Seller's Contact Information
- RE: Cash Flow Strong Residential Home Builder
- Contact: Karin Neumann
Quick Facts
Asking Price: | $3,170,000 | |
Annual Revenue: | $2,600,000 | |
Net Profit: | Not Disclosed | |
Cash Flow: | $1,200,000 | |
Total Debt: | Not Disclosed | |
FF&E: | 280,000 | |
Real Estate: | Not Disclosed | |
Year Established: | 20 | |
Employees: | 18 | |
BBN Listing #: | 69526267 | |
Broker Reference #: | 1492-2105 |
Business Overview:
This well-known Residential Home Builder is located in Western Pennsylvania. The firm enjoys significant operating margins and documented profitability with many successful single- and multi-family housing developments completed and under construction. The current inventory of developed building sites allows for over 2 years of home construction and sales at the current pace.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 2.5 x EBITDA (2022). A full valuation report is included and there is $3,100,000 in Net Working Capital plus another $280,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $450,000 benefit in after-acquisition-debt cash flow in Year #1 – over 70% return on equity investment.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a short-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
(ALL DATA BASED ON SIGNED TAX RETURNS)
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Property Features and Assets:
This business currently operates from its owned 7,500 square feet headquarters and showroom, with an additional 9,500 square feet of storage space.
Market Competition and Expansion:
The company enjoys a competitive advantage by combining the efficiency of a production builder while allowing the homebuyer significant customization options. The company purchases developable parcels, designs and manages the development of each property as well as the construction process, using long-term contractor “trades” who are accustomed to the standards and expectations of a high-end product. It is projected that a new owner will obtain additional growth by hiring an additional home designer and project manager at a total cost of about $175,000.
Reason for Selling:
Retirement (consulting available)
Additional Details:
- The property is Leased.
- The owner is willing to train/assist the new owner.
- This is not homebased business opportunity.
- This is not a franchise resale opportunity
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