Title: All Year Round Revenue From Painting, Cabinetry and Floor Coating
Brokerage: Denver Business Brokers Intermediaries
Industry: Construction/Trades Location: Denver, Colorado
Asking Price: $790,000.00 Inventory/FFE: $69,000 (*Included in Price)
Gross Revenue: $2,060,408.00 | Cash Flow: $104,397.00 | EBITA: $239,242.00 | Real Estate Value: Leasehold only
Description: Make Money Day One By Owning A Painting, Floor Coating and Cabinetry Co.
The Potential: The business net cash flow has averaged 7% growth over the last 5 years. They have a customer base of over 2,000 clients. In 2015 the seller’s discretionary cash flow (SDCF) was $213,163. They project a gross profit of $660,726 for 2016. They have assets in excess of $69,000.
Growth: This company gets requests for more bids than it currently has the capacity to fulfill. A new owner could easily grow the company and increase profits by hiring more painting and flooring teams.
As the owner of the company, you will get:
1) A Reliable and Skilled Labor Force
The partners act as president and CEO. One of the partners is willing to stay on for six months as a paid employee to help transition the company to new owners. This should be enough time for the new owner to hire and train a manager or to take on the responsibility himself/herself. There are 10 full time W-2 employees. These employees include 6 highly trained specialty technicians on flooring. The other 4 are involved with sales, operations, administrative duties, and management. The company employs many more 1099 skilled laborers. In the summer, they have about 8-12 painting crews. Although they try to keep the crews busy all year long, they usually reduce their 1099 staffing by about 30% during the slower months.
The company outsources their human resourcing, payroll, workers comp & employee benefits programs to a professional employer organization, or PEO.
2) An Impeccable Professional Reputation
People in the construction industry and affiliated industries continue to hire and recommend this painting company. As a member of several professional organizations, the company’s solid reputation is one of its key assets. Customer service isn’t just a word; it is what the company does when something doesn’t go as planned. This company never leaves until the client is satisfied.
3) Continuing Revenue Stream from *Painting, Floor Coating & Cabinetry*
The owners see a tremendous potential for growth in the floor coating service. Concrete coating is a relatively new industry and it is growing at an astronomical rate. Licensing requirements in the industrial coatings industry along with the specialized training requirements make the professional floor coating services much less vulnerable to the DIY population. This is a chance to own a company who already has an established reputation, market share, and relationships in this field.
The owners invested considerable resources to become the go-to company for professional floor coatings throughout the Denver metro area, Boulder, Colorado Springs, and Larimer County. The business installs highly-rated and proprietary floor coating products. It has secured licensing and certification to install these products throughout much of Colorado. The license & certifications will transfer to the new owners. The growth opportunity in this industry must be emphasized. Floor coating services currently accounts for about 40% of the business revenue. They primarily work on garages, patios, hangars, retail spaces, and storage facilities. They project that the biggest growth opportunities will be in commercial areas.
They have positioned their painting services to cater to homeowners and commercial real estate owners who are more concerned about quality and service than price. Painting interior and exterior walls remains lucrative and accounts for about 50% of the business. While many painting companies operate seasonally, this company keeps painting crews working year-round. Offering painting services on interior spaces during the winter months increases revenue opportunities. It also keeps employee turnover lower. By retaining their top performing crews it saves considerable resources in recruiting, hiring, training, and testing new painting crews. As a result, their customers consistently get a great service.
Painting and flooring customers requested cabinets enough that the owners decided it would beneficial to add cabinetry as a service. The business owns the rights to sell a cabinet system that includes a fun, user-friendly software system. Using the software, customers see a computer rendition of how the cabinets will look in a space prior to making a commitment to buying them. It reduces the customer risk, which increases sales. The cabinetry service accounts for about 10% of current revenue.
4) A Strong Online Presence and Reputation
Stellar reviews on Yelp, with 5 star ratings only! They earned an A+ rating with the Better Business Bureau.
The company has about $69,000 in equipment and assets with Leasehold and option to renew.
The Background Story
This home finishing company started a residential painting and floor coating business. After several years building their painting brand, the owners saw tremendous opportunity in adding commercial painting & floor coating and cabinetry services as well. The diversity of services maximizes profits and minimizes marketing and branding costs by offering 3 complementary services all under one umbrella brand. Each service has a similar business structure and generates leads for the other two services. Homeowners and commercial real estate owners investing in the look, functionality, and durability of a space often commit to several projects at once.
Are You Ready to Buy and Earn Cash Flow Today? The current owners have built a solid business and brand from scratch. A skilled and motivated new owner would be able earn well over the 2 million dollar mark in revenue. This is a perfect opportunity for someone already in the painting or floor covering business to expand their revenue streams. It would also be perfect for someone with an entrepreneurial spirit who wants to skip over the hurdles start-up businesses face. If you want to learn more call TODAY!! Ask to speak to Jay Spencer, Business Broker. For more information call 303-290-7449 or email firstname.lastname@example.org.
*Disclaimer: Listing Information displayed is usually deemed reliable but is NOT guaranteed accurate by Denver Business Brokers Intermediaries. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.