4 26 21Update:  He has bids out for 665K in work that he believes he will get starting in July.  He knows his workers will come back when the work starts.  The July job will be between 125K and 200K and will be funded by the City of Colorado Springs(Not grant money).  The historical society grant funding which is typically 4 times a year will only have one grant round this year in August.  His 540K job will be part of that round of funding but he will not get all of it in that one round.  Half of that job will probably carry into 2022.   He expects to pick up other jobs and thinks there is a chance to a 500K year still but knows that he won’t know for sure until early September.   We will reach out in September when we have better visibility to what 2021 and 2022 look like.  We understand that he can’t get what he wants in the current environment until he has signed contracts exceeding an average of 500K in 2021 with good visibility into 2022.  Thanks for your patience. Jeff

The 2020 revenues were 563K and the normally adjusted earnings were 209K.  The earnings further adjusted for taking 10 weeks off a year(I only adjusted for 10 instead of the 18 he took off to be conservative in this adjustment based on the assumption that the buyer will want 2 months off during the winter) would have been 249K.  The Sales Price is 400K plus an earn out which will be revenue based to give him a chance to get to 550K total if the company shows growth after the closing.  The sales guaranteed portion of the sales price is less than 2X the earnings before the 10 week adjustment and only 1.65 times the earnings after that adjustment.  He believes he will get starting July 1st.  He already knows his workers will come back.   Call me to discuss anytime. 

13 Year old Historic Restoration Masonry Repair Company

All over Colorado in Historic Towns working on Historic Buildings

You must watch the video interview in the data room link above in blue to fully appreciate this opportunity.  The owner just turned 70 and started voluntarily slowing down 5 years ago by starting to take off 16 to 20 weeks a year to spend 1 1/4 months in Alaska and more than 3 months in Mexico each year.  This has had a big impact on the revenues and earnings but even more relevant is that he gives his employees 16 plus weeks off a year now also.  Essentially, his company shuts down for 4 to 5 months every year since 2015.  

He states in the video interview in the blue link for the data room above that he is being offered enough jobs to work year round, that his employees would prefer to work for this company all year, and that if a new owner wants to work harder than he currently is that they can return the company to the 1M plus in revenues he was doing just 3 years ago.  He has been turning down work and has opted out of accepting the larger jobs he was offered over the last 3 years.   He estimates that he has turned down over 3M in work over just the last year including a very large multiyear job.  His last full time year was 2017 when they did 1.2M in revenues and over 600K in earnings.  

The 2020 earnings were 208K on 563K in revenue.  The price of the business is less than 2 times the current earnings at 400K plus an earn out.  The sales price is actually less than 1 times what the business was earning 3 years ago before he voluntarily basically closes the company for 3 to 5 months a year.  

The owner has chosen to pursue only historical restoration and refers out the calls to do regular masonry jobs and new builds.  He knows the source of funding for historical jobs is through grants sources from Gambling taxes, etc which will probably be reduced temporarily starting later this year as the impact of COVID 19 takes effect.  He claims the new owner can take on the regular masonry work that is offered to him returning to the revenues and earnings the company did just 3 years ago.   This is a unique opportunity because of the amount of work and size of work that the seller turns down.  Keep in mind that this company does specialty work with a high profit margin of 22% or higher depending on the year. 

This company is well established with a great reputation and obtains the majority of their work from organizations which pay on time, and receive their money from Grants, the Lottery, Gaming taxes, etc.  He is offered other work every week which he will probably have to do more of in 2021 with the grants expected to be smaller this year because of COVID.  They have mostly recurring revenues.  He has chosen to keep the business around 525K in revenues by design over the last 3 years.  A new owner can easily grow this business many ways including just saying yes to more work, doing work in Denver which he has refused in the past, and by doing other types of masonry work.   

This business will be easy to grow by saying yes to more work, advertising their reputation through Google, etc on the internet through restoring their website or a new website, by hiring more employees, doing work in Denver Metro, and by doing regular masonry work including new construction. He has created a solid base for future sales and growth.  The hard work has already been done.  

Location:  The owner travels to job sites and works out of his home office in a small town in the middle of Colorado.  This business can be located anywhere in Colorado.  The owner just needs a 40’ by 40’ storage facility to stage out of somewhere near the middle of Colorado with potentially a 2nd one in Denver.  The company owns 3 vehicles worth 33K and another 34K in equipment which is included in the sale.  2 personal vehicles will be excluded.     

The Sales Price is 400K plus an earn out which will be revenue based to give him a chance to get to 550K total if the company shows growth after the closing.   The sale includes all assets.  No construction experience is necessary but is preferred.  He will train you and stay and help for up to 6 months post-closing.  We believe the most likely closing date will be year end or early 2022 for the following reasons:  He has started building his 2021 work in progress(“Pipeline”) and the workers will return when the work starts again which will probably be July.  He has already started biding jobs for Summer and Fall.  We understand that buyers will be more comfortable seeing the work in progress with a starting date so we will keep everyone who is interested up to date on how 2021 looks in real time.  He will be available for meetings again in mid to late June again.  Bottom line is that I will email everyone when there is contracted work in the pipeline with a starting date for his masons to get back to work.