Specifications. RE: Architecture Firm with Professional Team. Business Overview. Established for over 30 years with a 25% profit margin!

Transcription

1 Business Overview RE: Architecture Firm with Prfessinal Team Established fr ver 30 years with a 25% prfit margin! Specificatins Price $1,450,000 Prfit Margin 25% Service Area Hustn & Dallas Revenue $1,668,433 Emplyees 2 Licensed Architects, 1 Office Manager, 3 Prject Managers, 2 Interns Reasn fr Sale Retirement Lcatin Hustn Dwn Payment 10% Accunt Receivable Backlg 2018: Prjects 18 Dllar Amunt $1,961,323 (after paying cnsultants) thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

2 SUMMARY OF THE BUSINESS Even with 2017 being a rugh year fr Hustn, this Municipal Architecture Firm still had its best year yet and is set t keep grwing. Shwing a 34% prfit margin due t the cmpany cutting internal csts t imprve the bttm line, sales have als increased by 20% since 2016, and the prfit margin increased by 10% frm In business fr 33 years, this firm is still strng and grwing every year. The wner is nt currently respnsible fr any billable hurs. The wner wrks 30 hurs per week in management nly. Lcated in Hustn and als serving Dallas, prjects are 80% K-12 and 10% municipal, with the remaining 10% cmprised f retail, healthcare, transit and mre. Prjects range in size frm 6 mnths in length t 2+ years, with staff cntinuusly wrking n 14 prjects each mnth. Beynd architectural design, this firm als ffers prject and cnstructin management, cst estimatin, interirs, specificatins and mre. Staff includes 2 Architects, 1 Office Manager, 3 Prject Managers and 2 Interns. This is a great chance fr an architectural firm t add a K-12 arm, r t expand int the Hustn and Dallas markets. Priced at $1,450,000 with 6-figure prfits, a buyer culd see a great first year's cash flw! Seller earnut is based n perfrmance. Business Highlights Years in Business: 33 Lcatin: Hustn Service Area: Hustn & Dallas Prjects: 80% K-12 / 10% Municipal / 10% Other 14 prjects/mnth Services: Architectural design, 3D imaging, prject management, cst estimates, cnstructin management, interirs, specificatins and mre Lease: $2,900/mnth in ffice space Reasn fr Selling: Retirement Emplyees: 2 Licensed Architects, 1 Office Manager, 3 Prject Managers, 2 Interns Seller Training Perid: 2-3 years Grwth Opprtunities: $1B wrth f Texas schl prjects cming up. Task rder cntracts. Current Owner s Respnsibilities: Architect thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

3 Financial Highlights List Price: $1,450,000 Grss Sales: $1,668, $1,335,528 Cash Flw: $422,150* $314,478 *Cash flw reflects retaining the wner fr ne year r replacing with anther principle at $150,000 per year. YOY Grwth: 20% increase in sales since 2006 Prfit Margin: 25% thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

4 Cash Flw Analysis Descriptin f Financial Statement P&L Statement Jan-May Tax Return Tax Return Ntes GROSS SALES $861,001 $1,668,433 $1,335,528 Annualized $2,066,402 Net Incme Shwn n Financial Statement $134,411 $308,812 $3,120 ADDBACKS Cmpensatin t Owner $76,250 $160,000 $134,700 11% Tax n ttal W2 Salaries $8,388 $32,780 $14,817 Depreciatin $0 $2,370 $11,650 Nn-cash item Cntributins/Dnatins $2,000 $34,312 $1,945 Nn-nward ging expense Meals & Entertainment $6,022 $6,512 $3,044 Persnal expenses run thrugh the business Persnal Aut $17,175 $14,539 $20,400 $1,700/m in lease payments Health Insurance $1,250 $2,999 $3,000 $250/m fr wner's premiums Travel $5,124 $8,326 $4,867 40% persnal Cell Phne $625 $1,500 $1,500 2 lines at $125/m Persnal Expenses $0 $0 $76,620 Nn-nward ging expense Credit Cards $0 $0 $38,815 One-time, nn-nward ging expense Owner Salary $-62,500 $-150,000 $0 Salary t keep wner fr 1 year r replace with new principle TOTAL ADDBACKS $54,334 $113,338 $311,358 Seller's Cash Flw = Ttal Addbacks + Net Incme $188,745 $422,150 $314,478 Annualized $188,745 Prfit Margin % % % Sales have jumped by ver 90% ver a 2-year perid Between 2015 and 2016, the seller made internal changes t imprve the firm s prfitability Office space was cut t reduce rent and a partner was remved ***2017 cash flw reflects retaining the wner fr ne year r replacing with anther principle at $150,000 per year. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

5 Services Architectural Design Cnstructin Dcuments Prgramming Interirs Specificatins 3D Imaging BIM Technlgy Virtual Turs Graphics Prject Management Cst Estimating and Cntrl Cnstructin Management Bnd / Pre-Bnd Assistance Facility Assessments Master Planning Prgram Management Ed Specs / Standards Cde Analysis Clients & Prjects Cncentratin Duratin 80% K-12 & Higher Educatin 10% Municipal 10% Other Healthcare, retail/cmmercial, religius/residential, transit/aviatin 14 prjects in prcess during a 1-mnth perid Range frm 6 mnths t 2+years Texas laws regarding public wrk: Architects cannt be chsen based n fee "Select n qualificatin" Fees are remved frm the bidding prcess Fees Fr K-12 wrk 6% t 7% f budget Fr Municipal wrk - 7.5% t0 8% f budget Emplyees 2 Architects Handle mst QA needs thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

6 Analyze cnstructability and reviews plans One has been with the firm fr 5 years 1 Office Manager Handles all administrative duties and schedules Prject assistant 4 Prject Managers 2 Interns Prductin prcess Nt yet licensed architects, but still billable Have been with the firm fr between 6 mnths and 4 years Prject Hierarchy 1. Seller takes the lead n a prject and ultimately versees the prcess as a whle 2. A Prject Manager is assigned t rchestrate and takes ver the prject frm the seller 3. The Prject Manager frms a team that cnsists f an Intern and help frm the Prject Assistant Grwth Opprtunities $1B f upcming K-12 & higher educatin wrk cming Plenty f wrk n which t bid Task rder cntracts Nt much f this is currently being dne by the firm but culd be a grwth pprtunity if desired thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

7 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. Fr this business, a 2017 Cash Flw was used with a prescribed multiple is 3.3. With this infrmatin, the cmputatin is as fllws: $422,150 x 3.3 = $1,459,095 The Fair Market Value fund abve psitins the business List Price at $1,450,000. Funding Example Purchase Price: $1,450,000 10%Buyer Dwn Payment: $145,000 45%Bank Lan: $655,000 Seller Earn Out: $650,000 Bank Lan 8-year term at a rate f 6% equals a mnthly lan payment f $13,339. Seller earn ut is perfrmance-based. Please nte that the decisin f whether t extend a lan n any sale belngs t the bank, and this dcument des nt guarantee specific terms r verify that financing is available. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

8 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. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f