Commercial Roofing in PA – 90 Employees
Over $14.3M in sales in 2020!
With over $14.3M in sales in 2020, this commercial roofing company has 90 W2 employees in place! Established for over 20 years and with 100% commercial clients, their focus is on larger industrial and institutional projects; project size ranges from $75k to $3.75M. Offering reroofing (50% of their revenue) new construction (40%) and repair & maintenance (10%) within a 75-mile radius of Pittsburgh, this team of 90 employees is comprised of 75 craftsmen and sheet metal workers, along with 15 salaried support staff. The company subs out only as needed based on project size and ancillary services in the contract. Their clientele is a diverse assortment of consultants, general contractors, and private owners; this business is highly sought after in the greater Pittsburgh region. Revenue reached over $14.3M in 2020, and 2021 is looking highly profitable, with over $16M already in their backlog. With over $9M in assets, the bank loan is over 70% collateralized.
The company is a mixture of union and non-union, with the union side making up 80% of their total sales and 60% of their current projects. Generally, they are the largest employer on a month-to-month basis in the union, they employ an average of 44 roofers and 15 sheet metal workers per day with a fairly even split of new construction vs. renovation, and mostly in the public sector. There are a large number of institutions in the area that require union members to perform their projects. The non-union side is more in the private sector, with 80% of their revenue comprised of new construction.
Priced at $12,250,000, this business is in a prime position for growth. Pursuing more maintenance work and roofing-related sheet metal projects would certainly increase revenue. With already long-standing client relationships in place, organic growth is inevitable if services are expanded.
Year Established: 1999
Location: Pittsburgh, Pennsylvania
Service Area: Within 75-mile radius of Pittsburgh
Services: 50% reroofing, 40% new construction, 10% repair & maintenance
Clients: 100% commercial: Consultants, General Contractors, private owners
Building: 12,500 sq. ft. building, 5,800 of which is office space, all on 3.4 acres
Reason for Selling: Other endeavors
Personnel: 90 W2 Employees: 15 salaried support staff + 75 hourly craftsmen & sheet metal workers; subcontractors used as needed for ancillary work (95% is self-performed)
Seller Training Period: 6-12 months
Growth Opportunities: Pursue more roof maintenance projects as well roofing-related sheet metal projects (coping, gutters, downspouts, etc.)
Current Owners’ Responsibilities: Owner 1: Operations Management, Estimating, Accounting; Owner 2: day-to-day operations; Owner 3: Absentee
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Combined Income Statement
Combined Income Statement
Combined Financial Statements
|Net Income Shown on Financial Statement||$1,888,473||$2,308,425||$572,373|
|Pension||$43,238||$54,719||$49,840||401k matching at $17,238/year and bonus of $26k/year|
|Dues||$19,937||$23,439||$22,401||$2,500/month - golf|
|Life Insurance||$15,900||$15,900||$15,900||$5,300/year for 3 Life & Disability policies|
|Meals & Entertainment||$64,465||$96,078||$109,258|
|Rent||$-1,527||$3,152||$1,133||$13,500/month onward going - owns real estate|
|11% Tax on Owners' Wages||$47,410||$47,410||$47,410|
|Retirement Savings Plan||$53,633||$54,719||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$2,614,063||$3,075,359||$1,317,794|
|Profit Margin||18.23 %||16.51 %||8.93 %|
- 2020 Profit Margin: 18%
- List Price: $12,250,000
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
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Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020 Cash Flow
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Buyer's Net Operating Income (NOI)
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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