Founded in 1975 by a second-year carpenter apprentice and his spouse, this Company operates in the residential exterior and interior remodeling industry as one of the premier remodelers in Northern Illinois. The Company began with one line of vinyl replacement windows and steel entrance doors. Since then, the Company has grown to offer expanded window and door replacement options, as well as closet organizers, interior trim, retractable awnings, and louvered roofs. The Company was founded with the need for quality workmanship and products in mind and has carried that through its 40+ year history.
The Company is located in Northern Illinois and services customers within this region. The Company recognizes that home remodeling is a significant investment; that is why the Company has emphasized quality products and services that maximize home value. The Company’s staff of talented, experienced, and trained professionals ensures the customers will receive the highest quality service possible.
The Company has earned its reputation as a premier remodeler in Northern Illinois. This reputation allowed for a record year despite the COVID-19 pandemic. In 2020, The Company produced $2.4M+ in top-line revenue and approximately $350K in seller's discretionary earnings.
The Owners own the facility the Business currently operates out of. The building is 16,000 square feet and has an estimated value of $1,500,000. The Owners are open to selling or leasing the building to the new owner(s).
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The entire building is 16,000 square feet, with 8,000 square feet of warehouse space (heated and air-conditioned with a loading dock, 2 large overhead doors, wash bays, bathroom, and water softener), 4,000 square feet of showrooms, and 4,000 square feet of office space – including a conference room, kitchen, manager’s office, and two bathrooms. 1,800 square feet of the office space is leased to tenants, while the Company occupies the remaining 14,200 square feet of the building. The Owners are open to selling or leasing the facility to the new owner(s).
Growth Opportunities Include: (1) Expand Services and Workforce: To complement the Company’s window and door offerings, the Company can explore adding siding and roofing replacement services. Often, external fixtures like windows, doors, siding, and roofing are replaced at similar times. Additionally, the Company could seek expansion of its current services of custom office builds and garage storage solutions. These services are currently offered by the Company but are not large revenue producers. Adding and expanding these services could allow the Company to capture additional revenue for consumer expenditures in this sector. Hiring additional workers could allow the Company to increase its capacity and fulfill more jobs. (2) Industry Growth: The Company operates within the remodeling industry. With expected industry expansion over the next 5 years, this is a fantastic sector to buy into now to benefit from present and future industry expansion. Over the last 5 years (2015-2020), the remodeling industry has grown 1.7%, with 1.9% expected growth for the next 5 years (2020-2025). This is a long-standing industry and, as a result, has proven to be very stable while providing consistent growth in the range of 1.5% to 2.0% CAGR. Looking into the window installation industry specifically, there is growing optimism. While the industry only grew 0.3% over the past 5 years (2015-2020), there is a wide belief that the next 5 years (2020-2025) will be strong, with a projected 4.6% growth. Having planted itself as a leader in the market, the Company is well prepared and positioned to capture the industry’s growth well into the future. (3) Strategic Expansion: One of the best opportunities for the new owner(s) to grow is through geographic expansion. With over 40+ years in business, and a strong name and reputation, the Company’s success in its current region can be expected to translate well to new markets. The Owners have identified two areas as top targets for expansion. Each of these areas provides access to a new market and potential for revenue growth. The Owners believe with expansion to either of these markets, new ownership could expect to double the revenue volume of the Company.
Investment Highlights Include: (1) Long-Standing Company with Established Reputation: The Company was founded in 1975 on the value of quality. Whether it was sourcing quality products or the quality service and installation offered, the Company was focused on filling the community’s need for a quality residential remodeler. 40+ years later, and the Company has done just that. The Company has built a culture around quality and takes it into consideration with everything they do. The Company translates its strong reputation and established name into referrals. The Company’s high referral rate has allowed them to reach new customers without extensive marketing efforts. (2) Revenue and Cash Flow Growth Despite COVID-19: Despite the COVID-19 pandemic, the Company increased revenue from $2,189,497 in 2019 to $2,423,975 in 2020, and cash flow from $244,333 SDE in 2019 to $343,732 in 2020. Individuals have been spending more time at home due to the pandemic and because of this, they are spending more money on home renovations. The Company capitalized on this trend and turned the demand into additional revenue. The Company’s systems have proven to be scalable for growth. With the Company thriving through COVID, it shines as evidence that the Company is financially healthy and can sustain its margins even in crisis scenarios. (3) Wide Variety of Service Offerings: The wide variety of services offered opens the Company to a large market of potential customers. Infrastructure work like windows and doors is a large market and typically high-cost; finishing work like interior trim and closet organizers are more minor expenses; and retractable awnings and louvered roofs are exterior projects at a mid-level cost. The 6 types of services offered increase the Company’s potential for repeat customers. The Company provides a variety of interior and exterior remodeling services without utilizing subcontractors.
The Owners would like to retire.
Ownership is willing to provide reasonable and customary transition assistance.