Commercial Facility Remodel Business

Business Description

For sale is a 12-year-old general contracting business in Texas. They have a longstanding relationship with an extremely Popular Burger Chain and do year-round maintenance consisting of roofing repair, tile replacement, patching holes in the walls, HVAC, and graffiti removal, for which they are the only approved general contractor in the area.  (Burger chain name is sensitive and will only be disclosed in diligence, but it is a top 10 burger chain in the country.) The company is also authorized to do store remodels for the chain and expects to do at least 12 in 2024. Every store at this chain is remodeled every 6 years. As folks in the QSR industry will tell you (Quick Serve Restaurants), you have to ‘earn’ your way in, and the owner has done that with a relationship greater than 8 years, so the seller is the go-to for their maintenance issues, and now roofing and other ancillary jobs.

The company’s pricing is lower than most competitors, and revenue per remodel averages $185K.  Currently 73% of revenue is from the Popular Burger Chain and ~20% from other commercial businesses; however, the seller is pursuing additional customer diversification and is starting a project with a new customer this summer that is expected to be more profitable than the fast-food chain.

The company has 3 full crews of motivated, reliable, and dedicated subcontractors, plus 3 fully trained superintendents staying with the buyer.  If the buyer chooses, one remote, part-time employee can stay.  General contractor licenses are not required in any of the states they operate in. It would be helpful if the buyer had this knowledge, but is not required.

The owner has already notified the main client of her intentions to sell, and the client is supportive as long as the quality remains the same. Thus, the owner will stay on to transition for 6 months to assist the buyer.

2021 2022 2023
Revenue $4,485,170 $6,879,976 $7,144,853
Earnings $857,120 $1,616,329 $1,721,625

Financial Overview

Asking Price: $4,500,000

Revenue: $7,144,853

Income: $1,721,625

Multiple: 2.6x

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