This fully licensed building contractor, located on one of Hawaii’s beautiful islands, has become one of the most preferred and largest providers of expert environmental and hazardous removal services to the construction industry in its Hawaii market. They provide expert abatement and removal and also remodeling, renovation and restoration services for residential, commercial, industrial and government properties. They are fully licensed, bonded and insured and certified by the State of Hawaii to provide abatement and removal services for a variety of hazardous materials. Their professional staff have the required training and certification to ensure that the removal is conducted according to all state and federal regulations.
They believe they have a share approaching 50% in their market and this is driven by their superior work, excellent “word-of-mouth” referrals and recommendations from their many satisfied customers.
They sales are growing very rapidly, for example, during the most recent 12 months, ending September 2018, their sales were over $852,000, up 72% versus the prior 12-month period, and they expect a strong growth trend to continue. The market is robust due to the need to remediate a large number of properties built in the 1970’s and 1980’s; and, they have become a preferred contractor in this market.
Key Investment Highlights are:
• Very high market growth due to aging old construction (Hawaii had a residential and commercial building boom in the 1960’s, 70’s and 80’s which now requires hazmat remediation in many cases)
• High moisture levels in Hawaii often result in mold
• High profit margins and growing market share
• Excellent business reputation
• Limited Direct Competition
A Hawaii contractor’s license is required, and the current owner will provide his license for a reasonable period after the sale.
The business is being offered for sale on a fully turnkey basis because the owner is retiring. He will provide a non-compete agreement and training/orientation for the buyer.
The big growth in Hawaii construction began in the 1970s (hotels, condos, schools, government buildings, utilities, etc.) and now many of these older buildings require remediation and renovation due to asbestos, lead, mold, etc. In addition, there is more of an awareness of the health issues associated with old building materials and mold, etc. and a demand to remediate these. They see significant growth as these older buildings have to be remediated. Many buildings constructed before 1986 have asbestos or other hazardous materials which need to be removed and remediated. The Company only works on one of the Hawaii Islands and believes that there would be excellent growth opportunity in the other Hawaii islands for their services.