Profitable Remodeler: $137k Cash Flow, Project Manager Included For Sale

Description

Residential construction and remodeling business for sale in Western Massachusetts. The company focuses on kitchen and bathroom projects, cabinet refacing and custom stone work.

Financials

• Trailing 12-month revenue: more than $555,000
• Seller's Discretionary Earnings: more than $137,000
• Reported SDE margin: approximately 25%
• Equipment included: more than $16,000 in seller-estimated value

Buyers should verify the reported SDE and margins through tax returns, job-cost reports and current financial statements.

Services

• Kitchen remodeling
• Bathroom remodeling
• Cabinet refacing
• Custom stone work
• Additional residential renovation projects

Operations

A project manager and lead carpenter currently handle much of the day-to-day project work.

The existing structure allows the owner to spend more time on sales, customer relationships and business development.

Lead generation

The seller reports spending no money on advertising and receiving business primarily through referrals.

Growth

• Launch local digital advertising
• Improve website and search visibility
• Increase referral partnerships
• Add crews or project capacity
• Expand into nearby service areas

Due diligence

Buyers should verify historical financials, current backlog, signed contracts, customer deposits, equipment ownership, employee and subcontractor arrangements, job margins, supplier relationships, insurance and any warranty obligations before closing.

Massachusetts contractor registrations, permits and any trade-specific licensing requirements should also be reviewed to determine what must be maintained, transferred or obtained by the buyer.