Company that provides Cooling Systems for your Home-Denver, CO
They are a light construction company with jobs that typically take less than a full day to complete with payment the same day meaning they have zero bad debt. 2018 earnings were 346K from 866K in revenues. There are a lot of special things about this company: The business has maintained a 34% profit margin which is very high for a construction company, they don’t have any outgoing sales, they typically turn away work for several months during the busy season, it doesn’t require a license, they can give accurate estimates over the phone, they start and finish their work and get paid in one trip and therefore has no bad debt, has mostly seasonal work that just happens to coincide with the summer school year break, which makes it possible to find competent workers easily each summer. They are on good terms with previous employees, who return from year to year for work in the summer months. They are so seasonal that the current owner spends one month off each winter and only works partial weeks most of the winter which is a great thing for skiing etc. New employees are easy to train with the aid of slideshows and documentation, which illustrate all aspects for the work required to be accomplished correctly. Systems are in place to aid employees in all processes from the incoming phone call to completed job. The company earns a profit on both the product markup and the labor, and this business can be easily grown much larger very inexpensively to build equity.
Light Construction: Home One Day Remodel/Upgrade Company
In business for over 16 years
2018 earnings were 346K from 866K in revenues. The trailing 12 months earnings through August 31st were 271K from 782K in revenue which is down a little from 2018 because Colorado experienced an unusually cold June, “June-uary” as the news referred to it, and the weather has a large influence on sales in the summer months. They have a 34% net profit margin which is also extremely rare and valuable in light construction.
The owner is getting older and slowing down, has spent an increasing amount of time off over the last year including most of the Winter months, and as he is slowing down has decided it is best to put his business up for sale.
This company is well established with a great reputation 5 star Google Rating with 81 reviews, have earned Angie’s List Super Service Award many years in a row, and has an A+ BBB rating and have won their Gold Star Certificate Award many times along with Yelp awards, etc. they have many awards and many customer testimonials makes any marketing more effective.
They specialize in installing 2 types of products which improve the homeowners comfort at a low cost compared to the alternatives. They have also installed residential insulation which can also increase their sales year round which would increase earnings and made it possible to keep the employees on full time year-round. Also, information for insulation estimates are very easily obtained during their normal work since the customer’s trust was already gained. The owner will teach the new owners how to bid and install insulation if they would like to work year round and grow the business even more. They have also considered adding solar-tube lighting, and the new owner could add any number of products which could help grow the company and/or give them year-round work. This business would be easy to expand throughout the front range of Colorado with their reputation, website, and efficient model. This will create a solid base for future growth. The hard work has already been done.
The perfect time to buy this company is around January or earlier because it will give the current owner time to train the new owner, and will also give a buyer time to learn the business, improve the marketing, and bring on seasonal employees before the busy season starts. No construction experience is necessary, the current owner has all the tools necessary to train you.
Location: The business is located in a 2,000 square foot office / warehouse, close to downtown Denver, and the building is located literally in the center relative to the work sites. Their office/warehouse is also for sale. It has been updated and remodeled both on the inside and outside, custom to the company’s needs. The building is being offered for only 500K.
The price of the business is 695K which includes everything except the cost of inventory estimated to be around 60K. This is just over 2 1/2 times the trailing 12 months earnings and only 2 times the 2018 earnings which is a fair price for a non-seasonal business, but a great deal for this seasonal business. This has allowed the owner of this business to take around 4 months off and still earn the same amount as most do in a whole year. In other words, the owner works hard 8 months of the year and hardly works the other 4 months. This means that it is an extra appealing business for active skiers, snowbirds, or for a buyer that wants to work year-round by adding products like insulation, bath fans, ceiling fans, solar lights or other products that can be installed in the winter to increase the annual earnings.