Growing And Profitable Colorado Roofing Company For Sale

Business description

0 to $2.5MM in 3 1/2 years and growing. 10% + net profit and no debt. We have a very effective way to market and grow our company. We have 7 real estate agents, appraisers, and adjustors that refer work to us and we are continuing to add to our referral network. We are also approved and a part of 3 groups that send insurance work to us representing most of the big insurers in our Area. Our model is effective in Colorado for getting new work. We entered the roofing market 4 years ago without any connections and have literally grown our business from $0 to over $2.6MM in revenue very quickly. We are established with an impeccable reputation. We are recession proof. Throughout the past 4 years we have grown dramatically. We also have added several insurance company referral relationships that send us work in the winter when roofing slows down. We are a preferred contractor with ......... who represents Allstate, American Family, Farmers, Armed Forces, etc and sends us various types of claims that require our services. We are also a preferred provider for ........who is another 3rd party that refers water mitigation and water damage claims for us to repair. ......... is still another that we have preferred status with and refers roofing work to us from Allstate roofing insurance claims being filed. This is a very profitable way to grow our business because we do not have to maintain an expensive sales force. We close over 75% of those referrals. We are approved and in queue for .........who refers USAA and Nationwide which could double our business alone within a short period of time. We have a trademarked name and strong brand in our market. The seller is fully committed to sell the Assets of the business and will agree to full Reps and Warrantees to a solid legal and business standing, no ghosts in the closet. We have a 25% to 32% Gross Profit margin which is because of our marketing and supply ordering strategy. The average Gross Profit in the industry is 15% - 20%. 2012 sales are expected to hit $2.8MM- $3.2MM as more 3rd party insurance referral companies approve us and set us up in their systems. We are also increasingly becoming a known brand in Colorado also. ……….. is trademark protected. Keep in mind Colorado and Colorado Springs are growing and healthy economies compared to the majority of the Country right now. Roofs are replaced every 7 to 10 years which is more often in Colorado that any other contiguous state. We have extreme freezing and thawing, strong continuous winds, and more importantly hail storms. Last year we had a hail storm that increased our revenues dramatically in July, August, and September which makes the continued fast grow and diversification in 2011 not look as impressive as it should. Hail storms are unpredictable but history shows we get some every year but big ones every 3 years on average. Big hail storms can bring in $1MM plus in business and keep us busy for 6 months. Since 2008 we have completed hundreds of new roofs, insurance mitigation jobs, etc. and have never had a complaint. We are A rated with the BBB with no complaints. We have a 5 star rating through superpages.com which is determined by customer feedback. We have a perfect track record. We also have a stellar worker’s safety history without one claim ever!!. We have the lowest insurance and workman’s’ comp rates available due to our “perfect” safety record. We install; asphalt, composition shakes, Cedar Shakes, Concrete and Clay, tile roofing, stone coated steel, Standing Seam Metal, metal shingle and other metal roofing products. We can replace and install any materials. We are the, “can do it people”. We use only the finest materials and have a great relationship with our vendors including the rights to use the pink panther logo representing Owen Corning which supplies roofing and insulation among other items that we use. We have strong vendor and supplier relationships that have taken years to develop. We enjoy the lowest costs, best service and highest quality products from our diversified group of suppliers. We are experts in ventilation, which our customers find value in. This prevents pre-mature aging, rotting, warping, cracking, and mildew. We are high quality, high service and high margin. The business has 5 long-standing employees that have specific jobs but are all capable of running everything. We also have well trained subs whom are 100% loyal to us. We “inspect” our own installations, which is rare in our industry. The seller will stay on for a negotiated amount of time to ensure a comfortable transition of employee, vendor, and customer relationships. Again the seller is carrying $300K of the gross sales price and has a tremendous commitment and financial interest to ensure a smooth transition. The seller has a wealth of knowledge and many innovative ideas to grow the business. In short, he is committed to help the new owner take the business to the next level. The new owner will step into very strong reoccurring cash flow from solid relationships with individuals and insurance companies that send millions in work to them every year. We have the finest reputation in the area. No legal battles, with 100% customer satisfaction and strong brand recognition. The lease is below market with a low maintenance landlord who will let the new buyer either renew annually or commit to something long term. The current rent is $2500 per month for 4000 square feet of updated usable space with 2 parcels of land included that we could use if we need to.

Property information

Real Estate:

Lease

Lease terms:

$2500 with annual renewal for 4000 square feet.

Leasehold rent:

$30,000 per annum

Location:

Updated, central location, efficient building with great highway access. The lease is below market with a low maintenance landlord who will let the new buyer either renew annually or commit to something long term. The current rent is $2500 per month for 4000 square feet of updated usable space with 2 parcels of land included that we could use if we need to.

Business Operation

Expansion potential:

0 to $2.5MM in 3 1/2 years and growing. 10% net profit and no debt. "We have a very effective way to market and grow our company. We have 7 real estate agents, appraisers, and adjustors that refer work to us and we are continuing to add to our referral network. We are also approved and a part of 3 groups that send insurance work to us representing most of the big insurers in our Area. Our model is effective in Colorado for getting new work. We are established with an impeccable reputation. We are recession proof. Throughout the past 4 years we have grown dramatically. We also have added several insurance company referral relationships that send us work in the winter when roofing slows down. We are a preferred contractor with ......... who represents Allstate, American Family, Farmers, Armed Forces, etc and sends us various types of claims that require our services. We are also a preferred provider for ........who is another 3rd party that refers water mitigation and water damage claims for us to repair. ......... is still another that we have preferred status with and refers roofing work to us from Allstate roofing insurance claims being filed. This is a very profitable way to grow our business because we do not have to maintain an expensive sales force. We close over 75% of those referrals. We are approved and in queue for .........who refers USAA and Nationwide which could double our business alone within a short period of time. We have a trademarked name and strong brand in our market."

Reasons for selling:

Owner joining family business

Trading hours:

Regular

Years established:

4

Other information

Support & training:

The seller will stay on for a negotiated amount of time to ensure a comfortable transition of employee, vendor, and customer relationships. Again the seller is carrying $300K of the gross sales price and has a tremendous commitment and financial interest to ensure a smooth transition. The seller has a wealth of knowledge and many innovative ideas to grow the business. In short, he is committed to help the new owner take the business to the next level.

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Seller will carry over 50% of the sales price.

Furniture / Fixtures value:

$124,000 (included in the asking price)

Inventory / Stock value:

$12,000 (included in the asking price)