Opportunities
Glazing Contractor with 35k sq. ft. Factory & $7.5M in Backlog
Huge growth potential by expanding into TX, AR, KS, and MO!
Specifications
There is amazing growth potential for a new owner of this OKC Glazing Contractor; expanding services into Texas, Arkansas, Kansas, and Missouri would give a huge revenue boost! With nearly $6M in sales in 2020 and $7.5M already in their backlog, this company has been established in Oklahoma City for over 70 years. Working out of a 35,000 sq. ft. factory, the business has top-notch CNC capabilities that are unmatched in the area. Services include design, fabrication, manufacturing, and installation of aluminum curtainwall, storefront, heavy glass doors, glass handrails, and swinging & sliding aluminum doors. There are 45 full-time employees, including the owner, who handles general oversight, 3 Project Managers, 2 Estimators, 1 CAD Drafter, 1 Superintendent, 5 Foremen, 2 in Accounting, 10 in the factory, and a highly skilled team in the field handling installations. Their main focus is on mid to high-rise towers; sale size ranges from $250k-$3M, with $500k-$700k billed out each month. Most work (90%) is bid by invitation from the GC, with work secured 6-12 months into future. Along with $7.5M worth of signed contracts, the company has $3.5M in their pipeline.
Because it is such a specialized industry, the company uses the Union from time to time out of Texas and New Mexico. Their participation agreement with the union allows them to remain independent and hire from the union when needed for large projects. The company’s bonding capacity of $12M, along with their exceptional factory, equipment, and manpower, allows them to bid on monumental projects in the area.
Priced at $2,020,000, the factory, equipment, client relationships, industry reputation, and highly experienced team is already in place for this business. A new owner could step in and take this company to the next level. A 12.5% down payment of $252,500 returns $281,137 in the first year after debt payments – a 111% return on investment!
Business Highlights
Year Established: 1940
Location: Oklahoma City
Service Area: 100% within the state of Oklahoma
Services: Design, fabrication, manufacturing, and installation of aluminum curtainwall, storefront, heavy glass doors, glass handrails, swinging & sliding aluminum doors
Clients: General Contractors; currently 44 active clients
Lease: 35,000 sq. ft. factory: $14,500/month lease up for 5-year renewal in 2022 + 5,000 sq. ft. office building w/ 10 offices; would cost $7,000/month to lease from current owner
Reason for Selling: Other non-competing business interests
Personnel: 45 FT W2 employees, including 3 Project Managers, 2 Estimators, 1 CAD Drafter, 1 Superintendent, 5 Foremen, 2 Accounting, and 10 Factory; the rest of the staff is in the field (install)
Seller Training Period: 1-2 years
Growth Opportunities: Expand service area; huge growth potential if services were expanded into Texas, Arkansas, Kansas, Missouri
Current Owners’ Responsibilities: Owner 1: absentee; Owner 2: General oversight
Financial Highlights
- List Price: $2,020,000
- Cash Flow: $539,461
- A/R Contract: $883,939
- A/R Retainage: $365,907
*amounts may vary
Assets of Business
- Assets: $1,018,897
- Machinery & Equipment: $597,448: equipment lift, forklifts, fabrication equipment, CNC Machines, etc.
- Vehicles: $267,055
- Office Equipment, Furniture, Tools: $154,394
- Intangible: Top-notch reputation in the industry, long-standing relationships with customers
* Over 50% Collateralized *
Cash Flow Analysis
| Description of Financial Statement | Tax Return Accrual | Tax Return Accrual | Tax Return Accrual | Tax Return Accrual | Notes |
| 2020 | 2019 | 2018 | 2017 | ||
| GROSS SALES | $5,911,850 | $5,274,797 | $7,573,409 | $6,976,931 | |
| Net Income Shown on Financial Statement | $110,085 | $166,128 | $148,333 | $473,317 | |
| ADDBACKS | |||||
| Compensation to Owner | $184,513 | $208,393 | $236,721 | $236,720 | No replacement needed |
| 11% Tax on total W2 Salaries | $23,885 | $22,923 | $26,039 | $26,039 | |
| Depreciation | $63,909 | $4,147 | $18,714 | $34,612 | |
| Interest | $51,133 | $83,823 | $60,627 | $65,517 | |
| Personal Purchases | $64,806 | $11,075 | $5,576 | $9,868 | |
| Fuel | $9,727 | $2,570 | $3,177 | $3,153 | |
| Toll Expenses | $1,312 | $704 | $200 | $670 | |
| Vehicle Repairs/Payments | $20,585 | $7,387 | $18,365 | $17,461 | |
| 401k | $3,602 | $3,842 | $4,161 | $4,160 | |
| Medical Expenses | $28,889 | $12,421 | $10,200 | $11,029 | |
| Life/Supplemental Insurance | $2,100 | $174 | $1,302 | $1,303 | |
| Meals & Entertainment | $17,780 | $9,459 | $16,444 | $4,600 | |
| Fleet Insurance | $5,634 | $6,090 | $5,180 | $5,180 | |
| Cell Phone | $1,569 | $2,121 | $2,064 | $2,064 | |
| Travel | $1,312 | $1,119 | $2,881 | $1,083 | |
| Rent Adjustment | $-84,000 | $-84,000 | $-84,000 | $-84,000 | For corporate office |
| Other Unrelated salaries | $32,620 | $0 | $0 | $0 | |
| TOTAL ADDBACKS | $429,376 | $292,248 | $327,651 | $339,459 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $539,461 | $458,376 | $475,984 | $812,776 | |
| Profit Margin | 9.13 % | 8.68 % | 6.28 % | 11.65 % |
Valuation
Funding Example
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: | % |
Attachments
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