Business For Sale

ADU (Alternative Dwelling Unit) Construction/Facto

San Jose, CA
Santa Clara County


Asking Price: Annual Revenue:
$5,000,000 $3,500,000

Services: Construction, Contractors


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RE: ADU (Alternative Dwelling Unit) Construction/Facto Broker: Rick Carlson
License #: 01820673

Quick Facts

Asking Price: $5,000,000
Annual Revenue: $3,500,000
Net Profit: Not Disclosed
Cash Flow: $500,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2005
Employees: 8
BBN Listing #: 439227574
Broker Reference #: 788 Build

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Business Overview:

The thought leader in the space is seeking to become a fully vertically integrated ADU manufacturing plant to capture margin efficiencies at all levels. Presently working with a non-profit that is working on a Purchase Order in the range of ~ 600 units at $170,000 per unit, the time is now to secure a supportive capital partner that can help the Company scale. $1-$5MM target check size(s), gradual milestone driven release is OK, willing to let go of majority stake for right partner also.

Solution:

We’ve approached the market with the philosophy that there should be a single resource that handles everything and uses prefab solutions to make the process more predictable, faster and cheaper. We have been working on this for the last 13 years and feel we have spent enough time working out the details on what people want, what works for within the cities rules and what prefab solutions are a good fit.

Why now:

Affordable housing is one of the most talked about topic in the state of California. Simply put, we don’t have enough and there are very few solutions out there that don’t require significant costs for infrastructure while getting the approval from the community. ADU’s are a rare solution to housing since they do not require any state funding, new infrastructure and homeowners build them on their own properties. The demand is growing and we are already considered to be the most knowledgeable resource for ADU’s in the state.

Business Model:

Our strategy is based on an in depth study of the market of the last 13 years working as an ADU builder. Standardized plans that are built using some form of prefab construction reduces design and construction time which in turn contains costs. On average we see that our solutions are 18%-28% lower than the conventional method of hiring an architect and then bidding out the project to several contractors. Also by engaging the client with a more affordable design solution we establish a relationship the ensures they will build with us. We currently maintain an active design backlog of 40-50 projects with 20-25 active builds going on at any given time. This is with no real marketing other than our google AdWords campaign which is limited to the local area and roughly $200/month. We have been on a growth pattern of over 100% annually for the last 3 years. We expect this to continue as we partner with organizations looking to provide finance solutions and cities willing to use our solutions as “pre-approved” designs to speed up the approval process.

NDA is required for further details.

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Property Features and Assets:

NDA is required for intro. package.

Market Competition and Expansion:

Competition: None as robust as this Company. Growth & Expansion: Massive.

Reason for Selling:

Capitalize to grow factory.

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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Disclaimer:

The information has been supplied by the Seller. BBN has not verified any of the information provided in this listing. Any agreement or decision by a buyer to pursue a transaction of this listing should be based on further investigation and due diligence. BBN expressly disclaims any and all liability resulting from the sale of this business. For full disclosure please read BBN's full Legal Disclaimer.


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