Asbestos Abatement and Remediation Services--$1.75M Backlog
With nearly $5M in sales!
Priced at $985,000, a 12.5% down payment returns $182,712 in the first year after debt payments – a 148% return on investment! With nearly $5M in sales in 2020 and $1.75M in backlog, this environmental remediation business has been established in upstate New York since 2012! In addition to asbestos removal (60%), they also provide lead remediation, interior and structural demolition (20%), and spray-on fireproofing (20%). Most business is accomplished in Upstate New York (85%), with the remaining work completed in the New York City area. Customers include government organizations, state agencies, general contractors, construction managers, property managers, and property owners. Project timelines are from a few weeks to a several months long and most contracts (85%) are earned through a request for proposal process. Opportunities are plentiful for growth in the New York City Area as well as widening the service area to include New Jersey, Pennsylvania, or additional regions of New York.
The company operates from a small office and warehouse space. Purchasing and storing large amounts of equipment is not necessary as this business rents any large items needed to complete projects and houses very few assets on site. All inventory and materials are ordered by project and may be briefly stored by this business or drop-shipped to the work site.
Nearly 95% of all work is completed in-house by a team of five to twenty-five floating laborers. Rarely subcontractors are utilized for large projects or those at long distances. Supporting this team are two supervisors, one accountant, and one team assistant.
- Revenue: $4,925,938
- Cash Flow: $308,677
- Year Established: 2012
- Location: New York
- Service Area: Upstate New York, five boroughs, and Long Island
- Services: Asbestos removal (60%), interior demolition (20%), fireproofing (20%)
- Clients: Government, state agencies, general contractors, construction managers, property managers, property owners
- Reason for Selling: Divestment
- Personnel: 2 Supervisors, 1 accounting, 1 assistant, 1-20 floating laborers
- Seller Training Period: 6 months
Minority Business Enterprise (MBE)
- Port Authority of New York And New Jersey
- New York State
Disadvantaged Business Enterprise (DBE)
- New York State Department of Transportation
- Metropolitan Transit Authority
For some projects, the certifications are helpful, but may not be necessary. Some contracts require the work to be self-performed and not subcontracted out.
- 2 Supervisors
- 1 Accountant
- 1 Assistant
- 1-20 floating laborers
- Project based
- General oversight of the day to day business:
- Select projects
- Legal Items
- General oversight of the day to day business:
All company license and crews have their handlers license.
- Asbestos removal/general environmental remediation (60%)
- Demolition (20%)
- Fireproofing (20%)
- Project management
- List Price: $985,000
- Cash Flow:
- 2020: $308,677
- 2019: $211,396
- Assets Included in Purchase*
- Equipment: $15,000: Office equipment, tools, furniture, fixtures; All equipment is rented, so there is little long-term investment in equipment overhead
- A/R: $1.37 Million (Averages $750-$1M)
- Average Backlog: $1.5-$1.9M
- Intangible Assets: Knowledgeable and well-trained team who work independent of owner supervision
*amounts may vary, assets may be depreciated, replacement cost, or fair market value
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$-45,971||$31,125||$51,880||$-55,070||$-2,793||$6,009|
|Compensation to Owner||$150,000||$74,360||$142,020||$75,790||$62,920||$62,920|
|11% Tax on total W2 Salaries||$16,500||$8,180||$15,622||$8,337||$6,921||$6,921|
|Auto-Personal Use||$376||$272||$715||$1,232||$1,269||$2,377||10% is personal|
|Cell Phone||$1,920||$1,920||$1,920||$1,920||$1,920||$1,920||$160/month for personal lines|
|Rent Adjustment||$15,505||$15,022||$14,940||$8,450||$7,720||$16,851||Ongoing rent about $7k/year|
|Per diem||$17,000||$17,000||$17,000||$17,000||$17,000||$17,000||For owner|
|Seller's Cash Flow = Total Addbacks + Net Income||$308,377||$211,396||$196,019||$61,436||$96,034||$115,794|
|Profit Margin||6.26 %||5.73 %||4.82 %||3.04 %||6.68 %||8.90 %|
- During COVID, one $2.6M project was lost. They had their commitment but the day before, the owner got a call and the project was put on hold. That income has been replaced. Several hospital jobs picked up and they did a lot of “essential” work.
- For 2018 and 2019, about $5.1M came from MBE work.
- From 2016-2018, the company was paying off debt incurred in 2015.
- State agencies
- General contractors
- Construction managers
- Property managers
- Property owners
- Due to the political climate, the union is prevalent in the work they do. The union will also reach out to them when there is a private client that needs a project done.
- Focus on driving new sales in New York City
- Tap into more federal funds and programs
- Expand the service area beyond upstate New York
- New Jersey
- The remainder of New York State
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: $
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The bank will require a minimum ratio of 1.5 to be lendable.
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The amount of money the Buyer will retain as profit.
2020 Cash Flow
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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