Summary Description: The Company is a licensed and insured, residential room additions company that holds 60% of the market share in a niche of the residential segment. Established in 2004 the company has generated over $42 million in aggregate sales since inception. Approximately 90% of the jobs are in Orange County and 10% are in the Inland Empire. There are two full time and one part time active owners in the business. However, it can be and has been, managed by one owner with a high-level manager or sales representative.
Core competitive differentiators
* In-house project management and workforce, eliminates the need for architects and subcontractors.
* Proprietary, customized software for proposals, customer and project data and automates marketing tasks.
* Extensive and targeted database of 120,000 homes as potential customers.
* 15 years of 95%+ customer satisfaction acts as a continuous source of new business.
* Long-term relationships with key personnel in various municipal entities based on quality of field workmanship results in better than average approvals and smooth turnaround time.
* Over 50% of projects are performed in home models previously completed. This results in a manufacturing mindset of reportingly significant operational efficiencies.
* Processes and procedures in place are similar to those of a large corporation.
* The niche projects typically cost less per square foot then the value of the home.
The business is positioned well as a 'bolt-on' acquisition for an existing business of a similar trade like windows, doors, or architecture. It is also a strong opportunity for an independent contractor looking for a established platform as it has the processes and personnel in place for rapid expansion.
Business Line Expansion the company recently expanded bidding/building with larger residential projects. Given that these new offerings are often 100k-200k per project, significant volume growth is likely in 2020. (Company already has in-house project management capabilities to meet any growth demands.)'
Investment: The Company's position in the market along with successful business history will lead to different value perspectives among various investors. Thus, an asking price has not been established. Parties interested in pursuing this transaction will be required to submit a non-binding proposal detailing the preliminary valuation of the company and suggested transaction structure. Interested parties will be required to sign the NDA and provide a description of the source of funds available for acquisition. The business has been pre-approved by the SBA with 10% cash down. Buyers will need to qualify based on financial strength, credit, and business experience in a related industry.
*The sellers are motivated and will consider reasonable offers which may include financing for qualified buyers.
Facilities: The company is based in Orange County, operates from a 1,600 sq ft space and rent is only $2,227 per month. The facility is centrally located and easily accessible to the customer base.
Growth and Expansion: The sellers recognize that the current platform has room for growth by expanding upon the geographic area and diversifying the services and product lines. In addition, utilizing digital marketing strategies will improve access to potential customers and further reduce customer acquisition cost.
Support/Training: The sellers will offer comprehensive training and the three partners will stay on and assist the buyer post close.
Terms: Cash/SBA/Submit Reason
Selling: Upcoming Retirement of one part time partners.
Year Established: 2004
Employees: 15 full time and 1 part-time employees with an average tenure of 10 years.