* Included in Asking Price
Making $145K/year working only 8 months out of the year the Sellers are only responsible for sales and scheduling. The business is made up of 25% Gutters and 75% Gutter Covers. Their Territory is from Pella, IA (45 miles east of Des Moines) to Grand Island, NE – servicing any and all counties on both sides of I80. There is a simple Sales Process in place, once you receive the Customer’s Inquiry – you send an email with a past homeowner’s reference in their neighborhood within 1 hour – then call 1-3 days later – within 1 week complete a go-see. There is a 75% close rate on first call by following this successful sale process.
The average invoice is $2,800 therefore working only 8 months out of the year provides a new Owner with only working on 3-4 jobs a week. The business has a long relationship with the sub-contractors who perform all the labor with their territory that guarantees their work for 1 year. There are currently over $1,000 customers in which the business is servicing. There is a large intangible asset in which is included with the purchase, the exclusive right to Dealership Network and the 1st Right of Refusal on several other neighboring territories.
The business has a competitive advantage of providing a Manufacturer’s Lifetime Warranty on the products as well as having another Franchisee in Seattle doing over $30MM in Sales/year!
The Seller is willing to stay on and train, no additional cost, for 3-4 months post-close. The Seller is also willing to finance 15% of the Purchase as well as provide a Buyer a discount of $123,820 off the Fair Market Value of the business due to his health.
Reason for Selling: Retirement & Seller’s Poor Health
Personnel: Long relationship with Sub-Contractors in every territory that guarantee their work for 1 year
Hours: Working 8 months out of the year – roughly completing only 3-4 jobs a week
Support to Buyer: Willing to train and transition for 3-4 months
Furniture/Fixtures/Equipment: $1,700 which includes display booths and tools
Intangible Assets: Exclusive Right to Dealership Network with a 1st Right of Refusal on several other neighboring territories. Won Angie’s List Super Source Award
Goodwill: Over 1,000 local customers
Service Area: Territory is from Pella, IA (45 miles east of Des Moines) to Grand Island, NE – servicing any and all counties on both sides of I80
Simple Sales Process: Receive Customer Inquiry - send email with past homeowner reference in their neighborhood within 1 hour – then call 1-3 days later – within 1 week complete a go-see. There is a 75% close rate on first call
Growth Opportunities: Service entire territory owned – currently only in half
Current Owner’s Responsibilities: Inbound Calls, Sales, and Scheduling Installers
Lead Mix: 1/3 Home Shows [5/year] (all pre-paid for 2016); 2/3 Internet &/or Corporate Site
Competitive Advantage: Only business that has a Manufacturer’s Life Time Warranty for product. Seattle location is doing over $30MM in Sales
Owner Profit/Cash Flow
Product Mix: 25% Gutters; 75% Gutter Covers
Average Invoice: $2,800
YOY Growth/Sales Trends: The business has shown a 22% increase in Sale and a 50% growth on Profit from 2013 to 2014
Profit Margin: 48%
Multiple: 2.85 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Price
$145,200 x 2.85 = $413,820
Price Reduction of $123,820 to a Buyer due to the Seller’s poor health
With the loan amount under $250,000 a Buyer could go SBA Express ~ less fees and quicker turnaround time!
|Growth Potential:||Service entire territory owned – currently only in half|
|Training/Support:||Sales for one year @ commission only|
|Seller Financing:||20% Seller Financing: $58,000|
Seller Reference #CON015
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