Busy 13 Yr Old Masonry Repair Co, Can be located anywhere in Colorado
13 Year old Masonry Repair Company
All over Colorado Including Historic Buildings in Historic Towns
The owner just turned 70 and started voluntarily slowing down 3 years ago by starting to take off 12 to 16 weeks a year. This has had a big impact on the revenues and earnings but even more relevant is that he gives his employees 12 weeks off a year now also. Essentially, his company shuts down for at least 3 months every year.
The current trailing 12 months earnings through June 30, 2020 were 206K on 481K in revenue. The price of the business is less than 2 times the current earnings of 206K at 410K plus a small 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 months a year.
He states that he is being offered enough jobs to work year round, that his employees would prefer to work 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 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 3 months 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 owner has chosen to pursue only historical restoration and refers out or turns down the calls to do regular masonry jobs and new builds. 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. Because of this, he is also asking for a 50K per year earn out if the business does over 700K in revenues for the first 3 years after the closing.
This company has mostly recurring revenues. He has chosen to keep the business around 475K 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, by doing other types of masonry work, advertising their reputation through Google, etc on the internet through restoring their website or a new website, by hiring more employees, 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 the Mountains which could be anywhere in CO. The owner being able to work from home is one of the reasons the profit margin is so high. 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 410K plus a small earn out which includes all assets. No construction experience is necessary but is preferred. He will train you and stay and help for up to 4 months post closing.