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Opportunities

Remotely Operated Commercial Construction

Already has $1.7M+ on the books for 2022!

CASH FLOW
$407,169

Specifications

  • Price
    $1,250,000

  • Revenue
    $1,926,501

  • Cash Flow
    $407,169

  • Multiplier
    3.10

  • Location
    Orlando, FL area

  • Service Area
    Nationwide

 

This remotely operated commercial construction company already has $1.7M+ on the books for 2022! With no physical location, it helps to keep the overhead costs low and the job ability flexible.  The business is based in Florida but works regularly across the US, utilizing local 1099 contractors and traveling as needed. There are a couple hundred 1099 contractors on the books that are available to be used, depending on what is needed by the job.  Their primary focus is complete teardown and remodeling of existing commercial locations.  There has been a handful of new builds over the years, but that is rare.

 

Currently, there is no advertising or marketing being done.  The business runs 100% on repeat clients and positive word of mouth referrals!  A big growth opportunity would be to get the name out a bit more locally to expand the customer base.  Another place to grow would be to start working with general contractors and property managers to put maintenance contracts into place.  The company is already able to handle maintenance issues on the job site, and while there are no recurring contracts in place, they could be easily added!

 

The seller is looking at retirement options and what may be next for himself and his family.  At a purchase price of $1,250,000 and a down payment of $187,500, a buyer would see a 113% return on investment in the first year, making this a perfect opportunity for a first-time buyer or seasoned entrepreneur. 

 

Business Highlights

  • 2021 Annualized Revenue: 1,926,501

     

  • 2020 Cash Flow: $407,169

     

  • Year Established: Incorporated in 1993, doing work in the area since 1980

     

  • Location: Orlando, Florida area

     

  • Service Area: Nationwide

     

  • Clients: Commercial businesses – does not currently work with GC’s or property managers

     

  • Services: All commercial – mostly remodel, mercantile for strip centers, warehouses, and distribution centers; there have been some new builds, but that is rare

     

  • Employees: 2 – 1 FT office admin, 1 FT supervisor + 1099’s as needed for different jobs

     

  • Reason for Selling: Retirement planning

     

  • Seller Training Period: 6 months – 1 year

Financial Highlights

  • List Price: $1,250,000
  •  

     

     

    ·         2020 Cash Flow: $407,169

    *amounts may vary

     

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Nov
Tax ReturnTax ReturnTax ReturnNotes
2021202020192018
GROSS SALES$1,444,876$1,806,374$2,675,396$2,046,683
Annualized$1,926,501
Net Income Shown on Financial Statement$191,689$348,721$242,991$-10,893
ADDBACKS
Compensation to Owner$84,375$100,000$100,000$100,000
Tax on Owner's Compensation$9,281$11,000$11,000$11,000
Depreciation$0$1,246$136,186$11,422
Interest$1,251$2,738$264$1,310
Auto Expense$13,685$15,348$20,025$20,316Personal expense
Meals & Entertainment$8,444$0$5,723$1,475Personal expense
Cell Phones$900$1,200$1,200$1,200$100/month for personal lines
Travel Expense$-1,072$0$43,195$43,026Personal expense
Health Insurance$5,187$6,916$6,916$6,916$576.32/month for personal
Replacement$-60,000$-80,000$-80,000$-80,000To replace/retain owner
Charity$6,218$0$0$0Discretionary expense
TOTAL ADDBACKS$68,269$58,448$244,509$116,665
Seller's Cash Flow = Total Addbacks + Net Income$259,958$407,169$487,500$105,772
Annualized$346,611
Profit Margin17.98 %22.54 %18.22 %5.17 %
.

Valuation

Funding Example

Purchase Price:

$1,250,000

$
%
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
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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.