Specifications. RE: Commercial Concrete Repair & Maintenance. Business Overview

Transcription

1 Business Overview RE: Cmmercial Cncrete Repair & Maintenance Specificatins Price $510,000 Prfit Margin 23% Equipment $150,000 Lease Lease: $2,000/mnth ($24,000/year) Building: 4,000 sq. ft. with parking fr trucks & equipment; rughly 1,000 sq. ft. is heated ffice area Revenue $778,207 Multiplier 2.90 Dwn Payment 10% Reasn fr Sale Retirement Cash Flw $178,364 Valuatin $517,255 Lcatin Omaha, Nebraska Emplyees 6 FT frm March Nvember, 1 FT freman (repairs machinery during winter)

2 SUMMARY OF THE BUSINESS This seasnal business grssing nearly $800,000 in sales during 9 mnths each year basts a 90% recurrence in cmmercial clients. In peratin since 1988, this cmpany specializes in flat wrk, repairing curbs, driveways, sidewalks and parking lts. Jbs range frm $5,000 t $100,000 in billing, with 7 wrkers able t cmplete 1 t 5 jbs per week. The seasn typically lasts frm March thrugh Nvember, with wrkers n jb sites frm 7am t 3:30pm with ccasinal vertime as needed. Lcated in a 4,000 sq. ft. building that is able t huse all equipment and vehicles, and is leased at $2,000 per mnth. The ffice area is heated and cvers 1,000 sq. ft. While the current wner des ccasinally help ut n jb sites, mst ften he is in the ffice making bids and handling billing. Included in the purchase is $150,000 wrth f equipment and vehicles. Assets include 5 trucks, 4 trailers, pwer buggies, saws, drills and mre. The current wner is lking t retire but will prvide up t 90 days f transitin and supprt. Grwth abunds in taking mre bids, as the current wner has had t turn away jbs due t an inability t accmmdate all the requests cming in. Simply hire mre seasnal wrkers t handle the increase in demand, and explre ding new cnstructin and mre residential jbs. Priced at $510,000, a 10% dwn payment f $51,000 wuld return a prfit f $94,491 after debts the first year. Business Highlights Year Established: 1988 Clientele: 20 recurring cmmercial clients (90% f business) less than 10% are residential; jbs range frm $5k t $100k; wrks 1 t 5 jbs per week Building: 4,000 sq. ft. with parking fr trucks & equipment; rughly 1,000 sq. ft. is heated ffice area Lease: $2,000/mnth ($24,000/year) Emplyees: 6 FT frm March Nvember, 1 FT freman (repairs machinery during winter) Grwth Opprtunities: mre bids, hire additinal emplyees t take wrk currently turned away, new cnstructin, mre residential jbs Current Owner s Respnsibilities: bidding, billing, sme site wrk Financial Overview Grss Sales 2016: $778, : $976, : $876,085 Owner Prfit/Cash Flw 2016: $178, : $254, : $185,060

3 Assets Included in Purchase Assets Included in Purchase: $150,000 Equipment: 4 trailers, 2 pwer buggies, 2 plate cmpactrs, 2 skid laders, air cmpressr, generatr, 7 saws (cncrete and general) & multiple drills Vehicles: 1995 GMC Tpkick, 1998 GMC Sierra, 2011 Chevy Silverad, 1995 Chevy C3500, 2002 Frd F350 Intangible Assets: lyal clientele *amunts may vary

4 Recasted Cash Flw Analysis Descriptin f Financial Statement Tax Return Tax Return Tax Return Tax Return Ntes GROSS SALES $778,207 $976,910 $876,085 $664,873 % Change Over Prev. Year % % % Net Incme Shwn n Financial Statement $80,858 $158,116 $110,688 $35,461 ADDBACKS Cmpensatin t Owner $54,000 $72,155 $56,400 $58,900 Other unrelated Salaries $18,400 $23,355 $18,000 $17,500 Spuse 11% Tax n ttal W2 Salaries $7,964 $10,506 $8,184 $8,404 Depreciatin $15,681 $1,424 $1,453 $2,294 Nn-cash item Meals & Entertainment $0 $0 $1,130 $0 Meals unrelated t business Retirement Plan $6,587 $0 $0 $0 Nn-nward ging expense Rent Adjustment $-10,795 $-8,593 $-10,795 $-10,795 Onging rent f $24,000/years ($2,000/m) Health Insurance $13,285 $0 $0 $0 Sale f Assets $-7,616 $0 $0 $0 One time incme TOTAL ADDBACKS $97,506 $98,847 $74,372 $76,303 Seller's Cash Flw = Ttal Addbacks + Net Incme $178,364 $256,963 $185,060 $111,764 Prfit Margin % % % % 2015 was best year yet due t very little snw, allwing them t get mre jbs dne 2013 represents a year with heavy snw 2014 and 2016 are typical years, with bth prducing ver a 20% prfit margin Services Flat wrk all cncrete wrk n a hrizntal plane Cncrete is precisely mixed with the right aggregates and delivered in a timely manner t the jbsite fr prper curing Includes crack repair, chipping repair, settling issues and subgrade crrectins fr: Curb repair Driveways Sidewalks

5 Patis Parking lts Gutters Pl decks and stairs Equipment & Vehicles Thx 90-lb Paving Breaker Mrrisr Pwer Buggy Dupac Cncrete Grinder Steel Cncrete Frms Target Cncrete Saw Bech Hammer Drill Paving Breaker 180 Dynapac Pwer Flat Hnda Generatr STIHL Cut Off Saw Hnda Pwer Washer F8 Cncrete Saw Laser Level Generatr TPG 4300 HDX Makita Hammer Drill HR 400 Makita Hammer Drill HR 100 Sft Cut Saw Bbcat Breaker Sullivan Air Cmpressr STIHL 14 Cut Off Saw Bbcat S185 Skidlader Bbcat S205 Skidlader Plate Cmpactr STIHL 14 Cutquick Saw Labunty Breaker Steel Skill Saw Canyn Pwer Buggy 1995 GMC Tpkick 1998 GMC Sierra 2011 Chevy Silverad 1995 Chevy C Frd F350 Emplyees 1 FT freman - $24/hur (16 years f experience)

6 Guaranteed 40 hurs plus vertime during busy seasn During the ff seasn received $24/hur if he wrks repairing/maintaining equipment 6 FT seasnal wrkers including driver (5+ years f experience) 3 finishers are paid $20/hur 1 earns $15/hur 1 earns $18/hur 1 earns $22/hur All emplyees are given the ptin f a 3% Simple IRA match, paid hlidays and 1 weeks vacatin Bnuses are prvided at the end f the year ($1/hur) Grwth Opprtunities Bid mre jbs current wner has turned away jbs as he has been unable t cver the demand Hire mre seasnal emplyees t tackle mre jbs Wrk in new cnstructin Increase residential wrk Valuatin Details The Firm Business Brkerage used a Cash Flw Valuatin methdlgy t determine the Purchase Price f the business. The frmula used is as fllws: Cash Flw x Prescribed Multiple = Fair Market Value Cash Flw is the sum f business net incme plus any wner perks and any nn-nward ging expenses. A multiple is prescribed by a 20 questin, 100-pint parameter ranking system that is used t analyze the current business health. Each questin is based n a scale frm 1 t 5: 1 being lw, 2 belw average, 3 average, 4 abve average, 5 high. The average f the respnses sum is the business prescribed multiple. With this infrmatin, the cmputatin is as fllws: $178,364 x 2.9 = $517,255 The Fair Market Value fund abve psitins the business List Price at $510,000

7 T receive a full financial package and specific infrmatin regarding this business: 1. Cmplete the Qualified Buyer Dcuments (Nn-Disclsure Agreement and Buyer Questinnaire) n ur website r print, scan and return the attachments t inf@thefirmb2b.cm 2. Call The Firm Business Brkerage at t schedule an appintment r cnference call with a Brker. The Firm currently has ver 90 cash flwing businesses available. If yu find that this is nt a fit fr yu, please let us knw and we wuld be happy t prvide yu with ther pprtunities. The Firm makes n warranties r representatin in cnsideratin t the infrmatin prvided abve. All cmmunicatin regarding this business must ccur directly with The Firm Brkerage, LLC.