Detail information about the listing
Entrepreneurial opportunity for an experienced & licensed Residential Construction Project Manager / Supervisor, capitalizing on very favorable & leveraged SBA 7a) Financing, as detailed herein.
Formed in 1990, and under the same ownership and management since, this Referral-Based Residential Remodel & New Construction Company generated $2 Million in Revenues for FYE 12/31/21. The current Contracts In Process (CIP) Schedule reflects $3.4 Million, with a $2.1 Million Contract Balance Due as of 06/01/22.
All CIP are supported by Home Builder Assn Standardized Contracts, with Job Scope, Schedule of Value, and Construction Cost Breakdown Schedules.
The $890K List Price is supported by a 92 Page Independent Going Concern Business Valuation Report (BVR), which will be released to the Buyer upon Pre-Qualification and an executed NDA & LOI. The BVR was based on the Seller’s quality and independent CPA-Prepared Business Tax Returns for FYE 2018 – FYE 2021, and the current CIP Schedule, fully documenting the Future Revenue Stream; also to be released to Pre-Qualified Buyers.
This BVR was ordered through the Firm’s Participating SBA 7a) Lender, who is committed to providing a Qualified Buyer no less than $815K (80%) of the $890K Purchase Price, plus $130K in Estimated Working Capital / Closing Costs. The Buyer’s Equity Contribution is limited to $204K (20%) of the $1,202K Total Project Costs. SBA provides a very favorable and fully-amortizing 10 Year Term on the $815K (80%) financing. Based thereon, the Company’s Adjusted Cash Flow to Service the SBA Debt is 2x (Industry-Standard 1.25x), while providing the Buyer a 52% ROI on the 20% Equity Contribution in Year 1 alone. These numbers are reflected in the BVR’s Purchase Justification Test for the established $890,000 Business Value.
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