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Environmental Remediation, Demolition, and Fireproofing in Upstate New York

Nearly 95% of all work is completed in-house!

CASH FLOW
$308,677

Specifications

  • Price
    $990,000

  • Revenue
    $4,925,938

  • Reason for Sale
    Divestment

  • Location
    Lower Hudson Valley New York

  • Service Area
    Upstate New York, five boroughs, and Long Island

  • Employees
    2 Supervisors, 1 accountant, 1 assistant, 1-20 floating laborers

  • Equipment
    $15,000

  • Lease
    Operations will soon be condensed into one location with an office space and large warehouse

  • Intangible Assets
    Knowledgeable and well-trained team who work independent of owner supervision

Nearly 95% of all work is completed in-house for this environmental remediation company! With nearly $5M in sales in 2020 and $1.75M in backlog, this 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.  Rarely subcontractors are utilized for large projects or those at long distances.  Supporting this team are two supervisors, one accountant, and one team assistant. 

 

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. 

 

Priced at $990,000, a 12.5% down payment returns $182,073 in the first year after debt payments – a 147% return on investment! 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.  

Business Highlights

  • 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  

Certifications

Minority Business Enterprise (MBE)

  • Port Authority of New York And New Jersey
  • Pennsylvania
  • New York State
  • Delaware

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.

Personnel

  • 2 Supervisors
  • 1 Accountant
  • 1 Assistant
  • 1-20 floating laborers
    • Project based
  • Owner
    • General oversight of the day to day business:
      • Estimating
      • Select projects
      • Legal Items
      • Financials

All company license and crews have their handlers license.

Services

  • Asbestos removal/general environmental remediation (60%)
  • Demolition (20%)
  • Fireproofing (20%)
  • Project management 

Financial Highlights

  • List Price: $990,000
  •  

    • 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 StatementP&L StatementTax ReturnTax ReturnTax ReturnTax ReturnTax ReturnNotes
202020192018201720162015
GROSS SALES$4,925,938$3,690,970$4,067,096$2,023,288$1,438,693$1,300,584
Net Income Shown on Financial Statement$-45,971$31,125$51,880$-55,070$-2,793$6,009
ADDBACKS
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
Depreciation$0$16,740$11,333$0$0$0
Interest$35,900$30,777$5,589$3,777$1,077$1,796
Auto-Personal Use$376$272$715$1,232$1,269$2,37710% is personal
Cell Phone$1,920$1,920$1,920$1,920$1,920$1,920$160/month for personal lines
Replacement$-65,000$-65,000$-65,000$0$0$0Admin replacement
Rent Adjustment$15,505$15,022$14,940$8,450$7,720$16,851Ongoing rent about $7k/year
Per diem$17,000$17,000$17,000$17,000$17,000$17,000For owner
Insurance $178,972$81,000$0$0$0$0
Donations $3,175$0$0$0$0$0
TOTAL ADDBACKS$354,348$180,271$144,139$116,506$98,827$109,785
Seller's Cash Flow = Total Addbacks + Net Income$308,377$211,396$196,019$61,436$96,034$115,794
Profit Margin6.26 %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.

Clients

  • Government
  • 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.

Growth Opportunities

  • Focus on driving new sales in New York City
  • Tap into more federal funds and programs
  • Expand the service area beyond upstate New York
    • Pennsylvania
    • New Jersey
    • The remainder of New York State

Valuation Details

Funding Example

Purchase Price:

$990,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

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: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2020 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.