MergerPlace

Acoustical Materials & Construction

South Dakota


  • Asking Price: $340,000
  • Gross Income: $1,699,327
  • Cash Flow: $155,183
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $90,000
  • Listing ID: #207210
  • Established: 1928
  • Employees: 7 FT

Business Description

This business is a premier supplier and installer of acoustical material, insulation and related specialty finishes with sales averaging in excess of $2MM for the past three years. The business was founded in 1928 and purchased by the current owner in 1979.
The business has experienced fluctuating sales over the past three years largely due to the long-term health issues of its former owner. During the illness, the owner ensured that the operations continued but was unable to devote the time and energy needed to grow and expand the business. The successful buyer will capitalize on the solid infrastructure, seasoned staff and high-quality service that the company provides to quickly increase sales and improve profits.


Business Details

Primary Business Category: Contractors - Special Trade
Location: South Dakota

Company Information

Year Established: 1928
Home Based: No
Franchise: No
Relocatable: Yes
Number of Employees: 7 FT

Financial Information

Asking Price: $340,000
Gross Revenue: $1,699,327
Cash Flow: $155,183
FF&E: $90,000
Seller Financing Available: Yes

Property Information

Facilities:

The business operates out of a 7,500 square feet building on 21,000 square feet lot. The building was built in 1965 and encompasses office, shop and warehouse. The facilities are owned and leased back to the company. The building’s interior has nice office space that could use some minor updating. There is a grade-level overhead door that provides access to the warehouse area. There is also a loading ramp on the inside of the warehouse. Real Estate is not included in the selling price but is available for purchase if desired.

Growth & expansion opportunities:

The business presents an excellent acquisition opportunity for a strategic buyer to acquire a turn-key acoustical tile distribution and installation company in the Midwest. Key elements that will benefit the successful buyer include: - Identified growth and expansion opportunities requiring little capital investment - Ability to expand existing product lines - Opportunity for geographic expansion - Product line expansion - Seasoned operational and managerial staff

Competition:

Competitors include contractors, retailers and wholesalers. On the contracting side, key competitors are limited to a handful of local and regional players. For the building supply side, the primary competitors are “big box” stores.

Reason for selling:

Owner would like to retire.

Support & Training:

Will train for 4 weeks @ no cost. The business primarily sells and installs acoustical ceiling tiles with ancillary revenues from wall panels and miscellaneous products. There is some seasonality to the business’s revenues as a large number of school-related projects (both remodels and new construction) occur during the summer months. The business offers two major brands. This give the business the ability to provide extensive high-quality solutions for commercial, industrial and residential projects.

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Business Listed By:

Josh Grode Wolters

Murphy Business Brokers