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Company is a 48 year old well-established, highly rated fabricator and installer of seamless gutters serving residential customers, builders and roofers, primarily in Fort Worth, Dallas and surrounding areas. Rain gutters and downspouts protect buildings, foundations and landscaping from water damage. Seamless aluminum gutters make up most of the market. The company primarily installs 5” and 6” aluminum K-style gutters plus highly profitable half-round gutters. (5” K-style gutters are the typical standard gutter found on a home; 6” are usually installed on larger roofs.) The company also installs leaf guards and performs repairs and maintenance of existing gutter systems.
The company is a profitable business with strong growth potential. The business has a LONG history of sales and profitability. Due to a nationwide material shortage, backlog is approximately 11 weeks (estimated at $60k and 60-80 presold jobs). 2021 YTD sales are down due to a combination of labor and material shortage (plus the weather effects of February Texas “Snowmageddon” and rain season). The seller states that the business has excellent matching books & records and that the seller can prove all sales, expenses and income.
The owner works approximately 20-25 hours per week and feels that a major advantage over competitors is the seniority of the employees. The 2 lead employees average approximately 26+ years seniority, are provided healthcare/401k and are paid via W2 reported wages. The crews are professional and are a major asset to the company. Customers are happy with the service and committed to using the company. The owner can be replaced by a hard-working owner who is dedicated to the company.
The company receives repeat business and referrals from an estimated 50+ contractors and 20,000+ estimated installed base of customers. Additionally, leads are generated from signage on their trucks and the company website. The owner feels that the business could grow faster by adding a salesperson calling on builders and contractors.
The owner estimates that seamless gutters are 90-95% of sales and leaf guards 5-10%. The typical job takes approximately 2-3 hours to install and is approximately $900-1,000 +/-. The owner estimates that the 2020 customer base was approximately 21% roofers, 12% home builders/remodelers and 67% retail residential. The mix varies; for instance, roofers will generate more jobs during hailstorm years. The number of customers varies per year and was ~330 in 2020 with approximately 466 jobs. The customer base is diversified with the largest customer (roofer) estimated at 13.1% of total sales (varies by year) and the top 10 customers typically generating approximately 31.7% of total sales. The seller estimates that jobs are Roughly located ~70% Tarrant County and ~30% all other counties.
The asking price for the assets of the business is $175,000 All cash, or $250,000 with $125,000 down and $100,000 seller financing to a qualified buyer (approved by the seller) for 5 years at 6% (monthly payments of approximately $2,416.60). All financing is to be personally guaranteed. Seller prefers to sell for all-cash. The assets include inventory at cost of $5,000, Accounts Receivables valued at $5,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $50,000. The price will be adjusted for actual inventory, work in process (WIP) and accounts receivables as of the sale date.
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The current monthly base rate is $3,500.00. Security deposit is approximately $3,500.00. Seller believes that landlord is willing to offer a lease assignment to a qualified purchaser.
The business occupies approximately 6,300+/- SF building with excess space. The building was specifically built for use as a trade construction business. The layout consists of parking, storage, warehouse, mezzanine storage, restrooms, offices, kitchen, fenced exterior parking/storage area and parking. The current monthly base rate is $3,500.00. Security deposit is approximately $3,500.00. Seller believes that landlord is willing to offer a lease assignment to a qualified purchaser. The business uses approximately 30% of the space with significant room for expansion.
The seller has used quality and reliable installation, great customer service, word of mouth and repeat/referral customers to build the business. The company receives repeat business and referrals from an estimated 40+ contractors and 20,000+ estimated installed base of customers. Additionally, leads are generated from signage on their trucks and the company website. The owner feels that the business could grow faster by adding a salesperson calling on builders and contractors.
Warranty service calls are rare due to their industry-superior installation methods, and, in fact, the company has had many repeat and referral customers for 25+ years. Estimates are primarily completed by a part-time employee, who is also an installer helper and does other minor jobs.
A new, energetic owner can further increase sales & profits in many ways: 1) Diligently sourcing materials for sold jobs from the 3 primary gutter supply houses: Spectra Metal Sales, ABC Supply, Senox Corp, 2) Add a salesperson to call on roofers, builders and renovation contractors. Seller feels that many more can be acquired if pursued, 3) Implement 3% convenience fee for customers wanting to pay by credit card, 4) Use lawn signs on installations for drive-by traffic and neighbor referrals, 5) Consider adding a new crew to prepare for continued growth, 6) Use technology to simplify estimating, scheduling process, 7) Consider adding complementary products such as underground drain systems, facia/soffit wood replacement, painting, windows, window screens, solar screens, shutters, vinyl siding, soffit, garage door repairs, Christmas light installation, …, 8) Offer 5” straight face gutters as a PREMIUM priced gutter, 9) Full-time owner operation, 10) Have crew leader contact 6-8 neighboring homes when starting a job. Explain that crew is working in area and provide a business card for any issues or gutter needs., 11) Offer gutter maintenance & clean out service – charge more if heavily treed area
The business attracts customers from the Dallas Fort Worth Metroplex and surrounding areas (but focuses on Fort Worth and surrounding area). The owner feels that the industry is very competitive. Most companies have 1 to 2 crews (2 to 6 employees). Despite the presence of competitors, the business has continued to thrive and can further grow with marketing and adding installation crews.
Ready for new venture
Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreed compensation for a finite period.
Price $175,000 All-cash or $250,000 with $125k down and $125k Seller-financing
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