Description of the business for sale
This excellent 3rd generation business has been providing superior services to commercial construction clients for 5 decades. This company is the largest, most reputable company of it's kind in the region owning a dominant market share. The company serves an active client base of over 45 customers of which 75% represent repeat business. Average tenure of managers is 20+ years which is nearly unheard of in this industry. Population demographics and new construction starts in the region are excellent. This opportunity should not be overlooked. Company services include tape and float, along with painting and wall covering installation for contractors based in the region. In 2006, new construction accounted for 70% of revenues, remodel work 20% and repaint jobs 10%. Jobs range in size from $60,000 to $200,000 with four to five large jobs at or above the high end range. The company currently sits on 3.2M in back logged orders that will be completed within the next year. Focus is on high quality work to satisfy customer needs, enhance company reputation and to generate increasing margins. The company currently employs 70 to 100 loyal employees.
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Support / Training provided by seller
Owner wished to retire. He will consider being retained for 2 to 3 years with the right buyer to achieve a smooth transition.
COMPETITION: This is a third generation company. The company's reputation is second to none in their geographic market. While market demand for painting services is heavily contigent on the economy in general, demand for this company's service seems to rise above the general fluctations in the market.
ADDITIONAL FINANCIAL INFORMATION:
REASONS FOR SELLING: Retirement.
EMPLOYEES: Full-time / Part-time: 70-100.
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Description of the facilities
Company operates out of a leased warehouse/office facility totaling 6,000 square feet and an adjacent Company-owned 40,000 square foot lot that was sold to the shareholders in 2005. Rents for the properties are adjusted to a fair market rate of $45,000 per year.
GROWTH: Economically, this company represents a sound investment opportunity as a stand alone purchase, however, buyers that can bring substantial expertise or existing operations with sales force and marketing channels in place will be able to add substantial value to this attractive Company.
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