For almost ten years this Company has provided residential kitchen, bathroom, basement, and other remodeling services for customers all over the Chicagoland Area. As a general contractor the Company also has the ability to provide home additions. During the recession the seller established a handyman business as a way to capture the repair work that was available and this business has become 35% of the company’s annual revenues this year up from 20% in 2012. The handyman side of the business provides cash flow and stability between remodeling jobs and has increased the company’s overall rate of growth.
The seller has maintained low operating expenses by working from his home. The company is scalable with its subcontractor employment model. Maintaining a close group of dependable contractors enables the company to provide quick response handyman service. Currently the company receives several hundred inbound calls each month for estimates. Today the business only needs one additional sales person/estimator to increase the rate of revenue growth as the demand for the Company’s services is increasing each year.
The construction industry is benefitting from a recovering housing market and increasing consumer discretionary spending on new construction, repair and remodeling of homes. Rising home prices are enabling owners to finance remodeling projects with the increasing equity in their homes once again as they did from 2002 to 2007. Home improvement spending in the US is project to grow from $180B this year to over $230B by 2020. This Company is a direct beneficiary of the broad based economic recovery.
The Company is ideally suited for acquisition by an owner operator who has or is able to acquire a general contractor license. A buyer can acquire the business with only $110k down payment as the business has been prequalified for SBA financing.
The seller is offering the business because he has decided to pursue another business opportunity that will allow him to better manage a recent family health issue. He is willing to remain with the business after the transaction for a transition period with the buyer and will sign a non-compete agreement as part of the sale.
Reason to sell
: Family Health Issue
: SBA Financing Available for Qualified Buyer