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Maintenance in Commercial Roofing: Reoccurring

100% Self-Performing Labor with 95 W2 Employees!

CASH FLOW
$2,592,337

Specifications

  • Price
    $14,950,000

  • Revenue
    $17,242,091

  • Employees
    95+ W2 Employees: 12 project managers & division managers, 10 salaried support staff + 75 hourly craftsmen & sheet metal workers; subcontractors only used for ancillary trades (electric, plumbing, etc.)

  • Cash Flow
    $2,592,337

  • Location
    Pittsburgh, Pennsylvania

  • Service Area
    Within 75-mile radius of Pittsburgh

  • Profit Margin
    21%

  • Reason for Sale
    Other endeavors

  • Intangible Assets
    Word-of-mouth referrals, strong foothold in the greater Pittsburgh area, long-standing client relationships

 

Their client base is made up of 100% commercial clients including consultants, general contractors, private real estate owners, construction managers, and municipalities, 65% of whom are repeat clients. With 95 W2 Employees, this commercial roofing business is able to self-perform 100% of their labor. With $16M already lined up in backlog (committed contracts), they are on target to have the best year ever in 2023, and there is no sign of slowing down in 2023! Their services include reroofing/scheduled replacement (50%), new construction (40%), and general repair & maintenance (10%) and are able to service a wide service area including a 75-mile radius of Akron. The sale of this business includes $5M in assets, including 30+ trucks & trailers, and $2.6M in equipment. This means that new ownership would be able to easily build on current growth opportunities without needing to invest excessive resources to do so. Growth opportunities include going after more maintenance/service work, sheet metal projects, and the recently approved US Infrastructure Bill will also provide growth across the municipal clients they work with. 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-tomonth 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 $14,950,000, this business is primed for new ownership with already long-standing client relationships in place, an excellent reputation, and a strong word of mouth job pipeline. The owners are looking forward to retiring out of state, but the two active owners are more than happy to stay on board post-close to ensure a smooth transition. Owner 1 handles the oversight and management, as well as review of estimates and would stay for 1 year, Owner 2 handles the day-to-day operations and would stay for 2 years, and Owner 3 (absentee) does not need replacing. They would be willing to retain equity or carry a note for 15%, showing their vested interest in the ongoing success on the company.

Purchase Price:

$14,950,000

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Bank Loan Needed: $

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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:
2021 Cash Flow 		$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2021 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
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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.