53% Profit Margin for Niche Decorative Concrete Installer
With a 100% referral / word of mouth and continued growth since 2016!
With nearly 100% of their work coming from referrals and word of mouth, this decorative concrete installer and specialty garden retailer has seen continued growth since 2016! With a 53% profit margin in 2020 and a 45% profit margin in 2019, this company designs, installs, and maintains a niche, in demand, and high utility concrete product while also selling and installing specialty garden products related to their other work. 55% of revenues coming from concrete installation, 39% from retail, and the other 6% from subcontracting add-on services that utilize local landscapers and contractors, they have a well-established product line to supply the growing, and legal medical cannabis industry that has a huge potential for growth. Already in March of 2021, YTD retail sales revenue is up 180% and net income is up over $39,000. A very small team of employees has maintained these high margins with a low labor cost. This company has over 2,000 residential concrete clients and thousands of retail store clients, including high repeat clientele. This company closes more than 95% of estimates they perform. This company has strong cash flow and does not have any issues collecting payment, resulting in zero A/R.
The company has many years of experience in a niche specialty growing supplies industry and has relationships with major vendors and distributors. They are well known for their expertise in this growing specialty industry. This retail category has a huge untapped potential as medical marijuana has just become legal in Missouri. This portion of the business has exponential growth potential and could possibly be spun off into its own entity with multiple locations as the industry evolves. Also, by adding equipment, personnel and advertising , the concrete side of the business could easily be doubled or tripled with the leadership of a motivated buyer.At the purchase price of $1,625,000, a 12.5% down payment of $203,125 returns $241,664, which is a 119% return on investment in the first year!
- Revenue: $842,912
- Cash Flow: $449,474
- Year Established: 1999
- Location and Service Area: Kansas City Metro Area
- Clients: 2,000+ residential concrete clients, thousands of retail store clients
- Services: Decorative concrete, (55%), specialty garden products, delivery installation, service calls, and maintenance (39%), and subcontracting (6%)
- Employees: 4: 1 Owner + 1 FT Store Manager & 2 FT Seasonal Concrete Delivery & Service Workers
- Reason for Selling: Retirement Planning
- Seller Training Period: Negotiable
- List Price: $1,625,000
- Cash Flow:
- 2020: $449,474
- 2019: $291,186
- 2018: $236,015
- Assets: $400,000+
- Vehicles and Trailers: $129,544
- FF&E: $120,791
- Computer Equipment
- Office Furniture
- Store Fixtures
- Other Equipment
- Large number of miscellaneous items, tools, and equipment which were expensed and not carried on the balance sheet.
- Inventory: $150,000
- Retail inventory and construction supplies
- Intangible: Strong reputation, well-known and respected in community, organized sales process, proprietary installation techniques, processes and efficiencies, trademarked name and logo, 1st page organic google search with no advertising
*See additional asset information in the attached balance sheet
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$430,029||$265,860||$202,358||$182,105||$135,166|
|Compensation to Owner||$12,000||$12,000||$12,000||$12,000||$0|
|11% Tax on total W2 Salaries||$1,320||$1,320||$1,320||$1,320||$0|
|Meals & Entertainment||$125||$0||$0||$0||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$449,474||$291,186||$236,015||$215,282||$149,800|
|Profit Margin||53.32 %||44.79 %||41.90 %||40.56 %||32.81 %|
- 2020 Profit Margin: 53%
- This company has seen continued growth since 2016 in sales, net income, and seller’s cash flow.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020 Cash flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2020 Cash flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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