Update:  Two changes have occurred.  1) For several permanent reasons, their profit margin has increased significantly in 2019.  I valued this based on their 2018 properly adjusted earnings which were 514K.  Their trailing 12 months earnings are $623K through July 31st and most importantly most of that has come from 2019 and they are seeing record orders currently.  They now expect 2019’s earnings to finish above 650K.   This would cause an increase in price of close to $200K or more.  2) Their landlord is going to raise their lease rate to a current market rate when it expires in 2020.  The amount that they are currently paying is below market.  The company leases 3 of the 5 warehouse units in the same building.  The Sellers can easily consolidate the 3rd warehouse storage into the first 2.  This would result in an increase of 60K per year in rent.  In short, their earnings are up 100K and they now know their rent will rise by 60K next year.  We have decided to leave the price the same.  The next change will most likely be up sometime in the fall as they expect a very big finish to the year.

(This company is currently under an LOI which allows us to continue to market but we can’t accept any other offers until the LOI expires)

This is a 21 year old company that sells windows, pre-hung doors, millwork, and hardware.  They have a door and window assembly shop.  The sales team is a very experienced group helps with planning and design from blueprint to the order process.  The customer base is 30% light commercial and 70% custom residential remodeling and building.

The earnings for the trailing 12 months through July 31st were 623K from revenues of 8.4M.  2018 were 514K on revenues of 8.2M.  This company is being offered at less than 2X their trailing 12 month earnings and only 2.28 times their 2018 earnings.

The company’s revenues come from long term customers that pay in a timely manner.  They have approximately 80% in recurring revenue from long term customers.  They also have a full pipeline of signed work.  You must see the video interview in the data room above to fully understand how good this opportunity is.  

The sales price is 1,175,000 plus a negotiated value for their inventory which is currently estimated to be around 90K.  The sales price includes their FF & E including a lot of equipment  

The two active owners will assist with the transition and training.

Location:  Denver, CO