage of rent is required to be saved in a reserve account and is allocated to pre-fund and pay for this work. Property rehabs are typically done on a 5 to 7 year frequency.
b) Insurance-required is due to fire, water, hail, freeze restoration work. Company has the ability to estimate, project management, for a fixed budget, and complete the work. Company philosophy is fixed price with NO change orders (excluding legitimate reasons, such as a hidden damage, or building code upgrades).
c) Investment-required property acquisition due to acquiring a new property that must be rehabbed to increase its investment grade and warrant higher rents. Company establishes scope (in one day) for all project acquisition and renovation work (except landscaping and foundation). Scope includes repairs to all necessary issues, deficiencies, and rehab improvements to improve the property to get better rents and ROI’s. The client then uses this estimate to negotiate a lower price from the seller during acquisition.
Purchase Price: The asking price for the assets of the business is NEGOTIABLE. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed by the individual principals of a prospective purchaser. THE SELLER PREFERS TO SELL FOR ALL CASH. The assets include Accounts Receivables valued at $5,266,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $250,000. The price will be adjusted for actual accounts receivable as of the sale date.
NOTE: THE SALE OF A BUSINESS IS CONFIDENTIAL AND DISCREET; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES OR OWNERS.
ALL STATEMENTS, FIGURES, AND VALUES ARE SUBJECT TO A PROSPECTIVE PURCHASER’S DUE DILIGENCE. THE INFORMATION FURNISHED BY M&A ADVISOR ABOUT THE BUSINESS AND ITS FINANCIALS HAS BEEN PREPARED BY OR IS BASED UPON REPRESENTATIONS AND INFORMATION SUPPLIED BY THE SELLER. ADVISOR HAS MADE NO INDEPENDENT INVESTIGATION OR VERIFICATION OF SAID INFORMATION.
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