Highest-rated Room Addition Contractor

Not Disclosed, CA
Orange County

Orange County

Asking Price: Annual Revenue:
$1,650,000 $3,911,040

Services: Home Improvement, Repair, Painting

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RE: Highest-rated Room Addition Contractor Broker: Gregg Tobin
License #: DRE 01365233

Quick Facts

Asking Price: $1,650,000
Annual Revenue: $3,911,040
Net Profit: Not Disclosed
Cash Flow: $515,815
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2004
Employees: 16
BBN Listing #: 478420804
Broker Reference #: #426

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Business Overview:

Summary Description

The Company is a licensed and insured, residential room additions company that holds 60% of the market share in a niche of the residential segment. Established in 2004 the company has generated over $42 million in aggregate sales since inception. Approximately 90% of the jobs are in Orange County and 10% are in the Inland Empire. There are two full time and one part time activThe Sellers are motivated since one of the partners is at the retirement age and the business is priced to sell. e owners in the business. However, it can be and has been, managed by one owner with a high-level manager or sales representative.

Core competitive differentiators
• In-house project management and workforce, eliminates the need for architects and subcontractors.
• Proprietary, customized software for proposals, customer and project data and automates marketing tasks.
• Extensive and targeted database of 120,000 homes as potential customers.
• 15 years of 95%+ customer satisfaction acts as a continuous source of new business.
• Long-term relationships with key personnel in various municipal entities based on quality of field workmanship results in better than average approvals and smooth turnaround time.
• Over 50% of projects are performed in home models previously completed. This results in a manufacturing mindset of reportingly significant operational efficiencies.
• Processes and procedures in place are similar to those of a large corporation.
• The niche projects typically cost less per square foot then the value of the home.

The business is positioned well as a “bolt-on” acquisition for an existing business of a similar trade like windows, doors, or architecture. It is also a strong opportunity for an independent contractor looking for a established platform—as it has the processes and personnel in place for rapid expansion.

In 2018 sales were $3.9 million up from $3.55 million the year prior. Adjusted EBITDA in 2018 was $515,815. Sales for the six-month ended June 30, 2019 were $2,014,150 up from the same period in 2018. 2019 YTD, business is very strong and set to match/exceed 2018. (The work backlog currently extends thru February 2020

Business Line Expansion – the company recently expanded bidding/building with larger residential projects. Given that these new offerings are often 100k-200k per project, significant volume growth is likely in 2020. (Company already has in-house project management capabilities to meet any growth demands.)”

Investment: The “asking price” for the business is $1,650,000. Interested parties will be required to sign the NDA and provide a description of the source of funds available for acquisition. The business has been pre-approved by the SBA with 10% cash down. Buyers will need to qualify based on financial strength, credit, and business experience in a related industry.

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Property Features and Assets:

The company is based in Orange County, operates from a 1,600 square feet space and rent is only $2,227 per month. The facility is centrally located and easily accessible to the customer base.

Market Competition and Expansion:

The sellers recognize that the current platform has room for growth by expanding upon the geographic area and diversifying the services and product lines. In addition, utilizing digital marketing strategies will improve access to potential customers and further reduce customer acquisition cost.

Reason for Selling:

Retirement and relocation of partners.

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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