Commercial Fence Company For Sale

Business description

Established in 1993, this well-established commercial fence company has maintained strong profitability and high growth through its emphasis on customer service and quality control. With sales of just under $4 million and cash flow approaching $900K, this company has a broad base of clients and is poised to take off. Unlike its competitors that sub out most of their work, most of this company's work is perfomed with its own employees - and the customers appreciate the difference. 50% of its busines is from existing customers and another 20% is referred by those customers. Only 30% is new business. The company has multi-year contracts with counties and government entities that account for about 35% of revenues. In descending order of importance, revnues are derived from the following type of sales: Highway Fencing; Recreational Fencing; Commercial Fencing; Safety Fencing; Hi-security Fencing; Repairs. The company's experienced employees are able to handle all aspects of the business, including field supervision as well as creating estimates and proposals. The current ownership has intentionally put a brake on growth. Adding an additional estimator/salesperson (they only have one) could easily result in a 50% increase in commercial business. Management believes that the security fencing business(where there is little competition) could also be expanded dramatically. Other avenues of growth are geographic expansion, entering the residential market and selling fencing suppllies to homeowners and other fence companies. The $2.7 million price includes $500K in net A/R as well as $350K of inventory.

Property information

Real Estate:

Lease

Lease terms:

$3,500/mth

Location:

The company operates out of a approximately 1.6 acre fenced yard with an office trailer convenient to major highways. The yard is available to rent with an option to purchase. The company's 11 vehicles and other equipment all transfer free and clear.

Other information

Expansion potential:

The current ownership has intentionally put a brake on growth. Adding an additional estimator/salesperson (they only have one) could easily result in a 50% increase in commercial business. Management believes that the security fencing business(where there is little competition) could also be expanded dramatically. Other avenues of growth are geographic expansion, entering the residential market and selling fencing suppllies to homeowners and other fence companies.

Competition / Market:

This company is in an excellent competitive position. Management believes that there is widespread dissatisaction with the industry leader due to price and quality control issues, and that this company's reputation for fair prices, excellent service and high quality gives it a decisive edge in the marketplace.

Support & training:

Seller is willing to work for the buyer for up to one year.

Reasons for selling:

Retirement

Financing available:

Financing is available for qualified buyers.

Inventory / Stock value:

$350,000

Contact the seller