Colorado Business’s sold

Littleton business for sale:

Concreet Curb, Inc. (S- Corp) 

(Since 1952) 

Address:

8118 Midway Dr.

Littleton, CO 80125

The Sales Price of the company is $3,500,000 but the seller will carry $600,000 – $800,000 over 2 years for a qualified buyer.  This business will qualify for an SBA loan, but the buyer must have at least $600,000 of their OWN liquid funds available to put down.

2016 Cash Flow was over $1,750,000 on sales of $7,482,879.   2017 is expected to be 15%-20% higher in both areas.

YOU MUST see the 45 minute video interview with the owner in the data room.  Email me if you want the financials on this offering.

The sale includes over $1,000,000 in accounts receivables, $100,000 in cash, and over $1,000,000 in assets, vehicles, and heavy equipment. The seller will “guarantee” the collection of the AR for the buyer.  The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE, other than accounts payable.   This totals about $2,100,000 in total assets.    Please see the comprehensive list of all vehicles, equipment and values for each piece in the data room below, which also contains the last 3 years of company financials and tax returns etc. (below)

The seller will stay on for 3-4 months (or however long the buyer wants) to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.

Denver business sales.

Critical Points to Understand:  

1. Selling for 2 X’s last year’s cash flow.  Consider.. how many businesses sell for 2 X’s cash flow, AND include over $1MM in solid accounts receivables, and $100k in cash, and also over $1MM in equipment?

Best at What We Do in Denver:  Without going into a great level of detail on what we do at this stage, simply put, we pour and form concrete for curb, gutter, sidewalk and bike paths/trails using a slip-form paver.

We work almost exclusively for land developers/home builders in new residential developments.  As you probably know, most every residential community has homes located side-by-side. In front of those homes would be a sidewalk/walkway, and a gutter poured from concrete for drainage for rainfall/storm water run-off.  The width of this curb, gutter and walkway is typically 8 feet.

Most of our competitors pour concrete either manually or with a slip-form paving machine.   They often do not have the correct equipment or the right size of paver. In many cases they are not comfortable with the wide profiles (i.e., 6’ or larger curb sizes).   This process is very labor and time intensive and can take twice the length of time and substantially more manpower.

In short, we have the best equipment and can pour concrete up to 12’ wide.  We have the ability to place/install concrete twice as fast and much more efficiently than our competitors. We can complete the job at lower costs for our customers, resulting in much greater profits for us.  While most of our competitors can only pour about 2500 linear feet per day, we typically pour 4000 feet per day. Ultimately, we produce twice the production with the same manpower.

In terms of quality of work, we have the finest reputation and working relationship with municipalities, counties, inspectors and materials testers.  We always meet or exceed specifications for each job.

2. We ONLY take on a smaller % of the work that is being asked of us.  We could easily double or triple our sales and cash flow by simply taking on more of the jobs that we are invited to complete.  Almost all of our work is for long-standing steady, loyal customers who use us over-and-over, year-after-year.  Unlike other contractors in our industry, we don’t have to bid for the jobs, they are just handed to us to review, estimate costs; then perform the work if WE want to do it.  This is why we enjoy the incredible margins/profits that we do; we don’t have to “compete” for the work.  No one else is in the ‘bid hat’ competing against us.  It took years to develop the solid reputation needed to have work just handed to us this way.

3. We had a slow start to 2017 due to wet and rainy weather.  However, the seller is confident that he will hit over $7.5MM in sales and cash flow another $1.6MM – $1.7MM.

4. Best Equipment: We have the finest state-of-the-art concrete pouring and forming equipment in the industry.  Everything is fully automated so we have fewer employees on a given job, the quality of work is excellent, and we can move through a project as fast as possible.  It is for all these reasons that our margins/profits are what they have been the past few years. In our industry it is suggested that “you are as good as your equipment, and your employees”.  As mentioned, we have the best equipment, but we also have the best employees in the field. We have 25 of the best field employees in the industry; most of them have been with us for 15+ years, they are loyal and well-paid.  Our employees understand exactly how to run a job and operate with no oversite or management from the owner after all these years, they are self-sufficient and run themselves.  The owner and his wife can take off for a lengthy vacation anytime they want and things continue to run just fine.

5. Our Great Employees: The new owner will require no specific construction experience since our workers know how to run themselves.  However, it is encouraged that the new owner should take the time to be a full-time, hands-on manager/operator (at least for the first year to learn the business). He/she should have good management skills, know how to work with people, be highly motivated/high energy, strong with financials, be aggressive in general, and wanting to grow the business going forward.  The seller is very desirous of finding someone to take over the business and take it to the next level, where it is projected to go. The owner/seller at the age of 65 is burnt out and wants to go home and tend to his wife’s medical conditions and travel with her while they can.

6. Marketing: We have NO website, no branding, or any level of internet presence.  Please go ahead and try to google us or find us online… You will find NO website, no branding, virtually no existence of a company other than a one- line item on YP/yellow page.  At first look this may seem to be a concern for a buyer reviewing a business to possibly purchase.  However, we see it another way…. In 2016 the business grossed $7.5 million in sales and cash-flowed $1.7 million, and it will do the same in 2017 as well.  The seller has been very deliberate about not wanting to have a website or any Internet presence whatsoever simply because they do not want to receive enquiries from customers or contractors that they don’t already work with.  The owner/seller has an excellent rhythm and long-standing relationship with 15 to 20 customers that they love to work with and enjoy excellent profits from.  The company has never been stiffed on a job and has never had difficulty collecting any of their receivables.  The seller is not interested in “widening the spicket” and taking on more work from customers they don’t know.  The owner would rather keep the business small and remain low-key.  A new owner who is more aggressive and has interest in growing the business would be wise to pursue a wide variety of business development efforts such as building a broad level of web presence, and begin some level of branding for the company for the first time in its history.

In short, this is all a new owner would need to do in order to double the sales and cash flow. A new owner could pursue this effort or simply take on more work from existing customers that is being asked of them currently, or preferably do both.

After 60 years in operation, we still have the same old logo.

7. Facility/Office and Lease Rate Seller Needs:  The operation is run out of a fully-functional 2 acre prime location with 5,600 SF office and 3 bay large commercial building.  The seller owns the property and seeks to keep it and lease it to the new owner going forward.  The seller wants $5,500/mo. NNN for the first 1 year, then $6,000/mo. for years 2-3, then $7,000/mo. for the next 4 years, for a total of 7 years of lease (minimum lease term).  Note; the land and location is worth $7,000/mo. NNN right now, but the seller is not greedy and wants to ensure that the new owner has the same level of rent that the business enjoyed for the last several years that the seller paid himself – a “sweetheart lease rate’.

8. A New Owner Could “Easily” Double the Sales and Cash Flow Within 2-3 Years:  It is a “hay day” in the Front Range of Colorado. The entire metropolitan area ranging from Fort Collins all the way down to Pueblo Colorado is nothing short of explosive growth and is one of the top 3-5 metropolitan areas in the United States for growth and expansion. Please see the articles below or any articles you can Google would indicate we are in the top 5 metropolitan areas on a consistent basis over the last 4-6 years.   As a result, there is all the work you want from our customers as well as many other customers that call us on a regular basis that we turn down because we are simply saturated with our current workload.  The seller has gone on record in the video enclosed, clearly stating that a new owner could very easily double the sales, gross profits and net income over the next 2 to 3 years and would only need one more paver and a few other smaller pieces of equipment. It is likely the new owner would need more workers, materials and other direct costs associated with the additional sales, however, with a very low overhead and debt free equipment, a tremendous amount of the incremental sales fall to the bottom line.

9. Our Customers and Suppliers Love Us and Would Be Excited to Hear about the Business Sale:   We have deliberately worked almost exclusively with one supplier to get the large majority of our materials and many would consider this risky, to have all of your eggs in one basket.  Undoubtedly, there are many suppliers that would love to have an opportunity to secure our business. We have elected to work with one company and because of the incredible volume we buy annually, we enjoy the lowest costs/rates for materials in our market.  This is another reason that our profits are so high.  In addition to paying the lowest costs, we are also virtually guaranteed to get materials delivered to a job site during good times, and bad.  Sometimes in our industry work is so explosive that suppliers can’t keep up with demand and there is only so much to go around.  Our competitors simply don’t have the buying power and the long-relationship that we have with our supplier, and consequently, when supply is short, we enjoy preferential treatment and get materials first.  This ensures that we can meet the obligation we have with our customers. Notably, our competition doesn’t enjoy this benefit.

Separately, in recent years our customers and supplier have periodically inquired about the owner’s potential interest in selling the business because he is of retirement age and slowing down quite a bit (relative to what is going on in Denver’s growth). Simultaneously, the seller’s spouse has a significant medical condition that they have known about for some time. Although the employees would likely be surprised about the sale, the suppliers, customers, and ultimately the employees, we believe would be excited and supportive to hear of the sale simply because a new owner would likely want to grow the business swiftly right out the gate.  Naturally, the employees would be happy to see the business grow so they can earn more money, the customers who have been asking for years to have the company perform more work would be able to finally expand the existing relationship, and of course, the suppliers would love to double the sale of materials to this company, without doubt.  In short, the seller has been the bottleneck of the business and has deliberately maintained it in the $5-8MM gross sales range, even over the last 3 years, while the macro picture has been so strong.  About 10 years ago the company was grossing between $12-14MM/yr. in sales because the seller was more ambitious.  As mentioned, in recent years the seller has elected to pull back on the reins, which a new owner should change once they get acclimated with the operations and business model etc.

10. Licenses and Permits: The new owner needs no specific licensing or permits, etc.  The company has all licenses needed to operate going forward.  The new owner would be required to maintain existing city licenses

The company is 60 years old, but was bought by the current owner in 1982 and a new corporation was formed.  The company was purchased in 1982 by the current owner.

Reason for seller:  Jim Heinzerling (age 65), the owner, is ready to retire.  He would like to spend more time traveling and enjoying retirement with his wife, Cheryl.

Earn-out:  The seller would like an “earn-out” of another $500K-$600K if the business hits certain financial goals that can be agreed upon between buyer and seller.  This will ensure that the seller has an incentive to provide the best possible “hand-off” to the buyer to continue continued solid cash flow going forward.  In other words, if the business continues to gross say $7MM/year and make say $1.5MM – $2MM/year, then the seller would be paid another $200K/yr. for 3 years on top of the $3,500,000 for the sales price.  If the business does not maintain similar numbers in a given year, then the seller would not get all of the earn-out.

2016 Cash Flow was over $1,695,087 on sales of $7,482,879.   2017 is expected to be 15%-20% higher in both areas.  

Selling a business.

Company website:  WE HAVE NO WEBSITE OR WEB PRESENCE.  The point we make here is that we Grossed $8MM last year – can you imagine how well we would do with some level of “branding” web existence in this day-and-age??

Representations and Warranties of the Company’s Overall Standing:  The company is in excellent standing. As stated above, we have NOT had 1 complaint that we did not fix and we have never failed on a job in any respect.  When something has gone wrong in the past or wasn’t done correctly, we have fixed it on our watch and our dime. 100% of our customers have been completely satisfied in every respect.  We have had no legal battles or lawsuits or pending violations of any sort. We have never had 1 OSHA violation.  We have had just 2 significant workmen’s comp. claims and have an excellent safety record.  We take worker safety very seriously and the seller is 100% committed to sign a contract that provides for a solid protections of the buyer in all of these areas.

Lease Terms Required:  As stated above seller wants $5,500/mo. NNN for the first 1 year, then $6,000/mo. for years 2-3, then $7,000/mo. for the next 4 years, for a total of 7 years of lease (minimum lease term).  Note; the land and location is worth $7,000/mo. NNN right now, but the seller is not greedy and wants to ensure that the new owner has the same level of rent that the business enjoyed for the last several years that the seller paid himself – a “sweetheart lease rate’.

Please email if you have any specific question(s), path forward, or have potential interest in a phone all or face-to-face meeting with the owner/seller.  

The Big Picture:  The Front Range, Colorado is fastest growing city in the US.  Denver is going CRAZY!  Simply put, Denver and the entire Front Range of Colorado is nothing short of the fastest-growing areas in the US.  The macro story for construction and overall growth is extraordinary and has been this way for the past 5 decades.  Ever during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the US and in the past 3-5 years had exploded forward faster than almost every other major city in the US.

Colorado is the best State in the country to own a business and is the “#1” fastest growing and strongest economies in the United States, per Money.MSN and Business Insider in September 2014 article.  This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in 2015-2017.

Denver is #1 for leading locations for economic strength indicators and eighth for both workforce and recession-busting attributes.

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Colorado Business For Sale:

This is the actual sales packet for:

Liberty Home , Inc.  (S- Corp)

This company is a DBA for American Window Co., Inc. (on the tax returns)

Absentee-Owned for Many Years Now.

(Since 1979)

The Sales Price of the company is $1,300,000 and the seller will up to $400,000 of the sales price.  This business will qualify for an SBA loan, but the buyer must have at least $500,000 of their own liquid available to put down. 

 

2016 Cash Flow was over $750,000 on sales of $5,062,906.  Please see the rationale for this estimate in the data room below.

 

The sale includes about $50,000 (depending on the close date) in accounts receivables and about $400,000 in assets, vehicles, and equipment.  The sale also includes over $400,000 in awning inventory and another $200,000 in steel inventory.  The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE, other than accounts payable and costs against inventory.  The sale includes 13 well-stocked vehicles, and another $100,000 in current value of a wide-variety of state-of-the-art operational equipment.  This totals about $1,150,000 in assets.    Please see the comprehensive list of all vehicles, equipment and values for each piece in the data room below, which also contains the last 3 years of company financials and tax returns etc. 

At a sales price of just $1,300,000, the owner is selling the company for essentially the net asset value of the company based upon the most recent balance sheet.  Stated differently, the seller is NOT seeking a sales price of 3X’s or 4X’s the cash flow which is what most businesses sell for with assets of this value that are debt free, especially ones that are currently running at a fraction of their potential since the owner is an absentee.  The seller is highly motivated for personal reasons; the recent death of her husband of 45 years.  This business is clearly worth well over $2,000,000, plus another $1,000,000 for the goodwill, and blue sky of a business that cash flows this much with a stellar reputation. However, the seller is not greedy and wants the right person to come in and, for the first time in 10 years, become an on-site operating owner.  She wants someone who can care for all her long-standing, loyal employees and bring fresh energy to the workforce since they have not had anyone in there for many years to drive the company forward.  In short, she wants someone to grow her husband’s 37 year legacy and propel the company forward now that he is gone. 

The owner/seller has 2 great managers, Kit (general manager) and Joe (operations manager) that have been with the company for 20 and 25 years respectively.  They are very well-paid, love their jobs and will stay for many years to come to assist the owner to grow the company. Here is the kicker to ensure that they stay on the help the new owner !!!   The seller has formally agreed to pay each of these managers 5% each of the gross sales price, paid at closing for staying for no less than 18 months after the new owner takes over.

Value my Colorado business.

The seller will stay on for 3-4 months to ensure a smooth and orderly transfer of the entire company’s operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.  However, it must be made clear here that all office and manufacturing operations have been run by 2 key managers that have in their positions for “20 and 25 years respectively”, and love their jobs.  They are both very well-paid, but they want and need someone to step into a “business development” role and be aggressive to cut costs, eliminate waste, raise prices (ASAP), and attempt to grow sales which no one has ever really attempted to do. 

 

What We Do:  We manufacture and sell exceptional retractable awnings, solar shades, custom window well covers, handcrafted steel safety railings, and steel security doors to our Denver customers for the last 37 years.  All of our products are locally manufactured and installed by our in-house crew.  We are the largest independent company of this kind ‘west of the Mississippi’.  We do it all in this area, whereas other companies just provide 1 or more of these services, but not all of them like we do. 

 

Reason for seller:  Sue Mahon is age 72, and after 10 years of owning the company after her husband suffered a stroke 11 years ago, she is now ready to retire.  She knows that being an absentee-owner is never a good idea for a business of this size with the potential it has, in fact it’s a hindrance.  This company needs a more full-time operating owner, she feels.  Another reason for selling now was the recent death of her controller of 20 years.  His (Jim’s) experience and trustworthiness is the reason I could be an absentee owner. 

 

YOU MUST see the 45 minute video interview with both owners in the data room below. 

It is critical to understand that this business has been operated from the beginning (SINCE 1979) by the founder, Richard Mahon.  11 years ago Mr. Mahon suffered a severe stroke and had been incapable of running the business from that point forward.  Up until that point the business enjoyed substantially greater profits and gross sales than it does today.  11 years ago his wife, Sue Mahon (the current owner and seller) grabbed the reins and did the best she could to manage things from that point forward.  However, Sue has always been had been registered nurse by trade and has had no business experience or experience managing people or any other form of business operations.  In fact, the business has been virtually run absentee-owned for the last several years since she has spent a great deal of time in Phoenix with her daughter.  During 2014 and 2015 the seller really disengaged from the business since her husband was terminally ill and ultimately died in 2015.  As mentioned, she went to Phoenix to spend time with her daughter and let the “business run itself”, she mentally and emotionally checked out.  The company was maintained by an office manager running the office, and a production manager running the 20,000 ft.² shop.  However, as most people know, no one cares as much about a business as the owner, and without the owner at the switch, at least part time, things do not run as efficiently as if the owner were watching the place.  This is what we need today and the 2 key managers completely agree.  In fact, as they both state in the video, they strongly seek someone to grab the reins and bring energy, direction and new excitement to the company vision.

It is my professional opinion and the opinion of the owner/seller, Sue, that a new owner can purchase the business and step in to dramatically improve the sales and overall profits of the company going forward.  In short, we need to cut costs where there has been a great deal of waste and dramatically increase sales.  The sales packet and video contains a great detail on how best this can be done.  

Again, the 2016 Cash Flow was over $900,000 on sales of $5,062,906.  Please see the rationale for this estimate in the data room above.

Our Standing With Safety and Operations:  over the past 40 years we have had a few minor OSHA violations, but they are long-since settled out.  In the past 5 years we had just 2 injuries which pushed our “MOD” rate up a bit, but the good news is that they fall off next year (2018) and our insurance premium will fall by about $25,000/year, which falls to the bottom line.  Also, we have had 2 EEOC complaints, but we have won them BOTH. We also had a claim in small claims court long ago that we settled for $500.   Otherwise, the business is in excellent standing with all regulations, employees, customers and suppliers. We have had NO legal battles, just 2 worker injuries, and have absolutely no “ghosts in the closet” whatsoever.  We are financially solid with over almost $1,000,000 in shareholder equity on the balance sheet at the date of closing.  Separately, we have NOT had 1 complaint that we did not fix resolve and we have never failed on a job in any respect.  When something has gone wrong in the past or wasn’t done correctly, we have fixed it on our watch and our dime. 100% of our customers have been completely satisfied in every respect.  

Please email if you have any specific questions, path forward, or have interest in a phone call or face-to-face meeting with the owner/seller. 

Our locations:  (3 locations)   1) Metro Denver: 358 Navajo St. Denver, CO, (sales and manufacturing)    2) 3659 Austin Bluffs, Colorado Springs, (sales office, we lease this space from another landlord.)  3) Highlands Ranch 145 W. County Line Road, Littleton, CO. (sales office, we lease this space from another landlord.)   The main business is operated out of 20,000 square-feet of fully functional space within 2 buildings that the seller owns and pays about $96,000/year in rent to herself.  She is open to lease the space or sell the property for FMV – depending on what the buyer seeks.  The owner/seller

A New Lease to the New Owner:  On May 15, 2017 Cushman and Wakefield Inc. completed a formal valuation on a fair market lease rate and value for the 20,000 SF building etc.  The value for the real estate was between 1.75MM and $1.9MM. Their opinion of fair market value for the lease was between $6.75 and $7.25 per foot.  The seller is open to sell her real estate for $1.9MM, but prefers a lease for no less than 7 years.  She will agree to lease rate of $9000 per month for 2 years, then $10,000 per month for another 2 years, then $11,000 per month for the remaining 3 years.  This is well-below a fair market rent because it $9000 per month that is only $5.40 per foot per month which is well below $7 per SF which is the average stated above.  You can see the document by C & W in the dataroom.

No sales and marketing efforts: The seller has made virtually NO efforts to grow the company in the past and has been handicapped by having NO sales and marketing manager to grow the sales. The seller is 100% confident that a new owner could grow the business substantially within 2-3 years with some level of sales and marketing management.  We have a few salesman, but it is clear that without the leadership of an experienced, sales-oriented person to motivate and push the group, sales will never grow.  This is something we have never had in all our 37 years.  

Written from the seller herself: “Kit (GM) and I are confident that after almost 40 years, we are dominant in the limited, local, retrofit market for the awning and steel products we presently manufacture. 60% of our business is from previous customer and referrals.   Yes, I realize we are complaisant and could grow our margins by raising prices, negotiating with vendors, pushing production, sales training, etc.  I feel we can expand our current, local, retrofit market nicely, but this isn’t really where I see the big growth coming from for a new owner.  I see our company as a base from which to expand into other products, commercial, new construction, etc.  We never bid on any of the invitations for new construction that we get on a regular basis.  Further, we have never prospected any restaurants, offices, or other commercial organizations for solar shades.  We have never approached any new home builders.  

YOU MUST SEE THE VIDEO DETAILING ALL THESE POINTS.  IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS.   

The Big Picture:  The Front Range, Colorado is the fastest growing city in the US.  Denver is going CRAZY!  Simply put, Denver and the entire Front Range of Colorado is nothing short of the fastest-growing areas in the US.  The macro story for construction and overall growth is extraordinary and has been this way for the past 5 decades.  Even during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the US and in the past 3-5 years had exploded forward faster than almost every other major city in the US.  

 

Colorado is the best State in the country to own a business and is the “#1” fastest growing and strongest economies in the United States, per Money.MSN and Business Insider in September 2014 article.  This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in 2015-2017.

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Business For Sale in Denver Colorado:

This is the actual sales packet for:

Rise & Shin, Inc.

Large and Fast-Growing Residential and Commercial Stucco Company.

(Selling for “1 X’s the down money – $1.3-$1.4MM down will cash flow at least that in 2017.)

6145 Broadway St. Ste 211

Denver, CO 80216

 The Sales Price of the company is:

$2,000,000 and the seller is open to carry $600,000 of the sales price to a qualified buyer.

The seller will stay on for 3-4 months to ensure a smooth and orderly transfer of the entire company operations to the new owner

and provide a solid blueprint and assistance for fast growth going forward.

2017 WILL Cash Flow at least $1,300,000 on sales of $4,700,000 – We know 2017 will exceed these figures because we already have $5,363,679 in contracts on the books whereas we only had $2,548,896 contracted at this same time last year.

2016 Cash Flow was $831,102 on sales of $3,314,558

2015 Cash Flow was $500,559 on sales of $2,129,335

 

The owner expects to Cash Flow at least $1,300,000 on $4,700,000 in sales for 2017.

See the 45 minute video interview with both owners in the data room below..

The buyer will receive at closing all assets on the balance sheet and all debts will be paid off.  The assets included in this sale include over $736,697 (AR value on Feb. 25, 2017) in “solid” accounts receivables and another $170,000 in scaffold assets, equipment, tools, office equipment, and current inventory.  The AR is solid, our clients “always” pay.  We have collected over 99.5% of all money that was ever owed to us.  Therefore, the buyer/new owner can be confident that virtually 100% of this $700,000+ in AR WILL BE COLLECTED.

Value my Denver business.

What we do: We are a large and fast-growing Denver-based masonry, stucco and wall-systems company.  We install most-any exterior finishes to residential and commercial homes and buildings, including brick, tile, and stucco.

Our customers: We work for some of the largest customers/general contractors in the west.  These include: Big-O construction, Richmond Homes, Oakwood Homes. Williams Construction, Roche Construction, Apex Builders, and many others.  We have successfully completed and often exceeded expectations on hundreds of jobs throughout the Colorado Front Range.  We have an excellent work history and never left a client unsatisfied.

No sales and marketing efforts: The sellers have made absolutely NO efforts to grow the company in the past and have been handicapped by having NO sales and marketing employees to assist in bringing in new business.  The sellers are 100% confident that a new owner can double the sales and triple the cash flow in 3-4 years with new sales and marketing efforts.   YOU MUST SEE THE 45 MINUTE LONG VIDEO DETAILING ALL THESE POINTS.  IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 3 YEARS OF COMPANY FINANCIALS.

Reason for sale:  The sellers have created/invented a proprietary scaffolding product that they are now seeking a patent on and want to now spend their energy promoting it.  It is their passion to pursue this and other ventures, and need to free-up and resources for this effort.  Also, the sellers have started 2 other businesses related to importing various products in large containers, 1 of which is a highly-profitable scaffolding product.  However, the primary reason the sellers seek to sell the business is that they have taken it as far as they can with their energy, limited working capital, and overall ability to manage a company that has growth this fast.  Basically, they feel like they’re ‘drinking out of the fire hydrant or holding a tiger by the tail’.   They never thought it would get this big; certainly this fast.  They feel they’ve taken it as far as they can and there is another owner out there that is more equipped to take it to the next level which is where the company wants to go.  The business wants to grow, the demand is for growth is clearly there.  Also, their customers want them to take on more work because they have done performed so well in all past jobs.  In fact, at this point they’re actually turning down bid solicitations almost every day; some of which are highly-profitable-marquee jobs.  Many of their loyal customers want them to take on jobs that they simply don’t have the manpower or working capital to float, thus they unfortunately have to take a pass on this work. So of course this is a disappointment to the customers and the suppliers.

It is important to know that this company is only 4 years old and the sellers, Mr. Quinonez and Mr. Grossman, started the company together in their mid-20’s.  It has grown rapidly from about $130,000 the first year, to cash flow $831,102 on sales of $3,314,558 last year (2016).  2017 has started out very strongly with more than 2 X’s the amount of contracted work than they started out in 2016.  It is all but certain that the gross sales and cash flow will be at least 50% greater in 2017 than the strong numbers in 2016.  This will be the case even if they bring in no additional work.  It is only the end of February 2017 and they clearly going to obtain much more work throughout 2016 (likely $2.5-3.5MM more).

Because of their youth, the sellers have had less business experience than other  business owners who may have had many years of managing people and running companies.  This suggests that a new owner who has a more traditional business background and who has run a company, particularly in some area of construction, could bring the company to the next level at even a greater rate going forward.

Limited working capital:  As stated above the buyer will step into over $725,000 in accounts receivables.  This is an enormous amount of working capital for the sellers to leave behind for the benefit of the new owner and for continued growth going forward to finance future work.

It is worth mentioning that historically, the sellers have been strapped for working capital (cash) from the beginning.  Since inception, they have had no money to put into the business and no lines of credit from banks and other forms of traditional lending.  In fact, because of their lack of business history and perhaps perceived risk in the early years, they have been paying exorbitant 18% interest rates to borrow money from an investor.  To this date they are still paying these high interest rates (about $90,000-$100,000/yr. in interest expense) despite the strength of the company’s cash flow and growth etc.

A new owner with a stronger credit history or net worth would clearly be able to establish larger and cheaper working capital from banks, etc.  In short, the company would have invariably grown at a much greater clip had the company not been stymied by capital limitations.  It is clear to the sellers that if they had another $300,000-$400,000 in working capital throughout the past 2-3 years, they would have not only enjoyed much greater purchasing power from suppliers (thus lower material costs), they also would have been able to take on many highly-profitable jobs they had to pass on simply because they didn’t have the money to float the labor and materials.  A new owner can now benefit by obtaining strong credit lines and taking on more work, and bigger jobs that are more profitable because of the scale.  The sellers have gone on record to say that a new owner could gross $10,000,000 or more in sales next year (2018) if they have the energy and working capital.  The sellers are clear that “there is all the work they want out there; work is everywhere”, they claim  We just need to bid it, win it, and finance the work.  Finding work will NOT be the problem.  “It’s a hay-day, especially for a solid and capable company like ours that already has an excellent reputation”, the sellers state.

Bonding:  Larger jobs often require some level of bonding capacity and are typically less intense to compete for because smaller companies simply cannot compete for the work, thus the bid hat is thinner.  The company has been unable to obtain bonding and thus has been locked out of these larger and more profitable jobs with some of the largest customer/contractors in the state.  Given the current financial strength of the company and a stronger financial buyer, the company can now compete for and obtain some of these bigger jobs.

Our customers:  In the past, gross sales have been about 70% residential and 30% commercial work. However, going forward they want to shift their emphasis toward commercial work and their reasons for this are stated in the video enclosed in the sales packet.  In the last few years they are winning some of the largest jobs related to strip malls and other commercial properties and have recently developed strong relationships with some of the bigger commercial contractors in the country.

Workers: During the 9-10 busy months of the year we have about 65 workers in the field which are comprised of 10 to 12 crews, which have about 5 to 6 people per crew. All workers in the field are independent contractors. The reason for using independent contractors vs. employees is simply that we don’t need to employ workers during the slower months of the year and also we can save substantial employee-related expenses (fica/workman’s comp. etc.)   All workers are paid weekly, and this is a major benefit to them since many workers need steady paychecks every week to meet their day-to-day personal needs.  Because we pay our workers every week and we pay a very strong wage compared to our competitors, we are very attractive to work for. We have an excellent name and reputation among our independent contractors, and consequently it would be easy for a new owner to an additional 30 or 40 independent contractors once the new owner wants to grow the business, and will need more labor.

Representations and warranties of the company’s overall standing:  The company is in excellent standing. We have not had 1 complaint that we did not fix and we have never failed on a job in any respect.  When something has gone wrong in the past or wasn’t done correctly, we have fixed it on our watch and our dime. 100% of our customers have been completely satisfied in every respect.  We have had no legal battles or lawsuits or pending violations of any sort. We have only had 1 OSHA violation approximately 3 years ago and that was because a worker did not have a hard hat on.  We have had no Workmen’s Comp. claims and have an excellent safety record.  We take worker safety very seriously and the seller is 100% committed to sign a contract that provides for a solid protections of the buyer in all of these areas.

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Colorado Springs Business For Sale:

This is the actual sales packet for:

 Roofing & Construction Business

and also

 Roofing Company, LLC

Since June 7, 1979

Colorado Springs, CO 80939

 The Sales Price of the company is:

$4,500,000, and the seller is open to carry up to $1,500,000 of the sales price to a qualified buyer.

The seller will stay on for 3-4 months to ensure a smooth and orderly transfer of the entire company operations to the new owner

and provide a solid blueprint and assistance for fast growth going forward.

2016 Cash Flow was $2,080,544 on $8,099,801 in sales.

In just the first 11 weeks of 2017, we have Cash Flowed over $2.2MM on $3.85MM in sales.  (See attached PDF)

 

The owner expects to Cash Flow at the very least $3,000,000 on $11,000,000 in sales for 2017, even though we are pacing much greater figures.  In fact, as of March 23, 2017, the company has $4,078,000 in contracts on the books to start out the year.  They had under $2,000,000 on the books the same time last year.  They are working on another 2 large multi-family commercial projects worth over $1,500,000 as well.

This is a strong leading indicator for the rest of 2017.

2015 Cash Flow was $1,159,750 on $4,725,904 in sales.

The buyer will receive at closing all assets on the balance sheet and all debts will be paid off.  The assets included in this sale include over $600,000 in solid accounts receivables and cash (within both companies) and another $250,000 in trucks, equipment, tools, office equipment, and current inventory.  This totals over $850,000 in assets, at a minimum.

What we do: We are a large and fast-growing Colorado Springs – based commercial and residential roofing and exteriors company.  We are about 95% roofing and 5% siding.

What is my Colorado business worth.

As stated above, the seller has made absolutely NO efforts to grow the company in the past and has been handicapped by having NO sales and marketing employees to assist in bringing in new business.  The sellers are 100% confident that a new owner can double the sales and triple the cash flow in 3-4 years with new sales and marketing efforts.   YOU MUST SEE THE 45 MINUTE LONG VIDEO DETAILING ALL THESE POINTS.  IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS.

One of the most valuable assets included in this sale is the steady and reoccurring revenue associated with the long-standing relationships we hold with property managers and condo associations that use us year-after-year for install and service work for all forms of roofing and exterior needs.  It is important to understand that this is our most profitable work, with 60%-75% gross margins/profits.  A buyer can step in and grow this part of the company dramatically given the steady client base of 45-50 property management companies and condo associations that have relied on us for years.  We have an excellent reputation in this market and a new owner can get out their and leverage what we already have by simply approaching our exciting client base to push for more properties and condo associations within their portfolio. It would be a ‘lay-up’ to double this segment of our revenue.

Residential Roofing:  Your home is your castle. Let us protect your investment by keeping the roof over your head in perfect condition. Our quality products and professional field technicians provide the highest level of service and workmanship.  Holladay Grace is an authorized or preferred contractor for roofing manufacturers including Tamko, GenFlex, Versico, GAF, Owens Corning, and more.

Holladay Grace Roofing is a family-owned business serving the greater Colorado Springs area and Pikes Peak region since 1979. We service and are licensed in El Paso, Teller, Park and Douglas counties.

We specialize in:  Residential roofing, Commercial roofing, Condos & townhomes, Roof replacement, Roof repair, Roof maintenance, Roof inspections, Steep/sloped roofs, Low slope roofs

Whether you are a homeowner in need of residential roofing repairs or roof replacement or a commercial property owner who needs the peace of mind that comes with working with experienced professionals, you need a team you can count on when it comes to roofing, roof repairs, and maintenance.

Our services include:  24-Hour Emergency Roof Repair, Free estimates, Unequaled warranties, we carry workers’ comp and general liability insurance, and we work with all major insurance companies.

The real estate for our office/operation is for lease or sale:  The buyer can either buy or lease the commercial real estate that the company operates out of from the sellers.  The sellers are flexible here.  The real estate was built in 2007 and is an excellent building to operate from.. the property sits on 1.61 acres and the company uses only 8,000 SF of the 14,300 SF of the total building.. the remaining footage is rented out to another tenant who pays a market rent with a long term lease.  The sellers will sell the real estate for $2,200,000 or lease the 8,000 SF on a 7 year lease for $6,700/mo.

Property management and HOA customers:  One of the greatest strengths and most valuable parts of this transaction is the fact that we are not just a traditional roofing company. We have many strong and long-standing relationships with property management companies and homeowner associations (HOAs). These customers represent dozens of communities and hundreds of homes that provide a steady stream of the most highly-profitable income to our company.  In fact, we have several property management communities that provide over $500,000 in revenue per year with gross profits that are incredibly profitable and often exceed 60%, and in some cases 70%.  Most roofing companies strictly concentrate on residential re-roof and hailstorm repair and replacement work with gross profits in the 30% to 40% range. Of course we do a great deal of this type of work as well, but it’s not nearly as profitable as the work that property management and HOA customers provide us.  Moreover, property management and multifamily housing-related customers provide a steady stream of long-standing work to us on an annual basis.  We have a solid base of 40 to 50 long-standing relationships with some of the larger property management companies in the area that have been with us for 15-20 years or more. This reoccurring revenue is very valuable for a new owner of the company to build upon.  We do a wide variety of work (pretty much anything) for these customers including; repair, re-roof, roofing inspections, and 24-hr. emergency service, For the past three years this segment of the market has provided our company with over $2.5 million of net income on sales of over $6 million.

It must be made clear here that we have made no specific efforts to grow this area of the business or made any significant attempts to leverage the relationships we have with existing customers. The new owner should hire one to two sales/business development people to get out there and call our large and loyal client base in an effort to obtain additional communities and properties that are existing customers manage and represent.  This would be the low hanging fruit in the first steps the new owner should pursue.   After that, it would be a great idea to call on the hundreds of property management in multifamily housing related properties that we have had no contact with in the past. We have a strong reputation and history of serving our customers with excellent work and we need to create a simple marketing plan to pursue other companies by leveraging and showcasing the work we have done in the past.  Many years ago we were not at all established in this area of the market, today it would be a layup to push further into this area because of our incredible name in our 30 mile radius.   Other, more traditional roofing-related customers include, commercial and residential contractors, individual homeowners and insurance companies.  We have an excellent work history and never left a client unsatisfied.

Update, 2017 has started out with a BANG – great pipeline!  As of Feb. 27, 2017, the company had started a new $1,200,000 job and as of the following 2 days, is starting a $1,080,000 roofing job.  As stated above, as of Feb. 27, 2017, the company has $4,078,000 in contracts in the pipeline to start out 2017.  In 2016 they has less than $2,000,000 on the books the same time last year (2016).  This is a strong leading indicator for expected gross and profits for 2017.

These are obviously large jobs that would only be trusted to a strong and reputable company.  It took 4 decades to “earn” the right to serve these larger companies.  They do NOT work with just ANY roofing company that comes along.  Newcomers to the roofing industry or companies who have NOT proven themselves, will spend years trying to get into the relationships that we hold with these HOA, property management, and insurance companies.  We have a 40-year solid record of completing quality jobs that almost always exceed the specifications.  Finally, in terms of great reputation, city roofing inspectors love our work. Each job needs to be inspected in the end, and suffice it to say, all city inspectors like and approve our work.

Reason for sale:  There are 2 owners, 1 is full time and the other if part time and has been transitioning into retirement during the past 3-5 years.  The full-time owner is in his mid-40s and has been in the roofing industry since his mid teenage years. Both of them wish to sell the business and move on to something else. They strongly feel that they have had their “feet on the desk” and have not been motivated to grow the business and push it as hard as it should be.  It is very clear to them that someone could come in with a fresh head of steam a new energy and commitment and double, if not triple the sales within the next 3 to 4 years. They just don’t have the drive or passion to do it anymore. However, the demand for the services is extraordinary, and their clients are asking them to do much more work than they’re willing to take on. Several times a week they receive bids solicitations for projects that they don’t even want to pursue.  This is an unfortunate missed opportunity for each year that goes by.  The employees and subcontractors would love to see the business explode going forward the customers feel the same way and of course the suppliers that they buy materials from would love to see the business grow swiftly for the obvious reason.

Over 40 solid and long-standing employees:  (We are all Non-Union.)  Someone once said, you’re as good as your employees.  It took years to assemble the incredible and loyal employees that we have today.  This is the true value of the company.  Without these great field workers and office staff, we would have nothing today; and the owners know this.   One  of the owners works part-time; the other works full time, and the entire operation today “runs like a top” with great key managers and supervisors.  This being the case the new owner does NOT need any specific roofing or construction experience.  However, the new owner should be a high-energy and hands-on person with interest in growing the business.  In addition to these employees, we have another 40-60 subcontractors who perform much of the work.

No sales or marketing efforts in the past:   As can be seen above, we expect to generate at least $3,000,000 in cash flow on $11,000,000 in sales for 2017.  This is incredible knowing we have almost no advertising and marketing budget. “The work just comes to us”, the seller states.  In fact, during the 2-3 month period following a hail storm in any one of our states, we receive between 20-30 call-ins per day, many of which we cannot even respond to because of the flood of calls.  Almost 100% of our sales are from people reaching out to us given our name and reputation.   Having completed over 10,000 roofs in 40 years, our reputation with insurance companies, HOAs and homeowners provide almost all of our new jobs.  In fact, the seller states that about 30%-40% of the roofs we have completed in the recent-past are from homeowners who have used us in the past.

Safety record:  We have the finest safety history possible.  In fact, our insurance MOD-rate is .90.  The lower the better, and anything below a “1 is good.  A .90 MOD-rate means we get a 10% discount on our liability insurance premium since our workman’s comp claims are so few and industry history is excellent.  This speaks volumes about our safety program and the competence of our workers.

Holladay Grace Roofing & Reconstruction is a Platinum Preferred and Master Elite Contractor for Owens Corning and GAF/ ELK which place us in the top 1% of Roofing Contractors Nationwide: We have been one of the largest purchasers of roofing materials along the Front Range of Colorado since 1979 and have grown stronger every year. Holladay Grace does approximately 200-300 new or re-roofs a year with a large concentration on condo, townhome associations and single family homes.  We are without a doubt a true powerhouse with the multi-family housing communities due to our strong connections with the many property management companies and the highest quality of work in the industry.

This has allowed us to build a strong relationships in the community, Pikes Peak Regional Building Department, local business owners, manufacturers and our suppliers giving us a huge advantage in name recognition, job referrals and pricing over are competition. This customer first approach along with the highest quality staff  in the industry has allowed us to remain far more profitable than competitors through good and bad times consistently holding a 20% + net profit on our bottom line. This is something we are very proud of and can say without a doubt, has not duplicated by many in our industry.

Value my Denver business.

While I’m sure it is obvious to you at this point, this allows us to operate from a position of strength. We have been able to “corner “the market with the five main driving forces that allow a roofing contractor to be successful in this industry:

• Customer and Insurance Referrals – A 40 year reputation of doing the highest quality work using the highest quality materials while standing behind our workmanship warranties.
• A relationship with the local building departments that is second to none. This allows us to work closely with them on issues that may arise and minimize future headaches or address any issues before they become a problem.
• Property Management companies have us on their preferred list of reputable service companies with many of them having us as the first referral on their list. Many of these condo and townhome associations have been using us for several years to decades. This means jobs without any other companies bidding the work in certain circumstances.
• A 35+ year relationship with our manufacturers and suppliers that allow us buying power few others enjoy. We are afforded a 5% to 8% discount on roofing materials below our competition with the ability to earn 2% to 3% cash back at the end of the year. We also see a per square discounts ranging from $1.00 to $4.00 dollars per square on certain shingles during different times of the year.  The biggest benefit however comes during the frequent storms we see here along the Front Range.  Hail and wind damage can make getting material for most roofing companies almost impossible during large catastrophes.  This in NOT an issue for us, as the suppliers we work with have always made material available to us due to the long-standing relationships we have with them and the timely payments they receive from us.  We are a priority to several manufacturers and suppliers for these reasons.
• A very solid, strong General Liability and Workman’s Compensation insurance program with a history of very few loses and very competitive mod rate.

The benefit to doing business the way we have done it for 40 years is obvious:

• The ability to keep a solid work force with highly tenured employees that love to work for us.
• Higher retention rate of customers
• Solid reputation with building authorities
• Year-round work during busy or slow times (when no significant hail storms occur.)
• Profit margins that are nothing short of amazing for this industry

While I’m sure you are wondering what I mean by profit margins not common for the industry let me explain.  When you look at our P&L and Balance Sheets you will see an average A/R between $200,000.00 to $800,000.00 depending on work load and time of year with an average A/P between $50,000 and $250,000.00, again, dependent on work load and time of the year.  We maintain a solid amount of cash on hand, between $200,000.00 and $600,000.00.  This gives us a ton of flexibility to be aggressive in attacking work if we need to or in planning for the possibility of a slow year while still maintaining the same profit margins and the strength of this company.

Workers:  During the 9-10 busy months of the year we have about 65 workers in the field which are comprised of 10 to 12 crews, which have about 5 to 6 people per crew. All workers in the field are independent contractors. The reason for using independent contractors vs. employees is simply that we don’t need to employ workers during the slower months of the year and also we can save substantial employee-related expenses (fica/workman’s comp. etc.)   All workers are paid weekly, and this is a major benefit to them since many workers need steady paychecks every week to meet their day-to-day personal needs.  Because we pay our workers every week and we pay a very strong wage compared to our competitors, we are very attractive to work for. We have an excellent name and reputation among our independent contractors, and consequently it would be easy for a new owner to add an additional 30 or 40 independent contractors once the new owner wants to grow the business, and will need more labor.  All workers are paid by “piece work” so that high profit margins are maintained.

Representations and warranties of the company’s overall standing:  The company is in excellent standing. We have not had 1 complaint that we did not fix and we have never failed on a job in any respect.  When something has gone wrong in the past or wasn’t done correctly, we have fixed it on our watch and our dime.  Virtually 100% of our customers have been completely satisfied in every respect.  We have had no legal battles or lawsuits or pending violations of any sort. We have only had 1 OSHA violation approximately 3 years ago and that was because a worker did not have a hard hat on.  We have had only 3 Workmen’s Comp. claims in the past 20 years and have an excellent safety record.  We take worker safety very seriously and the seller is 100% committed to sign a sales contract that provides for a solid protections of the buyer for any actions, work, conduct that occurred prior to closing.

The Front Range, Colorado Springs and Denver, Colorado is the fastest growing area in the US.  Denver is going CRAZY!  Simply put, Denver and the entire Front Range of Colorado is nothing short of the fasted-growing areas in the US.  The macro story for construction and overall growth is extraordinary and has been this way for the past 5 decades.  Ever during the 2008-2012 recession, these Colorado cites fell, but it didn’t fall as hard as most of the US and in the past 3-5 years had exploded forward faster than almost every other major city in the US.

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Business for sale in Henderson Colorado.

This is the actual sales packet for:

P.A Contractors, Inc.

A Minority and Women-Owned Concrete/Flatwork Construction Company

– Since 2003

A True Win/Win Transaction:  This is a very unique transaction as compared to a traditional sale of 100% of the business for a given fixed price. The owner seeks an investor AND operating partner to invest $500,000 into the business to pay down some debts to get the business on a better financial footing.  The owner is an excellent field operations person, but quite honestly, she has made several bad financial, and business management decisions in the past 5 years or so which has created the weak financial position that the company is now in. Simply put, being a minority and women-owned contractor is a “license to steal”.  A contractor who holds the needed and unique credentials and certifications can charge substantially more on bit work than she has been charging historically.  As you will see throughout this write-up and sales packet, she has NOT been charging nearly what she could have, and consequently has NOT been earning the profits she could have.

Today, she seeks a partner to “take over” all business, sales, financial, and office operations, so they can improve company profits and create greater growth.  She wants to relinquish all these aspects of the business to a partner who is more aggressive, business-oriented and capable than she has been.  She is completely committed to this transition as she will run the field operations going forward. A True Win/Win Transaction

What We Do:   (SEE ATTACHED PDF DOCUMENT – PROFILE) Highway and Roadway Concrete Pavement, Curb and Gutter, Sidewalks, Handicap Access Ramps, Concrete Slabs, Parking Lots, Bike and Pedestrian Paths, Bus Pads, Foundations, Earthwork, Concrete Driveway, Concrete Curb Ramps, Remove & Replace Concrete, Concrete Ramps.  We have a powerful combination of human, physical resources, and equipment to handle the largest project while maintaining high quality work, even in the smallest details. We work closely with clients, offering them a history of construction experience and we work as a proven team to produce excellent results at top speed.

This is a large Colorado-based public and private sector Highway and Roadway Concrete Pavement, Curb and Gutter and Sidewalks Contractor.

What We Do: Highway and Roadway Concrete Pavement, Curb and Gutter, Sidewalks, Handicap Access Ramps, Concrete Slabs, Parking Lots, Bike and Pedestrian Paths, Bus Pads, Foundations, Earthwork, Concrete Driveway, Concrete Curb Ramps, Remove & Replace Concrete, Concrete Ramps.  We have a powerful combination of human, physical resources, and equipment to handle the largest project while maintaining high quality work, even in the smallest details. We work closely with clients, offering them a history of construction experience and we work as a proven team to produce excellent results at top speed.

We are a Minority and Women-Owned Concrete/Flatwork Construction Contractor

Simply put, we are a $5MM/Yr. concreate contractor who can triple in size immediately and increase profits substantially.  The seller is very confident of this growth because she is a 100% women AND minority-owned company.  As such, she and the company have a tremendous advantage over a male/non-minority owner.  Minority/ women-owned companies are considered disadvantaged and there are many designations  certifications such as Disadvantaged Business Enterprise (DBE), Small Business Enterprise (SBE), Emerging Small Business (ESB), Minority/ Women Business Enterprise  (M/WBE), and Regional Transportation District – Small Business Enterprise (SBE).  The seller has all of these invaluable certifications which will allow her and her 49% partner/ co-owner will a much higher percentage of jobs that other contractors and in the process submit a 8%-13% higher bid and still win the contract in most cases.  There are NO OTHER WOMEN OR MINORITY CONTRACTORS THAT WE COMPETE AGAINST.  This is a tremendous advantage for success.

Who We Work For:  We provide full site service development throughout the state of Colorado. We have served the greater Denver Metro area as a dependable, professional, on-time, and on-budget concrete contracting service. For over a decade we have successfully developed highways, roads, curb & gutter, and other flatwork with City and County, CDOT, Commercial, Industrial, and private customer’s jobs. Our mission is to meet and exceed our client’s expectations while providing the highest level of service and excellence in the concrete industry.  As one of the concrete construction companies in the greater Denver Metro area, we have the staff, equipment and knowledge to internally complete all facets of concrete construction. We provide all elements necessary to complete your concrete project for concrete paving, curb and gutter, sidewalks and much more.

A True Win/Win Transaction: This is a very unique transaction as compared to a traditional sale of 100% of the business for a given fixed price. The owner is fine to sell 100% of the company and/or stay on for many years to come as she is only 36 years old.  However, as you will read it is likely that a buyer/investor/partner, will seek to NOT buy 100% of the company, but instead, to invest say $300,000 – $400,000 into the business to pay down some debts to get the business on a better financial footing.

This $5MM per year concrete/flat work business has many great things going for it including the following:

– In the recent-past the business grossed over $5,000,000 in sales.  The seller has gone on record to state that she can have 3-4 X’s the work they now have on the books/under contract.  She states that there is all the work she and other concrete contractors want out there. Even for non-women/non-minority contractors, there is more work than we can all handle.  BUT, for a women/minority-owned contractor, we could easily do $20,000,000 in work in 2016 IF WE ONLY HAD THE BONDING CAPACITY AND WORKING CAPTIAL TO FINANCE THE WORK..  It takes money to make money. This is what we don’t have.

– The business has always been 100% owned by a minority women and holds many invaluable certifications/designations that NONE of its competitors hold.  Consequently, the company enjoys tremendous preferential treatment in the competitive bid arena for city, state, and federal public government work.  These certifications/designations include:

• State of Colorado – Disadvantaged Business Enterprise (DBE)
• City and County of Denver – Small Business Enterprise (SBE)
• Emerging Small Business (ESB)
• City and County of Denver – Minority/Women Business  Enterprise (M/WBE)

• Regional Transportation District – Small Business Enterprise (SBE)

– In addition to these coveted designations/certifications, the owner is immediately eligible for the incredible 8(a), WOSB & EDWOSB to secure potentially 10s of millions of dollars in contract work for dozens of defense contractors that work for the army and other military departments.

– It took 12 years to obtain all of these certifications/designations – and again, are ONLY AVAILABLE TO A MINORITY/WOMEN-OWNED BUSINESS.  (Owner must remain at least 51% owner going forward in order to maintain this status.)  Simply put, because of its status this company is likely to win the large-majority of bid work it pursues, but most importantly, it can charge often 5%-10%, or more than the next-nearest competitor and still win the bid.  This is because city, county and state governments MUST provide a minority or women-owned contractor a certain percentage of these contracts in order to secure free federal government grants federal monies.  We are talking about $100s of millions annual budgetary dollars that are given to Colorado each year IF city, county and state government work is given to minority/women-owned contractors.  In short, the owner has the deck stacked in her favor as it related to winning practically all the work she can perform and finance.  Again, our company can be the highest bid in the “bid-hat” by a margin of 10% or more in some cases, and still win the contract…

– We provide full site service development throughout the state of Colorado. Since 2003, we have served the greater Denver Metro area as a dependable and professional on-time and on-budget concrete contracting service and has successfully done business with City and County, CDOT, Commercial, Industrial and private customer’s jobs. During this time we have successfully developed highways, roads, curb and gutter, industrial and commercial sites, local, county and state projects for both private and public customers. Our mission is to meet and exceed our client’s expectations while providing the highest level of service and excellence in the concrete industry.

– We hold a 12 year history of flawless performance and the cleanest reputation in concrete construction.  We have completed hundreds of jobs with a stellar outcome, never left a job incomplete and have always achieved 100% client satisfaction.  We have a perfect safety record with OSHA violations and no Workmen’s Comp. or insurance claims in the past.

– The business already has over $6 million in contracts to perform in the immediate future.

– We have $468,000 worth of very efficient and top-of-the-line equipment to perform for construction projects.

Well…. of course all of this sounds great… The seller is only 36 years old and loves what she does… Therefore, why would she be selling, especially given the tremendous advantage in bidding government work?

Please email below or call Paul at 303-382-1900 for a comprehensive sales packet with the past 3 years of financials and tax returns, and a detailed 40 minutes video interview with the owner and a full site walk-through. We can immediately email the sales packet.

Truth be told, the business has a weak balance sheet with low working capital.  Simply put, for a variety of reasons (that we will cover in this write up) the seller owes approximately $120,000 in past due payroll taxes. Being behind on payroll taxes has eliminated the seller’s ability to obtain credit lines from banks and most importantly she can no longer bond big jobs, which is where the higher-margin/profitable work is.  Being a minority women in the concrete construction business, the seller could bid work at a substantial premium and still be likely to win the bid vs. a non-minority male-owner company competing for the same work. (We will cover why this is the case below.)

Further, a quick look at a recent balance sheet would show that there is not enough working capital to finance these larger jobs.  As stated, with a weak balance sheet you cannot obtain bonding for the larger jobs in the 1- $5 million range, which are far more profitable and less competitive. Colorado, and the entire Rocky Mountain Region is currently experiencing explosive growth in all sectors of its economy, but construction for public and private sector construction has been nothing short of the incredible lately.  There are hundreds of large concrete and flat work projects in every area of the state and all sectors.  If we had more working capital and were able to bond these larger jobs, the seller is 100% confident that she could obtain $10-$15 million of highly-profitable work in the next 12 months  But again, she simply doesn’t have to working capital to pay off the back payroll taxes due and have another $200,000-400,0000 to finance the work she can win due to het status.

The Deal:  The seller seeks a win-win partnership/relationship whereby she can obtain the working capital to pay off about $130,00 in back payroll taxes, as well as another $200,000 – $400,000 in new working capital to strengthen the company balance sheet so she can once again hold the credit-worthiness to re-obtain her bonding status the pursue and perform bigger jobs again. She also seeks a business partner who can work in concert with her to get the company back in shape and drive it forward.  It has become clear to the seller, that she has a wealth of knowledge in the concrete/ flatwork industry itself, however, she realizes she is NOT the best “business person” when it comes to managing finances, collecting money and bidding work more aggressively, i.e., with greater profits.  This is a $5MM/yr. company that can easily grow to $15MM within 12-18 months, with the right working capital.  However, even with a stronger balance sheet, it is too much for her to manage the operations and field and ALSO the business, sales, marketing, HR, collections, and business development.   She admits she has no formal business background to run the business-related aspects of a company this size and needs help going forward to get the business on a more profitable footing. In summary, she seeks  working capital and working partner that can complement the areas in which she is weak.

The reason the balance sheet is weak and the business has NOT been as profitable as it should have: As a business broker who has reviewed this business, it is clear to me that the seller has simply NOT been charging enough (bidding the work with enough profit in it) as she should or can.  Being a minority/women-owner contractor, the seller can likely bid work much more aggressively and still get it, thus making more jobs.  As they say, “ it costs nothing to raise your prices”.  For instance, in 2013 she grossed over $5MM in sales, but netter $23,000.  Denver/ Front Range and the entire state of Colorado is going through an explosive construction boon; most-all contraction and construction-related companies are making money hand-over-fist, especially during the past 4-5

years.  Things are going absolutely nuts out West.  The seller is a “very nice, but is not an aggressive” business” person, to put it mildly.

As stated above, having all of the women/minority designations possible, she could charge perhaps 10%-15% more per job and still be confident to get it.  During the past 5-6 years she has been forfeiting substantial profits that should be falling to the bottom line. This is another reason she needs a partner – not only for the capital infusion, but more importantly to take over the “business/finance/sales and marketing aspects of the company.

The seller does NOT want to sell the company, but needs an aggressive  business partner ASAP.  The seller is only 36 years old, absolutely loves the industry, and has a wealth of knowledge on how to run jobs, runs crews, and how to get work from city, county and state governments as well as private sector work.  She states, “everyone wants us to do work for them”, but we need someone to step-in and take control of all aspects of the “business” so then she can cover the field operations and procuring work due to her and the company’s excellent reputation for high-quality work.

Safety and Training:  Our safety program is a high priority for management and field employees. The mission of our safety program is to ensure that workers at all levels are properly trained in the safest ways to perform their jobs. Our commitment to safety is demonstrated by our commitment to on-going training, a full-time safety direct and quarterly management meetings that stress jobsite safety.  We work closely with our insurance risk managers to complete job site safety audits and evaluations on a regular basis. We maintain a strong focus on safety in every task we perform and this has become an important element that sets us apart from our competition. We provide training for all levels of personnel to meet and exceed OSHA requirements. This begins with our new hire orientation; which involves safety videos, review of the safety manual, and on the job safety training. We require a high level of safety training for all field supervision and provide the tools necessary to complete the jobs safely with the emphasis of preventing accidents and ensuring a safe working environment for all employees.

Organization:  One of the key elements to the success of the company is strong organization. The company’s organization is built upon the owner, which happens to be the starting component that forms the company’s organizational structure. It is through this structure that  we are able to maintain quality service to their clients. The company owner is responsible for overall supervision and direction of the company in all phases of operation. The company takes pride in the work it performs and the clients take pride in the product they receive. This type of interaction allows the firm to build quality relationships with their clients. These relationships help the company maintain steady work and gain future clients.

Please email below or call Paul at 303-382-1900 for a comprehensive sales packet with the past 3 years of financials and tax returns, and a detailed 40 minutes video interview with the owner and a full site walk-through. We can immediately email the sales packet.