The Company is an 18+ year old well-established fabricator and installer of seamless gutters serving roofing companies, home builders and remodelers, paint contractors and homeowners primarily in the Dallas Fort Worth Metroplex and all surrounding counties. The business is home-based and may be relocated anywhere within the DFW Metroplex.
Rain gutters and downspouts protect buildings, foundations and landscaping from water damage. Seamless aluminum gutters make up the vast majority of the market. The company primarily installs 5” and 6” aluminum K-style gutters. (5” K-style gutters are the typical standard gutter found on a home; 6” are usually installed on larger roofs.) The company also installs leaf guards. Services include repair and maintenance of existing gutter systems, too. The company is a profitable business with strong growth potential. Though winter is typically the slowest period, this past winter/spring was a RECORD pace! Current backlog is approximately 3-4 weeks (estimated at 25-35 presold jobs) and the company is adding experienced crews.
They are an Equal Employment Opportunity Business & a member in good standing with the Better Business Bureau. All installations carry a 2-year warranty on all workmanship. Service calls are rare, usually not their fault. Company has had some customers for 17 years.
NOTE: Sales for Jan-July 2017 were $391,372, Net Profit was $109,883 – WOW!
The owner feels that a major advantage over his competitors is the seniority of his employees. 4 of the 5 installers average approximately 8+ years seniority and are documented with W2's. The 2 crews, are professional and are a major asset to the company. The customers are happy with the service and committed to using the company. The owner feels that he can be replaced by a hard-working owner who is dedicated to the company.
The company does no outside advertising other than signage on their trucks/trailers and a presence on Angies List. The company receives referrals from an estimated 50+ contractors. The owner feels that the business could grow faster by adding a sales person calling on builders and contractors.
The owner estimates that seamless gutters are 95% of sales and leaf guards 5%. The average job takes approximately 2-3 hours to install and is approximately $1,200 +/-. The owner estimates that, historically, the customer base is 50-60% roofers, 20-40% home builders/remodelers and 10-15% retail residential. The mix has changed in 2017 with growth in roofers/builders such that retail residential is approximately 5-10% for 2017 year to date. The customer base is diversified with the largest customer (roofer) estimated at 10-40% of total sales (varies by year) and the top 10 customers generating approximately 60% of total sales. The seller estimates that jobs are ROUGHLY Tarrant County 50% and Dallas/Collin 50%.
The asking price for the assets of the business is $150,000 ALL-CASH or $210,000 with $70,000 down at closing and $140,000 seller financing ( 5 years at 8% interest with approximate monthly payments of $2,838.70 to a purchaser qualified/approved by the seller). All financing is to be personally guaranteed. Seller prefers to sell for ALL-CASH. The assets include inventory at cost of $15,000, Accounts Receivables valued at $30,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $50,000. The price will be adjusted for actual inventory, work in process (WIP) and accounts receivables as of the sale date.
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Operations and facilities are located on the owner’s land and will need to be relocated after a reasonable transition period of 30 to 60 days. 800 sq ft of the 40x40 sq ft metal shop building is used for the business. The 120 sq ft office is located in the home. These are excluded from the sale. A new owner could rent a shop/office in a low rent area, approximately 800-1200 sq ft and conduct business anywhere in the DFW area. The cash flow has been reduced by $1,000 rent/month to reflect a budget cost. (Home Based)
The business attracts customers from the Dallas Fort Worth Metroplex and surrounding areas. The owner feels that the industry is competitive. Most companies have 1 to 2 crews (2 to 6 employees). Despite the presence of competitors, the business has continued to thrive and can further grow with marketing.
The seller has used the great customer service, truck and trailer signage, word of mouth referrals and Angies List to build the business. The owner is the only salesperson. A new, energetic owner can further increase sales & profits in many ways: 1) Use lawn signs on installations for drive-by traffic and neighbor referrals, 2) Add a sales person to call on roofers, builders and renovation contractors, 3) Create a basic website, 4) Use technology to simplify estimating, scheduling process, 5) Continue Marketing to builders and roofers. Seller feels that many more can be acquired if pursued by an aggressive owner, 6) Consider adding complementary products such as windows, window screens, solar screens, shutters, vinyl siding, soffit, garage door repairs, Christmas light installation, …, 7) Consider adding a new crew to prepare for continued growth
Support & Training:
Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreed compensation for a finite period.
Price $150,000 ALL-CASH or $210K with $70k down and $140k Seller-financing