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Stone & Tile Cleaning, Sealing, and Polishing Services in Phoenix

Over 1,600 active clients and low overhead!

CASH FLOW
$214,197

Specifications

  • Price
    $615,000

  • Revenue
    $320,093

  • Cash Flow
    $214,197

  • Location
    Phoenix Metro Area

  • Service Area
    Phoenix Metro Area

  • Employees
    5: 2 Technicians, 1 manager, 1 administrative/sales, 1 financial oversight

  • Profit Margin
    44%

  • Intangible Assets
    Superior social media reviews, excellent reputation, high quality services, well-trained team, excellent profit margins

  • Reason for Sale
    Retirement

This business has over 1,600 active clients in the Phoenix Metro and low overhead costs! Established in 2013, this full-service stone cleaning, honing, polishing, and repair company has $115K in assets including 2 vans equipped with truck mounted hot water extraction equipment, high-speed weighted buffers, tools, and supplies. Two efficient technicians manage the entire on-site workload which involves cleaning, sealing, polishing, honing, stripping, repair, and treatment for all-natural stones as well as tile and carpet cleaning. The staff also includes a manager, an administrator/salesperson, and an overseer of the financials. All work is done for high-end homeowners, commercial businesses, hotels, banks, condominiums, or anyone with natural stone surfaces within the Phoenix Metro area. 

 

The business operates from one warehouse that is not open to the public. They do utilize a virtual office when it is needed, but operations can be run remotely with ease. The team may be lean but is incredibly effective in running the business day-to-day. The owner currently handles scheduling and operations.

 

This business has superior social media reviews, an excellent reputation, high quality services, and a well-trained team in place. Revenue growth would certainly be obtained by advertising, infusing capital into an additional van to increase capacity, or maximizing current assets with extended hours to generate additional income. Priced at $615,000, a 10% down payment of $61,500 returns $107,139 in the first year after debt payments – a 174% return on investment!

Business Highlights

  • Year Established in Arizona: 2013
  • Location and Service Area: Phoenix Metro Area
  • Clients: Businesses, hotels, high end homes and anyone with natural stone surfaces
  • Active Clients: 1,605 current active clients
  • Services: Full-service stone restoration including cleaning, honing, polishing, and repair, as well as full-service carpet and tile care 
  • Lease: 1,000: Warehouse, inside parking, virtual administrative office
  • Reason for Selling: Retirement 
  • Employees: 5: 2 Technicians, 1 manager, 1 administrative/sales, 1 financial oversight
  • Seller Training Period: 3 months
  • Growth Opportunities: Advertise, expand the current business model, infuse capital to add another can to increase capacity, maximize current assets with extended hours 
  • Current Owner’s Responsibilities: Scheduling and operations 

Financial Highlights

  • List Price: $615,000
    • Cash Flow:
      • TTM: $214,197
      • 2020: $201,770
      • 2019: $143,366

Cash Flow Analysis

Description of Financial StatementP&L Statement
May 2020-March 2021
P&L Statement
Jan-March 2021
P&L Statement
Cash
P&L Statement
Cash
Tax Return
Cash
Notes
20212021202020192019
GROSS SALES$284,221$74,330$319,794$404,026$433,163
Annualized$310,059$297,320
Net Income Shown on Financial Statement$64,523$18,396$57,890$36,771$-24,105
ADDBACKS
Compensation to Owner$104,500$28,500$114,000$114,000$114,375
11% Tax on total W2 Salaries$11,495$3,135$12,540$12,540$12,581
Depreciation$0$0$0$0$11,856
Interest$-40$0$528$2,225$6,676
Meals & Entertainment$372$91$426$390$1,798Personal expense
Cell Phone$990$270$1,080$1,080$1,080$90/month for personal cell phone
Insurance $9,882$2,695$10,780$10,780$10,780$898.36/month for personal insurance
One Degree Insurance$-426$0$282$564$0Non-onward going expense
Travel$4,951$1,079$4,144$853$8,325Personal expense
Donations$100$0$100$0$0
TOTAL ADDBACKS$131,824$35,770$143,880$142,432$167,471
Seller's Cash Flow = Total Addbacks + Net Income$196,347$54,166$201,770$179,203$143,366
Annualized
Profit Margin69.08 %72.87 %63.09 %44.35 %33.10 %
.
  • Profit Margin 2019: 44%

Typical Clients

  • High-end homeowners
  • Businesses
  • Hotels
  • Anyone with natural stone surfaces

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

Full-service stone maintenance including:

  • Cleaning
  • Sealing
  • Polishing
  • Honing
  • Stripping
  • Repair
  • Treatment

Full-service carpet cleaning

Tile & grout cleaning

Employees

Total Employees: 5

  • 2 Technicians
  • 1 Manager
  • 1 Administrative
  • 1 Financial oversight

Growth Opportunities

  • Advertise
  • Expand the current business model
  • Infuse capital to add another van to increase capacity
  • Maximize current assets with extended hours

Valuation Details

Funding Example

Purchase Price:

$615,000

$
%
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:
3 year average cash flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
3 year average 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.