Seller's Contact Information
- RE: High Cash Flowing Commercial Painting (& More) Co.
- Contact: Steve Kandt
Quick Facts
Asking Price: | $1,150,000 | |
Annual Revenue: | $2,000,000 | |
Net Profit: | Not Disclosed | |
Cash Flow: | $360,000 | |
Total Debt: | Not Disclosed | |
FF&E: | 400,000 | |
Real Estate: | Not Disclosed | |
Year Established: | 1992 | |
Employees: | 12 | |
BBN Listing #: | 286431216 | |
Broker Reference #: | SK1050622 |
Business Overview:
The founder-owner-seller of this highly successful 30-year-old commercial and industrial painting and coatings business is ready to retire after he transitions his company to only its second owner. The company has a coveted B to B business model incorporating a number of profit centers including interior and exterior painting, epoxy flooring, and painting of machines and light fixtures to name a few.
Located in a desirable suburb in SE Michigan, the business occupies an attractive, 5000 square foot late model building owned by the seller. The building has all the features of a successful commercial business including high ceilings in the shop area, overhead doors, metal racks, a locked cage area, and ample storage space. The real estate is available for a long-term lease under favorable terms or it can be purchased in a separate transaction.
Facing only a few true competitors in the company’s service area which includes four of Michigan’s most populous counties (Oakland, Wayne, Macomb, and Livingston), the company has access to 40% of Michigan’s total population. The combination of access to a huge customer base, lots of repeat business, solid referrals, and of course a strong reputation, the business does virtually no marketing. Demand for the company’s services is so strong that the May 1st project backlog already extends into 2023 which will obviously be a wonderful benefit for a new owner-operator both post-close and beyond.
The business employs approximately 10 to 15 full time, skilled, well-paid, non-union employees including three crew leaders including a small office staff. During surges in demand, the company augments its own work force with a tight network of tried and true independent contractors.
The seller contemplates an asset sale in which he retains cash and the minimal A/R, while retiring all liabilities. In addition to the goodwill of the business, the buyer will receive all fixed assets including a plethora of painting and coating equipment and rolling stock in excess of $400,000.
For the four year period (2018 – 2021), which of course includes 2020 the first year of Covid-19, impressive annual revenues still averaged nearly $2.0 million. SDE (seller’s discretionary earnings - the historical, normalized cash flow available to pay an owner-operator and service debt) averaged $360,000 annually over the same four year period. Through September 30, 2022 the company is on track to exceed 2 MM in 2022 revenues, and SDE is above $500,000 for the year.
The business is being offered for $1.15 million, a favorable 2.9x SDE. There is ample cash flow to easily cover debt service (both projected bank debt and a low six figure seller note for a qualified buyer) and a $100,000 ( ) salary for the new owner-operator.
For more information on this excellent, strong-performing, well priced, niche business opportunity, please contact Steve Kandt (steve@praxisbb.com).
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Property Features and Assets:
An attractive, 5,000 square foot late model building. High ceilings in the shop area, overhead doors among other amenities.
Reason for Selling:
Retirement
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not homebased business opportunity.
- This is not a franchise resale opportunity
Documents:
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