New Business for Sale in Colorado by Business Broker Paul Olsen:
30 Yr. Old Comm./Resid. HVAC & Air Duct Cleaning Service Business
Sales price $3,000,000, seller will carry up to $1,000,000 for a qualified buyer.
Since 1989 – 30 Years.
3970 South Decatur St. Englewood, CO 80110
We are the largest Commercial and Residential HVAC & Air Duct Cleaning Service business in the entire 8-state rocky mtn. region. We are clearly the most profitable and have the finest state-of-the-art vacuum trucks and equipment in the US market.
2018 Cash Flow was $1,156,770 on sales of $2,976,115
This business will qualify for an SBA loan, but the buyer must have at least $800,000 of their OWN liquid funds to put down.
Disclosure: By receiving this sales packet, you formerly agree that any information provided on this business is sensitive and confidential, and that its disclosure to others may be damaging to the business and its owner, and that you will personally be responsible for all damages awarded to the business owner. Please do NOT call the company office, only call the broker below, Paul Olsen. You agree not to circumvent or interfere with Broker’s contract or relationship with his client (business owner/seller), including the contracted Broker commission due to CBG, LLC. If you in any way interfere with Broker’s contract, you understand you will be individually liable to the Broker for full payment of Broker’s contracted commission, including all costs of collection including attorney’s fees and costs.
The buyer gets over $1,825,000 in total assets debt free at the closing including: about $1,430,700 in hard assets, $50,000 in current inventory, about $225,000 in solid accounts receivables and $100,000 in cash left on the balance sheet. Again, the business transfers Completely Debt Free.
2018 Cash Flow was $1,156,770 on sales of $2,976,115
2017 Cash Flow was $953,490 on sales of $2,830,406
2016 Cash Flow was $1,043,241 on sales of $3,018,305
The seller will stay on for 3-4 months (or however long the buyer requires within reason) 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.
Critical Points to Understand:
We have completed between 400,000 – 500,000 commercial and residential air duct and HVAC cleaning jobs for over 200,000 customers in 30 years. Some companies have a 5-star google review rating, BUT NOT WITH OVER 500 REVIEWS. (That means that over 99.7% of those 500 people had to give us 5-stars.) That says is all about our reputation and work quality!!!
We have over 200,000 individual customers and have completed between 400,000 – 500,000 commercial and residential air duct and HVAC cleaning jobs over 30 years. We are the largest of our kind in the entire 8-state rocky mountain region with the state of the art, cutting edge equipment that no one we know of has.
99.9% of 509 Google reviews are 5-star. Have you ever heard of a company with 99.9% 5-star reviews out of 509 customers. That is like going through 12 years of school and 4 years of college with straight A+’s and just 1 “B” all those years.
Finest Reputation: We have the finest reputation and strongest working relationship with all contractors, and customers. In fact, we have a BBB rating of “A+” and have NEVER has 1 complaint filed.
We have a patent and trademark on the Vac name. Only 25-30 years ago Vac was simply the name of our company, today it is a “verb”, the seller insists. Customers regularly state, even to our competitors, that they want their ducts and HVAC units “Vac’d“- they no longer say they want these units “serviced or cleaned”. In short, our name and logo are now the industry ‘verb’ to describe what our customers want done.
Our Long-Standing Steady Customers Are: South Metro Fire District,Four Seasons Resorts, Vail Health Clubs and Resorts, Costco Wholesale, US Air Force Academy, Murphy and Company (Large Mechanical Contractor- Multiple projects) Liberty Media Corporation, Acuity Insurance Claims, Easter Owens Corp, ProCraft Mechanical ( Large Mechanical Contractor, multiple projects), University of Denver (Multiple buildings multiple projects), ( Multiple fires stations and public buildings, Master Magnetics Manufacturing, Littleton Academy, REI, Cherry Creek Country Club, Das Bog Coffee, Ryerson Electric. All these city municipalities: City of Colorado Springs, Englewood, Denver, Lakewood, Frisco, Wheatridge, Littleton, Aurora, Thornton, Fort Collins, Boulder Valley School District, Boulder Valley School District, over 30 Colorado counties, over 30 school districts, dozens of hospitals, Dish Network, RK Mechanical (Huge, Huge Mechanical Contractor, Multiple Projects), Rose Medical Center and Hospital, USAA, Safeway, Humane Society, THE EPA, and many Colorado air force bases. There are over 500 additional Commercial customers, and Thousands of Residential Customers in just the last 2 years.
Selling Real Estate and Business Together:
To be clear the seller is seeking to sell the business as well as the real estate in the same transaction or on the same day as two separate transactions. He is not interested in being a landlord and keeping the real estate, so he requires that both be sold together. The business is being sold for $3,000,000 (The seller will carry up to $1,000,000 of this.)
The real estate is being sold for another $1,800,000. As a side note the seller paid $1,350,000 more than 20 years ago and has done much construction and many upgrades to the property and building. In short, it should be worth much more than the $1,800,000 sales price that he seeks. Total sales price for the business and real estate is $4,800,000, with at least $3,800,000 down at closing.
Our customized cutting edge with state-of-the-art equipment is our hook and key to everything: So, the question is how can we say were the best company in the region for commercial and residential area duck and HVAC cleaning? Who’s to say who is the best company or has the best equipment? It’s this simple, Vac has 15 operating vehicles that simply have the best working equipment in the industry with the strongest sucking power. Cleaning and vacuuming are all about the power of the equipment that is used to suck the dirt and debris out of these our customers’ buildings. It would follow reason that whosever equipment has the strongest sucking and vacuum power with the greatest reach can do the most comprehensive and thorough job of cleaning… All of our competitors have “off-the-shelf trucks to do their fieldwork. Not Vac; for more than 20 years now the company has been able to customize and build the finest trucks and field equipment in the industry, period. This is our hook, and this is everything. The customers shown above know the difference after years of comparing us to the competition, we get the job done better than anyone and they’re willing to pay a premium for it. The level of cleaning and sanitary conditions that our equipment can achieve is critical, especially to some of the most sterile environments such as hospitals and medical centers. Even in the case of the Ritz Carlton hotel let me have a $50,000 HVAC unit that is hard to reach on the roof of the building as well as half a mile of the units that snake through a fancy hotel. Customers like this and the ones mentioned above will pay a significant premium to achieve the highest level of cleanliness which is very clear in the profits you can see in our income statements that you can review in the data room. Nobody in our industry can get more than 33% “net cash flow” on their gross sales like we can. As you will see below there is a great opportunity to double the sales which would more than triple the cash flow because as your sales increases all you need is a few more trucks and a few more employees, all of the overhead is covered at the first $2-$3 million.
The seller will stay on for many years to come to keep the fleet on the cutting edge: The next question would be is how can the new owner be certain that the company will be able to keep up with keeping the fleet of trucks on the cutting edge with state-of-the-art equipment when the owner sells, especially if the owner has played a role in procuring this equipment and designing it? Simply put, although the seller wants to sell and spend more time at home, he very much desires to stay on as a consultant for many years to come to help design and keep the fleet growing for the new owner. The owner loves this aspect of the business and really enjoys buying and advancing the equipment. He just doesn’t care to manage the business in people any longer since he is ready to retire from this part of the business.
A New Owner Can Double the Sales in 2-3 Years, Latest update: The biggest asset being sold as part of this transaction is not the $1.7 million in real estate, nor the $250,000 in accounts receivable, nor the $1.5 million of equipment; it is not even the incredible brand that Vac holds today, or the 510 5-star Google reviews… The biggest asset being sold here is worth millions and millions of dollars to the new owner, and is actually an intangible asset. It is the simple fact that this company has a comprehensive database of over 68,000 documented commercial (and a small % of residential) customers that we have done work for in the past. (See customer list below.) However, it is critical to understand that at NO POINT in the past has the owner made any attempt to reach out to these existing customers through a phone call or email to get “more work” from them. Stated differently, the seller is emphatic that a new owner could hire a salesperson to do nothing but call these 68,000 documented happy and satisfied customers from the jobs completed in the past in an effort to get more work or set up some sort of annual service agreement.
We know that all our customers are happy because of surveys and that 100% of all Google reviews have been 5-star/A+. If 100% of the customers are more than satisfied with the work completed in the past a new owner can assume that by calling on this comprehensive database that they can drum up significant additional work by proactively reaching out to them. The seller has gone on record to state that he has not made any attempt to reach out to happy existing customers in the past. We have already made the point that we have the highest quality service and effectiveness for cleaning ducts and HVAC better than anybody in the industry. A new owner can hire 1-2 business development people to simply reach out to say 200 existing customers per week, and this would generate an enormous amount of additional work.
To summarize this point, the seller strongly feels that if a purchaser closed on the business in the 3-4 months of 2019, they could increase sales to about $4M in 2019 and absolutely no less than $5 million in 2020. “This would be a layup because we have never called on this database or taking advantage of the great work we completed for these long-standing customers”, he insists. In summary, this is the biggest opportunity in the biggest asset being sold as part of this transaction. Further, the seller insists that he would not need any more equipment (trucks) to handle the additional sales, we would just push the existing equipment harder (use it more, and other shifts etc.)
We have a good deal of steady recurring work. For instance, most-all commercial jobs range from $10,000 – $100,000 or more in revenue. But we have learned that sometimes getting companies or government entities to approve work “over $10,000” can be harder to get approval for, but under $10,000 companies have immediate budget discretion for. This being the case, we simply do many “phases” of a given project, each for say $9,900, therefore, a $100,000 project can be done over say 12 months of monthly service work. The approach opens up a ton of ‘recurring revenue’ work that would otherwise be difficult to get budgeted.
We Are Completely Recession Proof: You Have to Have Commercial HVAC and Ducts cleaned out at a certain frequency. We are in the “ounce of prevention is worth a pound of cure business”. If you don’t properly service these systems, they will clog up a break down or need to be replaced – it’s that simple.
We have no sales reps or any outbound marketing efforts, just radio and small internet marketing. It is the seller’s opinion that a wise and able person can come in here and double the revenue and triple the cash flow by hiring 1 salesperson in that can get out in the field and call on existing and new customers to bring in more work. During the past 30 years the work has “just come to us with no sales and marketing efforts”, says the owner. In fact, we have completed over 400,000-500,000 jobs in our history strictly through word-of-mouth and having the same customers call us back over and over without putting it out to bid. In fact, our website isn’t what it should be and we have no web-presence on social media at all. The point is that we have done very well in gaining trust and building a name without any professional branding etc. A business person could come in and professionally brand us to bring the company to the next level. Final point, about 90% of our sales is from just the Denver area, a new owner could grow the business swiftly by doing work outside of the 10-mile Denver radius, such as Fort Collins and Colorado Springs etc.
Other Revenue Sources: In addition to being able to grow the core business of servicing and cleaning commercial and residential HVAC units and ductwork, there are a wide variety of highly profitable tangential services that the new owner can and should pursue immediately. For instance, there are tens of thousands of restaurants in a 10-mile radius of Denver all of which have a kitchen and all kitchens have hoods above the grill. By law these hoods, connecting ductwork and exhaust systems need to be cleaned at a certain frequency or else grease builds up and can cause a fire. Similarly, hospitals, manufacturing facilities that have hoods and exhaust systems need to be cleaned all the time by local code and other ordinances. We have never even approached this market and the work is extremely profitable, and the best part is that this work needs to be done at night when there are no customers or workers around. This allows our equipment to be used (for another shift) when it is normally dormant at night because it is used primarily in the day for our main business. As they say, “your equipment is not making money if it’s sitting in the shop “. The demand for this service is very high (recession proof) and as stated above our equipment is the best in the industry and has the strongest sucking and cleaning power, therefore, we would be able to charge a premium to get the toughest jobs done right where other companies can’t do nearly as good a job.
The company cash-flowed over $1,156,000 in 2018 and the owner has not lifted a finger to get out there and bring sales to the company. Again, we have never had a single salesperson. This strongly suggests that the new owner can get sales to grow swiftly with a sales rep to call on existing customers to get more work from companies that don’t currently use us.
The seller is emphatic that a new owner could “easily” double the sales and cash flow within 3-5 years by just taking our extensive long-standing customer list and asking to Vac other facilities owned by these steady customers. It is an absolute “hay day” in the Front Range and the entire Rocky Mountain Region. YOU MUST SEE THE 45-MINUTE-LONG VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 4 YEARS OF COMPANY FINANCIALS.
Vac Mission Statement:
Vac’s mission is to provide the most thorough, effective and professional HVAC cleaning and maintenance services available from anyone – anywhere. We shall achieve our mission by employing and training people who take pride in being the best, by treating our customers and their property with respect, and by always striving to exceed our customers’ expectations.
You Will Need Little Working Capital: Seller is leaving between $200,000 -$250,000 in accounts receivables and another 50,000 cash in the business for the buyer. The new owner will need little working capital to take over and grow the company starting day-1 simply because the seller is leaving much behind. Normally, when someone buys a company, they need to take out a $200,000 line of credit or have $200k-$300k cash of their own available to grow the company right out of the gate. Not the case here because, again, the seller is leaving this level of working capital and NO DEBTS at all.
There Are No Negative Disclosable Items: The company is in excellent standing. There are “no ghosts in this closet”! As stated above, after completing over 400,000 jobs we have NOT had 1 complaint for unsatisfactory work that we did not immediately fix on our watch and our dime, we have never failed on a job or delayed a restaurant’s construction opening. We have had no legal battles, lawsuits, or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. IN FACT, THE WORKMAN’S COMP “MOD RATE” IS .8, which means the liability insurance premium enjoys an annual 20% discount because of the excellent safety and injury history. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas.
Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 5% of our gross sales. A quick look at our accounts receivables report in the above data room show that we don’t have “too many eggs in 1 basket”. This ensures we are never vulnerable to losing a lot of sales because a given customer slowed down. In short, we have dozens and dozens of different companies who love working with us and count on the work we do. There are many other sources of revenue and diversified customers in our mix. Finally, there is no “seasonality” or substantial monthly sales or cash flow swings.
The Ownership Transition: In terms of this business transaction, we envisioned that the new owner would create a new role of sales and business development, which we have never had. We have everything in place to grow to $10M+, we just need more sales in the existing market with expansion with more recurring revenue and long-standing Contracts. As stated above, the seller will continue to work with the new owner for many years to build new trucks and equipment to keep the fleet on the cutting-edge/state-of-the-art.
No Technical Experience Needed: The new owner will require no specific experience since our workers know how to run themselves in every aspect of the operation. 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. The seller wants to find someone to take the business to the next level.
Our Great Employees: We have 26 great employees to ensure the finest quality work. We have the best office staff and shop techs in the business and the average tenure 8-12 years. In short, we never lose quality workers because they are paid above market wages and they love what they do, it’s that simple.
Reason for Sale: At age 63 the seller wants to retire. He has taken the company as far as he can and wants to step aside and let more of a “business development/sales/marketing” grow it going forward. He has done a great job positioning the company with 1,000’s of steady customers for a new owner to come in and take this to the next level by leveraging what he has started.
Licenses and Permits: The new owner needs no specific licensing or permits in Colorado; the company has all licenses needed to operate going forward. The new owner would be required to maintain existing city licenses
Please email if you have any specific question(s), path forward, or have potential interest in a phone call or face-to-face meeting with the owner/seller.
Business for Sale by Business Broker Paul Olsen:
Located in the Denver Tech. Center (South Denver)
Seller is age 68 and wants to retire
22 Yr. Fast-Food Chain Communications Biz – with Real Estate.
Serving Rocky Mtn. Region, We Sell and Service Comprehensive Drive-Thru Communications, Headsets, Drive-up Intercom, Timer Systems, Video Surveillance, Everything.
2018 Cash Flow $1,195,701 (through 11/26/18) on sales of $4,590,781
2018 will finish up with $1,350,000 in Cash Flow on sales of $4,750,000
2 Business locations/cities) and Real Estate (Over 4,000 SF Bldg.)
The Sales Price of the company AND real estate is $3,800,000. The seller will carry up to $1,100,000 of that sales price for 3-4 years for a qualified buyer. This business will qualify for an SBA loan, but the buyer must have at least $700,000 of their OWN liquid funds to put down. The buyer gets $700,000 in real estate, approximately $210,000 in hard assets, $190,000 in current inventory, and about $500,000 in solid accounts receivables, business transfers Completely Debt Free (other than payables).
2018 Cash Flow $1,195,701 (through 11/26/18) on sales of $4,590,781
2017 Cash Flow was $669,087 on sales of $2,998,448
2016 Cash Flow was $708,800 on sales of $2,964,311
Please email to request and receive entire electronic sales packet with 4 years of income statements, tax returns, balance sheets, and a detailed video of the entire operation and a full interview with the owner on all aspects of this offering.
The seller will stay on for 3-4 months (or however long the buyer requires within reason) 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.
Please call or email us for the detailed sales packet.
Critical Points to Understand:
The Deal: The $3,800,000 transaction includes the real estate, and the seller will carry up to $1,100,000. We are selling both locations (Denver and Utah) AND the real estate (4,000 ft.² manufacturing facility). For over 22 years now we have completed over 30,000 jobs. As stated above, the transaction includes about $500,000 in solid accounts receivables, $210,000 in assets, and another 190,000 in current inventory. All assets will transfer debt free. Please see the video detailing the entire operation and a full site walk-through as well as several dozen pictures of the facility itself.
We Cover the Entire Eight-State Rocky Mtn. Region but do work in about 32 other states.
What We Do: We are the new standard for Drive-Thru Communications. We sell and service the widest variety of new and refurbished electronic equipment that is used in fast food restaurant chains and smaller individual restaurants. Our equipment is not optional for these companies; it is as critical as is the lifeblood of their daily operations. Our service, products, and customer support is our “hook” in keeping the relationship intact which keeps them coming back to us reliably year after year. This equipment is highly technical and other companies don’t have the entire product lines and exclusive territories that we have secured, all they want to do is sell new equipment.
About 80% of our sales and service is to large national fast food restaurants, fast casual restaurants, and coffee shops (such as Starbucks) that use headsets and other sophisticated communication equipment in their drive-thru’s. We sell and service Wireless Headsets , wired intercom systems, drive thru lane timing systems, Digital Order Confirmation Boards, High Definition camera surveillance, background sound systems with several music sources. We provide the most advanced communications equipment for restaurants. Most people don’t think about it but there is an enormous amount of electronic hardware and software communication equipment needed to keep these restaurant Drive-Thru operating smoothly and efficiently.
Our Customers: Our Long-Standing Steady Customers are ANY AND EVERY Fast Food/Coffee Facility with Drive Up Windows. Use your imagination; we have held long-standing steady relationships to install and service new and refurbished drive-up/drive thru electronic equipment with virtually every fast food and fast casual chain in the United States. This includes: McDonald’s, Burger King, KFC, Hardee’s/Carls Jr, Starbucks, Dunkin’ Donuts, Smash Burger, Sonic Burger, Taco Bell, 711, Baskin-Robbins, Boston Market, Dairy Queen, Del Taco, Einstein Bros, Five Guys Burgers, Good Times Burgers, Jack-in-the-Box, Popeyes, Quiznos, Taco Bell, Village Inn, Wendy’s, and the list goes on and on. In most of these locations we have either been the exclusive provider of all their drive through-related and communications electronic equipment, or at the very least, the preferred vendor for these companies, again, throughout the Rocky Mtn. region and the country. In most cases we have installed new state-of-the-art or refurbished equipment and we have serviced these accounts for well over 10 years and often 15 to 20 years.
We Are Completely Recession Proof – You Have to Have Our Units and Service: In fact, we are “inverse to the economy”. Simply put, we the economy slows down or falls hard, people shift toward fast-food and take-out vs. higher end fancy restaurants. This leads to less new equipment sold but increase in lucrative service and maintenance of existing equipment.
We have NEVER pursued any sales or marketing efforts. The work “just comes to us”, says the owner. For the last 22 years, we had absolutely “no sales and marketing efforts” in Denver. In fact, we have completed over 30,000 jobs in our history strictly through word-of-mouth and having the same customers call us back to the same restaurant locations over and over without putting it out to bid. It is the seller’s opinion that a wise and able person can come in here and double the revenue and triple the cash flow by hiring 1 salesperson in Denver that can get out in the field and call on existing and new customers to bring in more work. We have NEVER done this, in fact we have never even made an outbound sales call in 22 years. In fact, our website isn’t what it should be and we have no web-presence on social media at all. The point is that we have done very well in gaining trust and building a name without any professional branding etc. A business person could come in and professionally brand us to bring the company to the next level.
The companies cash-flowed over $1,350,000 on sales of over $4,500,000 in 2018 and the owner has not lifted a finger to get out there and bring sales to the company. Again, we have never had 1 sales person in Denver. This strongly suggests that the new owner can start to see sales grow swiftly with a sales rep to call on existing customers to get more work from companies that don’t currently use us. There are many national fast-food chains that have us work exclusively on say 30-40 locations, but not the other 80-100 locations outside of our 8-state market for whatever reason. The seller is emphatic that if you just called the regional offices and said that we want to sell and service other locations, we could get most of the work. But of course, at some point you would need more bench and field techs. A New Owner Could “Easily” Double the Sales and Cash Flow Within 3 Years: It is an absolute “hay day” in the Rocky Mountain Region in all our markets. 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.
You Will Need No Working Capital: Seller is leaving about $500.000 in AR and another 50,000 cash in the business for the buyer: The new owner will need NO working capital to take over and grow the company starting day-1 simply because the seller is leaving this behind. Normally, when someone buys a company, they need to take out a $200,000 line of credit or have $200k-$300k cash of their own available to run the company or perhaps $200K or more to hire more people to grow the company right out of the gate. Not the case here because again the seller is leaving this level of working capital and NO DEBTS at all.We Have No Real Competition: It must be made clear here that this company really has no true competition for what they do. There are 1-2 other companies that provide the same or similar products, but they simply do not have the one-stop shopping for all aspects of the hardware, software, wiring, installation and everything that goes into electronic communications for fast food drive-through chains and other smaller/local restaurant owners. Simply put, we do it all and that’s what our clients need for this critical equipment that keeps cars moving through the drive-thru. As you can see our margins are incredible seeing that we cash flow more than $1.3 million on sales of $4.7 million in 2018 – that is great margin. We provide the finest products and excellent service for our clients and they clearly pay whatever it takes to keep this equipment working and constantly upgrading.
Fast-Food Chains and Other Restaurants Need to Upgrade Equipment Every 4-5 Years: We have steady recurring revenue from long-standing contracts from the same 30-40 main franchises for about 70% of our annual sales. If we continue to provide great equipment, timely installs and steady service we will always have this 70% recurring revenue flowing in. We have a never-ending stream of income because the equipment that we provided just a few years ago will wear down quickly and either needs to be serviced, this is where we can make great money, or sell new equipment to these customers every three or four years. This equipment gets used very hard and becomes obsolete and outdated in just a few years due to product obsolescence and technology advances. As a point of fact, we have installed entire systems for over 50 locations in each chain every 3-4 years spanning the last 20 years. Due to corporate mandates someone like McDonald’s or Burger King may have us replace all their existing equipment for some or all aspects of what we do in 70 locations spanning an 18-month period. Some we’ve traded out equipment three or four times since our relationship started with them. We are intimate with the operations of each location and how to customize the equipment and service for optimal use. It would be illogical and inefficient for them to use us for certain products and another company/competitor for other installations and service, when we can do it all with “one stop shopping”.
Servicing These Units is the Most Profitable Area and is Critical to Our Customers: As stated this equipment gets used and beat up for 15-16 hours per day, 7 days a week and regularly breaks down or goes out of order due to this abuse. This is when they need a service tech to get to the location quickly and get the operation working on the first visit, no matter the problem or equipment needed. In general, all of this equipment gets hammered very hard by employees and customers. Great service and personalized service is one of our critical strengths for success and our customers love that we are one-stop shopping. With certain products there may be 1-2 other competitors in the West that can provide similar products that we sell, but they don’t provide the service that we do, if at all. This service work is “our hook” to our regional and national food chain companies because the equipment must work all the time and the drive-through can never close. It should be stated here that more than 70% of the gross sales in any given fast- food chain is sold out of the drive-thru window. So you can see how important this equipment is to keep coordination between the employees, management and customers running optimally and profitably. We charge $129.00/hr. and total labor costs are about $55/hr. This is hourly rate is considerably less than our national competition. We need someone to get out there and sell annual service contracts for more steady recurring revenue in the Denver market. We have some of these contracts in other states, but a new owner can really ramp this up, we just have not made any effort here. There has been a big effort in our Utah Company to sell this service and it has proven very lucrative.
Reason for sale: The seller is age 65 and wants to retire. He has taken the company as far as he can and wants to step aside and let more of a “business development/sales/marketing” grow it going forward. He has done a great job positioning the company with dozens and dozens of large national fast-food chains for a new owner to come in and take this to the next level by leveraging what he has started.
The Ownership Transition: In terms of this business transaction, we envisioned that the new owner would create a new role of sales and business development, which we have never had. We have everything in place to grow to $10M-$15M, we just need more sales in the existing market with expansion into new technologies that are evolving in the markets and with someone to drive the efforts to bring this in. The new owner will require no specific 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. The seller wants to find someone to take the business to the next level.
There Are No Negative Disclosable Items: The company is in excellent standing. There are “no ghosts in this closet”! As stated above, after completing over 30,000 jobs we have NOT had 1 complaint for unsatisfactory work that we did not immediately fix on our watch and our dime, we have never failed on a job or delayed a restaurant’s construction opening. We have had no legal battles, lawsuits, or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas.
Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 10% of our gross sales. A quick look at our accounts receivables report in the above data room show that we don’t have “too many eggs in 1 basket”. When we do have 5%-10% business with one customer each year, we don’t usually have the same big customer the next year – it changes each year. This ensures we are never vulnerable to losing a lot of sales because a given customer slowed down. In short, we have dozens and dozens of different companies who love working with us and count on the work we do. There are many other sources of revenue and diversified customers in our mix. Finally, there is no “seasonality” or substantial monthly sales or cash flow swings.
Our Great Employees: We have 13 great employees to ensure the finest quality work. We have the best office staff and shop techs in the business and the average tenure 5-15 years. In short, we never lose quality workers because they are paid above market wages and they love what they do, it’s that simple.
Licenses and Permits: The new owner needs no specific licensing or permits in Colorado; the company has all licenses needed to operate going forward. The new owner would be required to maintain existing city licenses.
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.
Business For Sale
Vape Ecig Company in Denver Colorado
Sold by Business Broker Paul Olsen
100% Absentee-Owned Business for Sale, Denver Colorado, Largest Vape/Ecig Retailer in the Rocky Mtn. Region – 7 locations in Denver Metro. (Plus 1 new one coming soon to Castle Rock, CO.)
2018 Cash Flow projected at over $1,050,000 on sales of just at $3,800,000 (est.)
2017 Cash Flow was $817,073 on sale of $3,594,933
2016 Cash Flow was 721,069 on sales of 3,166,724
2019 Cash Flow projected at over $1,200,000 on sales of over $4,900,000
Sales Price: $2,700,000, but the seller will carry $500,000.
“We are the Starbucks of the Vape/Ecig Industry”.
Locations in: Englewood, Lakewood, Littleton, LoneTree, Thornton, Westminster, and Aurora. (Plus 1 new one coming soon to Castle Rock, CO.) Please click on each location to see pictures. All locations are the extreme opposite of “head-shops”. They are all in A+ prime retail locations and all shops are impeccably-designed and outfitted for the best appearance and experience.
100% absentee-owned, the owner lives full time with his family in San Diego, CA. 12 key employees run everything, with 22 employees overall. “We don’t think anyone has ever offered 8 locations with consistent branding in what we feel are A+ surroundings that are just as classy, comfortable and brilliant as any Starbucks location”, states the owner.
Sales Price: $2,700,000 but the seller will carry $500,000.
Of course, one of the first things that come to mind when considering the purchase of one of the largest vape/ECIG companies in the West would be what about the regulatory environment, what about the FDA and the growing epidemic of Vape -pipe and oils usage? Quite honestly unless you’re in this industry you wouldn’t really know about the current regulations and proposed regulations that are likely to come over the next couple years. The owner’s general statement that this industry and this business “has nothing to worry about”. Of course, this is a very bold statement, but this comprehensive sales packet provides enormous about an information about the current regulatory apartment and where it’s going.
In fact, this report came out Jan. 30, 2019 stating that a year-long study showed that Vape/ecigs are twice as likely to get people off cigarettes than patches, gums and other products. https://www.nytimes.com/2019/01/30/health/ecigarettes-nicotine-smoking-quit.html?fbclid=IwAR2bLyyaw7liLq2rcMLWkqHZXD8OgKq7IDNj1dASebfJpz5Mz7ZvhXaRehw
We will cover this in greater detail below, but simply put, the FDA in the regulators in general or putting their emphasis on the manufacturers of these juices and oils. It must be made clear here that this company is strictly a retailer of these products and performance no manufacturing or packaging whatsoever. The only regulations that this company and other retailers must comply is simply that they cannot sell to teenagers under the age of 18. This company has the reputation of being the poster child for running the cleanest operation and has never sold to anybody under 18 years old in their history. As you’ll see below the seller is emphatic that these 8 locations run the cleanest and tightest operation in the country. everything is documented in the sale is never taken place without valid driver’s license and matching credit card, if used.
There ARE some retailers that will likely be impacted in the coming years such as gas stations, convenience stores, and mom-and-pop small retail outlets who make their own oils and juices. These retail shops will likely not survive the regulations and will be closedown because they cannot prove their compliance not selling two underage kids. This is great news for us, we applaud the regulations, because it simply means all these consumers will come to us.
An exact quote from FDA Commissioner, Scott Gottlieb on 9/12/18. “E-cigarettes may present an important opportunity for adult smokers to transition off combustible tobacco products and onto nicotine delivery products that may not have the same level of risks associated with them”. Mr. Gottlie is an ex-smoker and has gone on record many times to state that vaping is a way for “adult” to transition from smoking, a great alternative. BUT HE IS DEAD SET AGAINST “TEEN” VAPING USE.
Historically the Vape/E-Cig industry has been fragmented with individual “mom-and-pop” locations that look like pawn shops or classless smoke shops in quality. We serve the highest-end echelon of vape users and smokers who seek to quit. Simply put, “we have the largest chain (8 locations), finest image/branding, and products in the entire west”, claims the seller. Truthfully, 10-15 years ago the industry was still in its infancy and wasn’t professionally established. During the last 15 years or so the industry has exploded at a faster rate than the medical and recreational marijuana Industry, which of course is here to stay in growing rapidly, see Wells Fargo industry projections.
Because the industry is so established and here to stay, there have been some substantial roll-ups of smaller companies like ours in other states throughout the country. For instance, Philip Morris/Altria paid approximately $150 million for 108 retail vape shops in the East. Likewise, Vapor Shark purchased approximately 120 vape shops in multiple states. The big tobacco companies and other big players have been getting into the market in the last few years by gobbling up multi-shop companies like ours and they wouldn’t be doing that if they felt the industry was in peril, or even in question. Cigarette sales are in decline so they are shifting to vape/ecigs See here:
https://www.forbes.com/sites/greatspeculations/2015/07/24/will-e-cigarettes-be-the-knight-in-shining-armor-for-u-s-tobacco-stocks/#746248996fe9te a vapor that is inhaled. In a sentence, we are NOT a “vice product”; as a point in fact For Sale:
We are NOT part of the Vice/tobacco problem, we are the “solution”. We are NOT a “Vice” product: If you have a problem with buying a “VICE” company like booze of Marijuana, this is the “opposite” of a vice company. We are NOT part of the cigarette problem; we are part of the solution. Vaping is the fastest-growing ‘anti-vice, anti-smoking’ product in the world today says many of the business articles below. The DEMAND for any product that helps people quit smoking has, and always will be tremendous. There was approximately $80BB in cigarette sales worldwide in 2018.
The cigarette industry is falling off rapidly. The E-Cig industry has exploded as an effected alternative to smoking and has helped millions of people GET OFF cigarettes permanently. In short, our vapor product and our “exclusive” vapor-related products are the best in the entire country, bar none, the seller insists. The growth in cash flow from $200,000 in 2013 to $1,100,000 in 2018 speaks for itself. It has been a straight line up in sales, GP, and cash flow.
Business Model and Continued Denver Retail Build Out: We has added 1 store each of the past 45 days spanning the past 10 months. It’s simple, the very first day that we opened each of the 6 doors, the sales immediately went through roof. EVERY LOCATION is thriving and highly profitable.
The owner lives full time in San Diego and is a 100% absentee-owner who ha built something great and has taken it as far as he wants to. All 8 locations are highly successful, and the seller is clear that his incredibly profitable business model and great brand can be cloned into many other cities in the Rocky Mountain Region as well and many more locations throughout the Front Range of Colorado. The seller seeks the right person to take the company to the next level since he has all locations running very well. This transaction is perfect for a private equity group, a knowledgeable operator, or a larger company that knows how to take a solid business model and replicate it in other cities and leveraging the time and talents of others. The owner/seller is NOT the person to take on this next phase since he works full time managing a great deal of real estate he owns. In short, this is perfect for a large PEG that missed out on the Medical/Recreational Marijuana boom that started 3-4 years ago in the West.
We have many exclusive products and the lowest pricing with suppliers in the industry: We have the absolutely finest quality E-Cig/Vapor Products and exclusives supplier relationships throughout Denver: Our supplier relationships alone are worth a fortune to a new owner wanting to expand rapidly. The seller spent a great deal of time and energy identifying the finest Vapor units and vapor products that are being developed in California, many western states, and all over the world. Today, this company holds between 15 and 20 state-wide and regional exclusives for some of the highly-recognized product’s and brands in the entire E-CIG/Vapor industry. He has negotiated aggressively to obtain the lowest pricing available in the industry because of his bulk purchases ($120,000 in March alone), which is of course because of his buying power and retail sales volume.
The industry in Colorado and throughout the majority of United States, is in the very beginning stages of development and growth (California is the only well-established state at this point for E-CIG/Vapors.). Of the few brick-and-mortar retail locations that exist today, they are comprised of small, independent, mom-and-pop shops that we compete with. Because most-all retail competitors that we compete with are single locations, they simply don’t have the sales volume and the buying power that we have today with our 8 high-volume locations producing approximately $317,000/month in sales. Therefore, we have a substantial competitive edge in our wide array of product offerings, and we are also able to maintain the strongest statewide exclusives with fine vapor products with consistent suppliers. To summarize, our supplier exclusives and relatively low product costs are an enormous benefit to the new owner if they seek to expand to 10, 15, or even 20 locations over the next 1 to 2 years.
All 22 employees live by 2 mottos. PCC & BFB. The first stands for Professionalism, Customer Service & Consistency. The second stands for Building Future Business. We make sure that every sales transaction implements PCC & BFB thus helping not only maintain customer loyalty but it also helps us grow organically faster. There are a few things that can be done to increase revenue and double sales. Simply stated, we need more locations. At this point we have all the numbers crunched and systems in place so increasing sales and revenues is achieved by adding locations to existing infrastructure. Another option to increase sales/revenue that we may do in 2019 is buy out the smaller competition. Acquiring 2 or 3 locations with underdeveloped potential is the goal. With our superior profit margins, overall more efficient overhead, larger variety of products & better customer service we can turn any vape shop with a good location into a very profitable location.
We feel we have Biggest name in Vapor and Strongest Branding in West. To our knowledge we are not aware of another company in the West (including California) that has as many as locations, with the wide array of products like we do. We sell it all: Eliquids, vapor units, starter kits, accessories, batteries, chargers, vapor tanks with every flavor and nicotine strength/level imaginable. We have a website with the most extensive choices with an-easy-to-follow shopping-cart-filling programs for on-line shoppers.
An Annuity for the Future: We are building an “annuity”; a steady stream of predictable income from a loyal customer base by doing a great job up front of taking a “consultative approach” to establishing a long-standing and loyal relationship with our customers. We already have over 50,000 documents customers who have purchased units and products from us in just the past 2 years. These loyal customers will provide a steady/predictable income stream to the company for many years to come. We have done a great job of taking the extra time of educating our customers on E-CIG/Vapor benefits vs. cigarettes and gaining their trust. All this effort helps them explore what works best to achieve whatever cigarette-quitting goals they have. To summarize, we are an excellent alternative to help smokers quit. No one that we know has the branding and professionalism that we offer in an otherwise mom-and-pop-type new industry.
As stated, all locations enjoy a solid stream of steady customers throughout the full day, 7 days/wk. In fact, immediately after we have opened each of our 8 locations, they were instantly profitable. This is because the current owner has done an aggressive job of establishing the lowest overhead and COGS with suppliers possible. Also, he has done a great job of negotiating the lowest lease rates with all landlords. This way, regardless of the initial foot traffic in the first 1-2 months of being open, we are assured to being far more profitable than we otherwise would be.
Business For Sale in Colorado:
Sold by Paul Olsen
This is the actual sales packet for:
Big Air Entertainment Experts, Inc. (S- Corps)
(19 yrs. Old)
The Sales Price of the company is $2,200,000, but the seller will carry up to $1,000,000 of total sales price for a qualified buyer for up to 5 years, if the seller is in first position to the business. 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. If the buyer seeks an SBA loan, the seller will carry up to $500,000.
2016 Cash Flow was over $505,740 on sales of $1,708,523.
2017 is expected to be about the same.
2015 Cash Flow was over $527,685 on sales of $1,575,074
2014 Cash Flow was over $430,000 on sales of $1,402,209
(See all company financials prepared by CPA.)
We have NEVER had a year where sales dipped in 19 years in business, even during the recession.
Here’s the Real Opportunity: Do NOT buy the company simply to maintain things in Colorado and only cash flow $450K/yr. going forward, etc. The whole story here is simply this.. After 19 years of building the company, learning what is the best inventory, and getting this very unique/niche business model perfected, it is now ready to roll-out or expand in to other cities. The seller is “100% confident that taking what we have here in Colorado to other cities similar cities that would be perfect and he has a chosen the top 10 cites he feels is best to start out first. The seller is fine to stay on in some capacity to consult on exactly HOW TO expand to other cities. He is open to a transaction structure that will incentivize both parties to grow in other cities and share in the risk for the right buyer. He just does not want to move from Colorado or travel a lot to do it alone since he has 5 kids he seeks to spend more time with and also he does not have the energy or capital to do it alone. In short, if you saw the recent blockbuster movie, The Founder, based upon the McDonald’s brothers and Ray Kroc, the seller, Lance Miller would be the McDonald’s brothers who created the best business model that now “runs like a top”, but needs Ray Kroc’s energy, sales skills, capital and vision to roll it out to new markets that have an undersupplied demand of something they didn’t even know they wanted yet.
The sale includes about $1,000,000 in inventory, assets, trucks, and other equipment. The sale also includes over $150,000 in 13 trucks, office equipment and other hard asset value. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE. The sale includes 13 truck, and another $100,000 in 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 inventory 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.
About Big Air Jumpers: Big Air Jumpers, Inc. is a service-oriented company leases/rents a huge variety of most attractive, adult and child appealing products for your party. We have over 400 units in inventory worth well-over $1,000,000 in current quick sale value. The seller paid over $1,600,000 and the inventory is all updated and in full-use. As the biggest party rental company in Colorado, we are committed in bringing you the widest and greatest variety of jumper styles and sizes to best fit your party needs. That is what keeps us ahead of the competition. Our goal is to introduce all the newest and most innovative jumpers, slides, and interactives to make your event a memorable one. Our team is made up of experienced individuals which will help you plan your event by leading you in the right direction in choosing the best inflatable that matches the theme of your party.
We have EVERYTHING a party or event could ever need: Bouncers, Obstacle Courses, Kids Play Centers, Interactive Games for Kids and Adults (HUGE for Adult Events), Dry Slides, Water Slides, Carnival games, Concessions, Food Staples, Entertainers, Tables Tents & Chairs, Mobile Climbing Walls, Mobile Photo Booths, and much more.
At just $1,200,000 down at closing, the owner is selling the company for essentially the net asset value of the company’s assets. He is willing to carry the good-will, blue sky and intrinsic value part of the company. 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, and then also pay another $1,100,000 for the value of the assets on top of that.
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 in Denver, the Front Range or role it out in other cities as stated above.
Reason for Selling: The seller/owner recently had a cancer scare (tumor in a bone) and at age 55 wants to focus on other things, which includes spending time with an ailing parent. As stated above, he is 100% confident that the business model has all the kinks work out and today cash flows solidly, but he realizes that he is not the person to roll it out. The seller, however, is nationally-known to be an expert in the party and event rental industry, and has been called-upon by large national suppliers to consult on product development, etc. He is clearly knowledgeable about the industry, what is popular, and how to manage operations, but he is not the sales and business development-type to cookie-cut it in other cities. This is what he seeks at his stage, a person that can train under his toolage, learn the industry, and open new locations in the top 5-10 markets that he knows are perfect to explode into.
The most exciting part of this business is simply the fact that the seller makes between $450,000 and $525,000 per year, but only has to work full time for 5-6 months of any given year. In this industry when “it rains, it pours”, meaning the business is very busy from April to September. For other 6 months in a given year, things slow down dramatically and the seller may work just 10-15 hours a week while the business is more dormant. It is during these months that the seller can travel and spend time relaxing, etc. The point here is that I, for one, would much prefer to own a business that I only have to work hard 6 months a year and make $500,000+ a year, vs. a business where I have to work 12 months a year for say 40 or 50 hours a week for the same $500,000+ a year in cash flow. From a cash flow standpoint it is important that the new owner realizes that they need to horde some of the money that they’ve earned during the strong months to get through the slower months when the revenue is down, but of course overhead is also down. In summary, from a quality of life standpoint, this is a very attractive attribute of this industry/business.
Wow!! After 19 years in business, BBB Accredited and “A+” rated. We have “0” unresolved complaints. In fact we have many positive reviews.. See link below: https://www.bbb.org/southern-colorado/business-reviews/bounce-houses/big-air-jumpers-in-colorado-springs-co-87333754/reviews-and-complaints
Our Standing with Safety and Operations: We are in excellent business standing with all regulations, employees, customers and suppliers. We have had NO legal battles, and have absolutely no “ghosts in the closet” whatsoever. We are financially solid with over $1,100,000 in assets 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.
Lance founded Big Air nearly 19 years ago in Colorado Springs, CO. Since its start BAJ has grown into Colorado’s largest inflatable rental company and has grown to two other locations, one in the Denver Metro area and the other in Fort Collins. The business started humbly by providing children’s rental equipment to the many church organizations and youth groups that Lance had affiliation. Initially the business grew from its small start, by word of mouth to other churches in the Colorado Springs area. Through the connections Lance made during his tenure at the Denver Seminary for graduate school he was able to bring the business from Colorado Springs to the Denver Metro area. Since then, the rest is history – the business has had increasing gross revenue year over year, even in 2007 during the recession.
Due to the increased demand for BAJ’s services, they purchased an Online Reservation System, called Rentmaster. This system is connected to the work stations in the call center so they may provide superior reservation services to future customers. BAJ owns this system outright and has no licensing fees. The initial purchase of the system comes with upgrades and support and provides the capability through the website for real time reservation, 24 hours a day for customers. BAJ has also purchased a customized paperless application with routing and messaging, which stores all of BAJ’s paperwork. This customized application is one of a kind and is integrated into Rentmaster. This particular application is owned by BAJ, but can be sold to similar companies who have a Rentmaster database.
During BAJ’s long-term existence (19 years thus far) they have been able to perfect their industrial best practices and are considered, by others in the industry, leaders in service, practice and performance. Due to BAJ’s high level of success a few years ago they were able to acquire the company, Daily Twist, Inc. Daily Twist is owned by a parent company, Entertainment Experts, LLC, and the company is still operated separately through their own website.
Marketing and Sales:
BAJ currently markets the business through online and website advertising – the online advertising is managed by a 3rd party vendor. They also participate in Google Adwords, SEO, subscriptions to industry related websites, bulk mailing to customers, annual mailings to schools, and seasonal direct mail. The business has grown through the years with repeat business from their loyal customers. The repeat business accounts for approximately 50% of sales from satisfied customer’s and continues to grow through word of mouth recommendations. This is a relationship business and customer service and safety are two of the most powerful marketing tools that places BAJ as the largest inflatable rental company in Colorado. Marketing and all advertising is targeted to the entire Front Range, from Fort Collins to Colorado Springs.
Every year BAJ has grown in revenue EVERY single year for 19 years, which has prompted the multiple location expansion across the Front Range. BAJ has also established solid relationships with their suppliers providing the company with the best pricing for products in the industry. With the national supplier relationships and BAJ systems in place for growth, this business could easily be taken to the next level Nationwide. BAJ is already prime for expansion to other locations across the US – the potential revenue growth is there for the right buyer.
The Colorado population is rapidly growing and the local outlook for the party industry is naturally on the upswing. Coloradoan’s are vibrant and love the party atmosphere along with the population growth this industry will continue to grow. This industry is always in demand and the recession has little or no effect on the growth of the business. Parents, generally, want to provide parties for their children even during times of economic downturn. This detail is supported by the increase seen in BAJ’s revenue during the recession of 2007.
BAJ is Colorado’s largest inflatable rental company in Colorado. Their products are designed for a wide range of activities, from backyard birthday parties to full-blown festivals and everything in-between. The customer’s events will be a hit with very little work on their part. BAJ will come to the customer’s location, set up, staff and tear down event equipment to support the customer’s entertainment goals. BAJ provides party services for private home parties, school functions, church youth organizations, festivals, large corporate events and community events. BAJ has a large variety of products that meet all party needs, which consist of: inflatables, tents, tables, chairs, concession equipment, carnival games, interactive games, photo booths, laser tag, rock walls, trackless trains, and eurobungies.
There are several competitors along the Front Range, all of which have a smaller presence than BAJ. These competitive brands include: Blaster Bouncer, Gravity Play, Fun World, Fun Productions, Fun Services, Amberg Entertainment, Roo Jumps and a few home-based small operators.
Our locations: (3 locations) BAJ has 3 industrial locations, Colorado Springs (the call center is housed in this location), Denver, and Fort Collins. The initial location was in Colorado Springs, CO and currently has 5,000 square feet of leased space. Of the 3 properties, the seller only owns the one in Colorado Springs. He is open to lease or sell the property. The Denver location is the largest leased space with 10,000 square feet and is the central location for equipment. From this location equipment can easily be transported to areas along the Front Range. The Fort Collins location is a smaller storage unit and is rented on a month-to-month lease.
Denver: lease expires January 2019, rent $4416.00/mo
Colorado Springs: lease expires October 2021, rent $4200.00/mo
A New Lease or Sale of the Colorado Springs Property to the New Owner: As stated, of the 3 properties, the seller only owns the one in Colorado Springs. He is open to lease or sell the property. He will sell it for $575,000 or lease that property for $3,500/mo. NNN for the first 2 years, then $4,000/mo. for 2 years, then $4,500/ for 3 years, totaling a 7 year lease (minimum term).
Employees and Management: BAJ is well staffed with several stable and long-term employees. These employees truly believe in the mission of the business, which is providing excellent customer service to the customer and all attendees of each event. They have a passion for providing a safe and fun environment for the special events in people’s lives. As a testament to the business, the turnover rate of the management and full time staff has been minimal. BAJ prides themselves on providing excellent training to their employees and treating their staff with the utmost respect. The tenured managers and staff are expected to remain with the company after the sale of the business.
The longest tenured employee with BAJ is the Seasonal Event Specialist, who has been with the company for seven years. This employee is primarily in charge of customer care and the service for all events, they also act as the liaison between BAJ and points of contact (POC) for large events. Their other responsibilities include taking orders, overseeing office staff to ensure they are following office procedures, data entry, and creating reports to include all staffing and large jobs for logistics preparations by the Operations Manager, Staffing Coordinator and the Owner.
There does tend to be a high turnover rate with the 1099 contract drivers. This item has been present since the start of the company and is not looked at as unusual with contract employees in most professions. The seasonal staff is typically older high school or college age students; their retention rate is variable with several returning each year, however many move on to their future careers.
Denver Staffing Coordinator:
The current Denver Staffing Coordinator is at the start of their third year with BAJ. The DSC covers the Denver Metro and Fort Collins locations. Their responsibilities include hiring, training, and supervision of the staff and drivers. The DSC sends out run sheets for upcoming jobs and provides job name assignments. As part of their supervisory duties they approve and manage staff requests for time off.
Denver Driver Lead:
The Denver Driver Lead has been with BAJ for four years now and handles weekday supervision of the cleaning crew and manages larger events in the Denver Metro Area. The DDL has several years of experience in the industry after working for one of the BAJ competitors.
Colorado Springs Operations Manager:
The CSOM has been with BAJ for over four years and has a significant role in the operations of and the supervision of the call center. The CSOM is the second in command within the company and has become a very valuable employee. This person is responsible for many different high-level roles within the company.
Denver Contract Driver Manager:
The DCDM oversees the hiring, training and supervision of all Denver contract drivers. The DCDM also provides direction and support for routing the drivers and has been with BAJ for over 10 years.
Number of full-time employees:
The Colorado Springs location, inclusive of the Call Center, has 5 FT employees. 4 of the Call Center employees take the winters off. The Denver Warehouse location has 2 full time employees and Entertainment Experts has 1 full time employee.
Number of part-time employees:
The Call Center has 2 PT employees. Depending on the season, Drivers and Staffers number between 15 – 20 employees. Since this is seasonal, part-time work these employees are mainly comprised of college students.
Number of 1099 contractors:
There are 20-25 1099 contractors; the number employed depends on the season. The contractors use their own vehicles for deliveries and they are also responsible for set up and break down of the equipment at each event location. The 1099 employees are primarily used for home deliveries throughout the year. All 1099 employees have contracts with BAJ.
Recruitment and training for each position:
Recruitment and training is variable depending on the position. Driver recruitment can occur as quickly as one day or can take up to two weeks, depending on the season. Driver training can take from one to two weeks to gain full proficiency, with management providing ongoing support to the employee.
Call center reservation specialist recruitment averages one to two weeks. Training usually takes two weeks with ongoing support, after a month on the job they can become completely self-sufficient.
Seasonal staff recruitment can take as little as one day and is ongoing throughout the season. Training usually is one to two days with ongoing support from the seasoned employees. The more difficult pieces of equipment require certification to use for which each employee is trained and certified following their hire.
The current owner oversees the management and is responsible for all advertising. Hiring a Manager of Operations would replace the current owners’ duties allowing the new owner to be semi-absentee if desired. The tasks, concepts and strategies of the business will take approximately one month for the new owner to become proficient. The current owner is willing to stay on for 3 weeks (40 hrs/week) at no additional charge to the new owner.
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 efforts. This is something we have never had in all our 19 years.
Business For Sale in Denver Colorado by Paul Olsen:
This is the actual sales packet for:
Teilhab Manufacturing Inc. (S-Corp.)
We sell Cubic Utilization Equipment, Racking, and Shelving for Warehouses, Retailers, and Manufacturers all over the US and Canada to Maximize Their Storage Space.
2360 Industrial Lane
Broomfield, CO 80020
Real Estate Sale:
We are also selling the 5.5 acres of real estate including over 66,000 SF of a state-of-the-art manufacturing facility and office space. We are also selling real estate for FMV or approx. $5,000,000.
UPDATE as of September 1, 2018: As stated several times in this document, one of the two owners, Norm Ooms, has been an absentee owner for the last 40 years of the business operations. Until April 1, 2018 he spent the last two years working full time at Lynch Manufacturing which is another company that he sold two years ago and worked there full-time for the last two years. Starting April 1, 2018 Norm came to work for Teilhab, and in only the last 30 days Norm has identified a wide variety of inefficiencies and areas where money is being wasted or could be saved going forward. These include approximately $35,000 a year in medical administration cost savings as well as $35,000 a year in 401(k) administration expenses. He is looking into the possibility of reducing cost of goods sold (COGS), including steel and other material costs by up to 5%. If an owner was operating the business full time over the past 2 years or so, they invariably would have identified this waste as well as other areas of waste which would have resulted in a profit last year versus a $288,000 loss.
ALSO, SEE ATTACHED LLETTER FROM OWNER ATTACHED AS A PDF.
YOU MUST see the 45-minute video interview with the owner as well as a full facility walk-through in the data room above.
The sale includes approximately $100,000 in cash, approximately $475,000 in accounts receivables, and $1,700,000 in assets (QSV), (original cost was over $2,750,000), vehicles, and great equipment to perform all manufacturing. 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, including accounts payables being paid off at closing. This totals about $3,500,000 in NET 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 5 years of company financials and tax returns etc.
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.
Critical Points to Understand:
100% Absentee-Owned – An On-Site Owner Can Do Much Better. The business has always been 100% absentee-owned, since 1977. In fact, the owner has worked full time at another company nearby. However, starting just this month, he is going in to work for Teilhab part time to help out. We have 23 great and loyal employees that run all day-to-day operations, but a business will NEVER be “pushed” unless there is an on-site owner. Absentee-owned businesses will never run optimally or as efficient as one where the owner in pushing it. In fact, in 2013 we cash-flowed over 1,200,000 on sale of $7,141,522, but no one was in there to push sales and marketing efforts when they fell in 2015-2017. This is all we need now.
What We Manufacture and For Who: As you would imagine, large warehouses, distribution centers and manufacturing facilities need to store large quantities of products that are held either for short or long periods of time until they are shipped out. These warehousing, distribution and manufacturing facilities have between 10,000 – 1,000,000 square feet (or even 2MM-3MM SF in the case of Amazon, Walmart, of HD-type facilities) of storage space needed to hold products for a period. Holding as much product as possible is often critical for all these locations and is call “cubic utilization/maximization”. To squeeze square-footage in todays’ warehousing, distribution, and manufacturing locations, companies need to go “vertical”, now, more than ever to get the most product stored. This is where we come in.
We manufacture high quality, durable cubic utilization equipment to suit most storage needs. Our main product lines are “Q Shelf” rivet shelving, “Q Rack” teardrop style pallet rack, and “Q Mezzanines” free standing storage platforms. We will use our Q Shelf and Q Rack products to design and support full mat mezzanines, elevated access walkways, and pick modules. Just a few examples below.
We manufacture these products and systems in our 60,000 SF facility in Broomfield, Colorado, between Boulder to the north and Denver to the south. We have over $3,000,000 (cost) of solid manufacturing equipment that is included in the sale. The facility is very well laid-out and we have everything in place to produce over $12,000,000 – $16,000,000 in sales. The new owner needs nothing new to triple the sales, just more people and more materials.
Gross Sales and Cash Flow Declined Between 2015-2017 Due to “NO” Proactive Sales and Marketing Efforts:
2013 operating income was $1,160,360 (+Deprec. $52,055) on sales of $7,141,522
2014 operating income was $922,009 (+ Deprec. $63,567) on sales of $7,104,224
2015 operating income was $954,366 (+ Deprec. $71,914) on sales of $8,151,790
2016 operating income was $97,318 (+ Deprec. $86,069) on sales of $4,875,139
2017 operating LOSS was $289,935 on sales of $3,993,923
(See all company financials prepared by CPA who has been with us for over 20 years.)
It should be very clear by looking at the figures above that the net income plus depreciation has been approximately $1 million to over $1.2 million on sales of $7.1 million to 8.2 million between 2013 and 2015. Gross sales fell to $4.9 million in 2016 and approximately $4.2 million in 2017. Notice that although sales fell by approximately 50% operating income fell substantially greater, as a percentage. In fact, in 2017 the business suffered a loss of approximately $400,000. It has been long known in this business and similar industries, that the business needs to gross about $6 million in sales to turn a decent profit and closer to $7 – $8 million in gross sales to generate about $1 million of net income. Simply put, this industry involves a great amount of overhead because of the large manufacturing facility, utilities, and employee base. Once the business begins to gross $8 – $10 million or more, a substantially greater portion of the incremental sales will fall to the bottom line as fixed costs are covered, and the primary variable costs such as raw materials and additional labor is relatively negligible. It is estimated that if the new owner got in there and increased gross sales by 50% above the 2014 high of $8.1 million, the business could cash flow over $3 million on sales of $12 million.
The Fall in Sales the Past 3 Years: There are several reasons for the fall in sales from over $8,200,000 in 2015, down to $4,000,000 in 2017. First, up until now, we have only had 2 outside sales reps responsible for all our sales. Knowing each sales rep maxes-out at about $3,000,000/yr. in sales, we have always been stuck in the $7,000,000-$8,000,000 range because we never took the time (effort) to hire 2-3 new sales reps.
Second, it is critical to understand that a business that is 100% absentee-owned will never perform nearly as well as one where there is an on-site owner watching the business and pushing it every day in sales, marketing, and business development. Also, Don Rutkowski, the sales manager, retired last September (2017) after working 36 years in the company, he was 68 years old. Although Don was a good and long-standing employee of the company, he never did push the small sales team of 2 reps much at all. (In fact, Don was 1 of the 2 outside sales reps.) It is important to understand that in 2015 we considered selling the business, and Don likely pulled back sales efforts.
The two owners of the business, Norm and Irma, ages 69 and 79 respectively, have always been completely passive and never pushed Don to grow the business, certainly after it fell in 2015-2016. It’s typical that when you’re going to sell your business, you tend not to work hard to procure new customers, especially when there is about a 12-month lag time between meeting customers and getting orders.
In addition to Don not pushing for new sales in 2016, the business lost several key customers including Dicks, Cabela’s Sporting Goods and Target. It is important to understand at this point that sales manager made a critical error of having too much of the sales connected to retail. Companies like Cabela’s, Dicks, Target and other retailers need material handling storage for their products in the retail outlets, however, this segment of the market ebbs and flows sharply. In our industry, the other segments of the market which should have been hot over the last 10 years is warehousing, manufacturing, and other material handling companies/operations. In hindsight, we should have been selling our racking, shelving and all other products we manufacture, to the enormous growth that has been taking place in wholesale distribution centers, warehousing, and small and large manufacturing facilities. More now than ever, they need to vertically-store finished products and other materials until they’re shipped on.
The owner has also recently stated that another reason that nobody invested the energy to grow the sales is because they felt if the business were to be sold, the new owner would come in and determine which segments they wanted to push into and hire a new young, and more aggressive sales manager to pursue those markets. Again, bad planning and thus the 2016-2017 drop-off.
Although the seller is completely removed from the business, it is very clear that a new motivated on-site owner-operator could get the business to over $10 million in annual sales within 2 to 3 years and cash flow at least $2 – $2.5 million, especially given that the business has no debt at all, and a very strong financial position.
More good news, the company recently hired a very strong and experienced new sales rep who has a strong name and 15 years selling to the exact customers in our industry that we need to be targeting. He is very solid in selling to larger management distribution handling companies, i.e., warehouses, wholesale distributors, and manufacturers. This new rep should bring us at least $1,500,000 in the next 12 months, with at least $700,000 per year of that with a large national auto parts company that is expanding swiftly. This new sales employee has a long-standing relationship with this company and is confident that he can bring these annual sales figures in within the next 6 months or so. In addition to this sales rep bringing $700,000/yr. in sales from this source, we are confident that he can bring in at least another $1,000,000 in annual sales from other customers he has been selling to for the last 15+ years starting 2-3 years out.
It should be made clear here that the average salesperson in our industry should bring in about $3 million year in sales. If new owner hires just 2 more new sales people within the next 6 months, we could likely get sales over $10,000,000/yr. starting 2019.
We have always known that there are 1,000’s upon 1,000’s of new and existing customers that our 2 current reps and new reps could be calling on starting immediately, we just need someone to come in here and motivate and lead them. This has been something we never really had, at least in the last 4-5 years to speak of.
To Summarize Our Biggest Mistakes and Path Going Forward: It’s critical to understand that during the last 10 years we became heavily reliant on the retail market which provides our products to retail facilities such as Cabela’s, Dicks and Target. The biggest mistake we ever made was keeping all our eggs in that basket and not taking some of the enormous profits from 2012 to 2015 and directing those profits into hiring a few new sales people and getting more distributors to sell Material Handling Equipment (MHE). If we did this, we would not have suffered a downturn in 2016 and 2017. Also, over the last 2 years sales fell largely because we reduced volume to our largest account, Cabela’s. We have already made efforts to shift into selling MHE through more distributors, but the new owner should put great emphasis in pushing into less more steady markets such as warehouses, wholesale distributors, and manufacturers. Going forward, the new owner should grow this area greatly which will not only produce much better margins, but also diversify our customer base away from relying on retail sales.
What Makes Us Unique (Our Hook): Our design and production capabilities combined with our years of experience allow us to stand apart from other manufacturers who manufacture and install canned, off-the-shelf systems. Our customer base depends on our expertise and work ethic to design, manufacture and ship high quality storage products. With our customers’ projects across the US and Canada, we can provide our materials timely to meet critical deadlines and installation timelines.
We provide “canned, generic, off-the-shelf AND Custom Systems: The key to our success (our hook) that our competitors don’t have because they provide “canned, off-the-shelf” systems that don’t fit every facility. We can design and build systems and solutions for any facility. Because we design systems tailored to the customer, we often compete against no one and thus we enjoy much higher margins vs. commoditized products. Also, because we custom design most systems for customers, we get ‘close to’ and build a relationship with the customer throughout the process and demonstrate a great expertise. This way when the time comes to write the order, they are unlikely to shop-it with another company. In fact, our close rate for customers that we design very high.
We can manufacture virtually any storage and catwalk products for storage including: Rivet Shelving, Industrial Shelving, Bulk Shelving, Steel Shelving, Boltless Shelving, Record Storage Shelving, Selective Rack, Drive-In/Drive-Through Rack, Pushback Rack, Flow Rack, 3-Level Elevated Walkway System, Multilevel Pick Module, Rack Supported Storage Platform, Storage Platform, Lower Level – Supported Walkway System and Full Mat Storage Platform Installation.
Another Area of Great Weakness: “We have not changed anything in our administrative or sales and marketing efforts in over 30 years, says Norm Ooms”, the owner. We have not at all made changes or really grew with the times, another downfall of being an absentee-owned company. Our manufacturing procedures and equipment are good, we have that down to a science, but all other “business” part of the company such and admin, sales, marketing, business development strategies, web-presence, etc. is still stuck back in the 1980s. Not only have we not changed much in the past 30 years, we have not even attempted to raise our prices or cut our costs in the past 10 years. It was once said, “it costs nothing to raise your prices, it all falls to the bottom line, so do it whenever you can”. In retrospect, while everyone else has been riding the economic wave and raising prices, and getting their business more efficient, we have done nothing in these areas. A new owner who is more hands-on can make immediate and dramatic improvements here.
In fact, the owner recently had a full review of our operation conducted by an experienced industry professional who advises the Material Handling Manufacturing Industry on improving operations and can bring a wealth of knowledge and some great changes to our company immediately if the new owner is open to them. Please see the extensive 4-page detail on his short and long-term suggestions in order of importance and fasted return on effort/monies invested, as well as the 1-page letter from the owner covering more details.
We have never had any significant web-presence and have done nothing to really get the name out there or brand the company. The seller is clear that there is a whole world out there of web-based sales where we could be selling the off-the-shelf-type products on a mass basis to many applications, but we haven’t taken 1 step in this area.
Another thing we are maybe doing wrong is that we have never charged any upfront fees for designing or customizing systems for our customers. Oftentimes we fly out to a facility for a customer take measurements and consult with them, and then come back to the main office and spend a great deal of time designing a proposed system. Sometimes we do all that work, which can cost $5000 or more, and a great deal of time invested, and in the end the customer may not buy the system. Occasionally they may even have a competitor build the system we designed for a cheaper price. We need to change this practice by charging an upfront fee of $5000 or more to at least cover our costs and pay for some of the time associated with designing the proposed system. It is the owner’s opinion that people would not balk at paying perhaps $2,000 – $5,000 up front and it would weed out the lookie-loos just shopping us. It has been long known that people often “follow their money” when making ultimate spending decisions. However, it would only be practical to charge these upfront fees to direct customers, not existing material handing sales firms.
We Can Use a New Racking Line to Cut Costs Dramatically: This will be the case, especially to grow above $12,000,000 in sales. This purchase is a no-brainer the seller says. See video for details on this.
2018 Is Looking Up Quite a Bit: 2018 gross sales have started out much better than this time last year, and with the recent sale rep brought on board, we think we have started to turn the corner.
The New Owner Needs to Buy the Real Estate: Please see the video which details the entire 66,000 ft.² building on 6 acres which includes inability to greatly expand the manufacturing facility by building 1 or more buildings on the extra acreage. The seller is not interested in leasing the property since 1 of the passive partners is 79 years old and wants to cash out. They are a little flexible on the price for the real estate and will sell it for fair market value based upon comps which again, is it least $5,000,000.
The real estate and building fits the business like a glove for many reasons given the hundreds of thousands of dollars that have been invested in facility upgrades for utilities, electrical and overall infrastructure. In short, it took many years to position the equipment and set up the operations to maximize efficiency and minimize waste and steps between procedures to finalize products. Finally, it would be better to pay yourself a rent vs. the current owner, and this way you can enjoy the continued appreciation of the property going forward in a fast-growing area. In fact, the area has grown steadily over the last 30-40 years and is projected to continue to grow swiftly over the next 10 to 15 years given forecasts.
-85% of sales are through distributors and the other 15% is sold directly.
-We have not manufactured or gone after the largest customers such as Wal-Mart, Amazon, Target, etc. These tend to be large generic systems that are more competitively-priced and have lower margins. Again, we prefer the niche we carved for small-to-mid-sized companies who need design-build custom solutions, better margins here.
One of the 2 main owners visit the operation just 1-2 hours per week, the other owner never comes in.
There Are No Negative Disclosable Items: The seller will give full and solid representations and warranties of the company’s overall standing with customers and suppliers etc. There are “no ghosts in this closet”! As stated above, we have NOT had 1 complaint for work completed 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 satisfied. We have had no legal battles or lawsuits or pending violations of any sort. We have no OSHA violations and we have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warrantees that provides for a solid protection of the buyer in these areas.
Colorado business broker.
Business For Sale in Colorado:
We are a large $5M/Yr. (2018) Commercial Stucco, Stone and Masonry Exteriors company for sale. (We do mostly multi-family housing condo and apartment complex work.)
17 years old (Since 2002)
Buyer gets about $600,000 in solid accounts receivables and cash and over $200,000 in assets inventory (debt free)
The Sales Price of the company is $2,400,000, but the seller will carry up to $800,000 of that sales price for 3-4 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.
2018 Cash Flow expected to be over $850,000 on sales of close to $5M
(As of 8/20/18 Cash Flow was $663,337 on sales of $3,617,133)
2017 Cash Flow was $673,915 on sale of $4,155,681
2016 Cash Flow was $535,273 on sales of $3,391,178
(See all company financials for the past 5 years including tax returns in the data room we can email you.)
Please email for the entire electronic sales packet with 4 years of income statements, tax returns, balance sheets, and a detailed video of the entire operation and a full interview will the owner on all aspects of this offering.
The sale includes ½ of all accounts receivables (about $600,000), $25,000 in cash, and over $200,000 in assets, vehicles, and state-of-the-art equipment to perform all forms of work. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE. This totals about $825,000 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 4 years of company financials and tax returns etc.
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.
Please call or email us for the detailed sales packet.
Critical Points to Understand:
Reason for sale: The seller is age 55 and a few years ago had a cancer scare. Overall, he is burnt out, tired and wants to move to the home he recently purchased out west.
The (new) owner will cash flow over $850,000 in 2018. The seller seeks $1,600,000 down at closing, and the sale includes over $825,000 in assets at the closing, completely DEBT FREE. The seller is carrying almost 100% of the good will, blue sky and intrinsic value of the company. The balance of $1,000,000 will be paid through the cash flow of the business over the next 3-4 years.
The new owner will need NO working capital to take over and grow the company starting day-1 simply because the seller is leaving behind about $600,000 in “current accounts receivable” and $25,000 in cash. Normally, when someone buys a company they need to take out a $500,000 line of credit or have $200k-$300k cash of their own available to run the company or perhaps $500K or more to hire more people to grow the company right out of the gate. Not the case here because the seller is leaving this level of working capital and NO DEBTS at all.
The owner has always held the company back and has always been content with $400K-$600K in annual cash flow. Please see the video above where the seller states that they turn down more than “1-2 X’s what they take on at any time”. Stated differently, if the new owner wants to take on $10,000,000 in work in the next 12 months, it is their’s for the taking. “Denver has been a hay-day for the past 8-10 years, and there is no end in sight”, the seller states. Our customers are constantly pushing us to take on more work, and do a wider variety of the work that we do NOT do, such as masonry, stone, block, metal panels, and siding etc. Our focus thus far is to just do stucco and some small-scale stone work. Last month we turned down a highly-profitable $11M job that was virtually handed to us. We hand off this work to other contractors all the time. Our existing and long-standing customers love our incredible quality and reliability, that they are pushing us to be a“one-stop-shop” for them, vs. having to work with 2-3 different companies for their siding and exterior work.
There Are No Negative Disclosable Items: Representations and Warranties of the Company’s Overall Standing. The company is in excellent standing. There are “no ghosts in this closet”! As stated above, we have NOT had 1 complaint for work completed 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 an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas.
We do: Commercial Stucco & Stone, Residential Stucco & Stone, Construction Defect Repair, New Stucco Installation, ½” & ¾” Stucco, EIFS, Synthetic Stone. In recent years our average job is about $200,000. We have done many jobs in the $500,000 – $1,000,000 range. Very few companies have the history, trust and experience to be awarded jobs of this level. It took years, but we have very much earned the great spot we are in. A great portion of the work we do these days we do not have to even compete or bid for. It is ours to have, it is negotiated work. This means we submit an estimate and it is almost always granted to us assuming we don’t gauge.
We have exceptional in-house teams who specialize in construction defect repair, new stucco installation, EIFS, and synthetic stone. Advanced Stucco Design, Inc. hires trusted subcontractors with whom we have established relationships, ensuring they are vetted, insured, and aligned with our mission.
There is no “seasonality” or substantial monthly sales and cash flow swings. It is hard to believe that even though we are a construction exteriors company, you would think we are somewhat dormant in the winter months and thrive during the 8 warmer months. That is NOT the case at all. We work all-but 7-10 days a year. In short, our November – March monthly sales and profits are roughly the same as the other 7 months of the year, and it has always been this way.
Finest Reputation: In terms of quality of work, we have the finest reputation and strongest working relationship with all contractors, and customers. We always meet or exceed specifications for each job. We have a BBB rating of “A+” and have NEVER has 1 complaint filed
Company website: Our site is only 2 weeks old, meaning we cash flowed $673K last year and will do over $850K cash flow this year without any form of past web presence. A new owner can really bring our company into the 21st century with better branding, web and social media presence and overall business professionalism to bring the company to the next level.
Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 10% of our gross sales. A quick look at our accounts receivables report in the above data room show that we don’t have “too many eggs in 1 basket”. When we DO have 15%-20% in a given customer work, please understand that is because we have a big job going with them. However, we don’t have the same big customer each year – it changes each year. This ensures we are never vulnerable to losing a lot of sales because 1 -2 given customers slowed down. In short, we have dozens and dozens of different contractors/companies who love working with us and the work we do, and many other sources of revenue and customers in our mix.
Our Great Employees: we do use some level of sub-contractors during busy times, however, in general, we have 42 great employees to ensure the finest quality work. Most of our competitors exclusively use sub-contractors to do all field work. The problem with this is not only the challenge in maintaining quality for the customer, but just as importantly, how can you be sure the subs will be available to perform on a given job to get the job done on time? We have the best office and field workers in the business and the average tenure 10-15 years. In short, we never lose workers because they are paid above market wages and they love what they do, it’s that simple.
New Owner Skills Needed: 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 Ownership Transition: In terms of this business transaction, we envisioned that the new owner would take over the role of the owner, and deal with all office matters including dealing with customers pursuing work and reviewing bids. The new owner does not need to understand the bidding process or even be able to create bids, since we already have a great estimator that secures all our work. You will need a new field guy to run the field/jobs. Good news, we have already identified an excellent replacement for our current manager, he is a subcontractor of the company for many years and has an excellent ability to run the field and all the workers. The owner has already met with him to discuss his willingness to join the company immediately after the transfer for approximately $60,000 per year and he is happy to do so for this compensation. Moreover, he is very well known in the labor market/field in this industry and will be able to bring on as many workers as the new owner will need as the grow the business and even double or triple the gross sales in the next several years. There is confidence that this new field manager/foreman can get all the workers needed to grow the business as fast as it grows.
No sales and marketing efforts: The seller has 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 seller is 100% confident that a new owner can double the sales and triple the cash flow in 2-3 years with new sales and marketing efforts. Or just take on more of the work that is being asked of us already as mentioned above. 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.
In short, this is all a new owner would need to do 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 ideally do both.
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 desire to grow, dedication and perseverance. 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.
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