16 Year Old Parking Lot Striping Co in Central Mountains of Colorado
2018 had earnings of 144,586 on revenues of 379,626. 2017’s earnings were 146,810 on revenues of 347,890.
This company paints lines on parking lots including Handicap Symbols, place signs in the ground, applies thermoplastic which are the thick lines that you see for most crosswalks/arrows in streets, and provide efficient design services for new parking lots at extra charge. This business is only open from mid-April to early November. He leaves Denver for Arizona in mid November and doesn’t return until April 1st every year. The owner is retiring because he is in his late 60’s and just broke his hip. He answers his own phone, works out in the field daily, and enjoys striping.
This business does not have a lot of competition. 70% of their work is negotiated and not bid against competition. Almost 100% repeat business. They provide services for cities, businesses, and for many property management companies.
The buyer will get approximately 57,200 in hard assets made up of equipment and vehicles.
The company has a great reputation with a long-standing and recurring customer base. They also have a lot of regular re-striping. Older lots need this every 3 years and newer lots every 4 to 5 years. If the lot is seal coated it can be longer.
This business has one W-2 longer term employee that is paid 32K for his 6 ½ months of service. The rest of the employees are hourly W-2 employees. This business has 2 crews that work 2 sites at a time typically. that needs an owner with the working capital to grow the business again. It has the employees, equipment, reputation, model, and customers. The mountains has a lot of seasonally available employees from early April to early November because that is the exact opposite time frame of the winter ski resorts. This is a big positive for this company. In addition, it is not dependent on the economy and there are more businesses and parking lots being built in his territory every year.
Location: Owner can live anywhere in Summit or Eagle County.
Sales price is 350K. This price is 2 1/4 times the earnings. Keep in mind that the owner of this company is only working 7 months a year. He will carry up to 10% of the sales price.