MergerPlace

Gutter Sales and Installation

Wisconsin


  • Asking Price: $325,000
  • Gross Income: $423,476
  • Cash Flow: $140,648
  • Real Estate: Not Disclosed
  • Inventory: $10,000
  • FF&E: $34,200
  • Listing ID: #223792
  • Established: 2006
  • Employees: 4 FT

Business Description

History
The company was founded in 2006 and then sold to the current owners in late 2015. The company has revenue growth each year. Profitability is very consistent and is ahead of revenue growth. One owner does all of the sales, estimating, and installation scheduling and has a crew of 4 people that handle installation and repair work. One owner does some office and administrative work.

Lifestyle
One of the owners works actively in the business, about 50 hours a week Mid February - Mid November. The other owner does 10 hours a week of administrative work. The owners go out of state for the winter, from mid-November thru mid-February. The owner does some work from out of state part-time during the winter months, between the two they work 5 hours a week in the winter months. One of the installers will visit customers during the winter months to help with quoting work for the coming year. This business offers a very flexible lifestyle.

Overview
This company offers complete gutter installation, repair and drop-off services. Seamless gutters are custom built to fit the exact dimensions of a clients home. Seamless gutters offer easier maintenance and no leaking because there are no joints. They also custom-design downspouts for their clients to eliminate water saturation in areas that are prone to damage. They can also color match most homes current exterior colors. They have an excellent installation crew with years of experience.


Business Details

Primary Business Category: Construction - Building, Developing
Location: Wisconsin

Company Information

Year Established: 2006
Home Based: Yes
Franchise: No
Relocatable: Yes
Number of Employees: 4 FT

Financial Information

Asking Price: $325,000
Gross Revenue: $423,476
Cash Flow: $140,648
FF&E: $34,200
Inventory: $10,000
Seller Financing Available: No

Property Information

Facilities:

The business is run from the owners home. They rent a secure outdoor storage area to store the trailers, tools, inventory, and vehicles for the business. The lease is currently $350/month and is on a month to month lease that is expired. A new owner can negotiate a new lease, or move the business to a location of their choosing.

Growth & expansion opportunities:

The company currently only has one sales person (one of the owners) and a crew of 4 installers. They are typically have business booked out 8-12 weeks. A new owner could hire a sales person and a few more installers to grow the business. The company drives much of it's business from Google PPC campaigns, but only spends a flat dollar amount each month. Typically the budget is spent by the 2nd week of each month. Increasing this budget along with a larger installation crew can lead to more revenue and profits. Forging new relationships with other roofing and siding contractors can lead to more referral business. Gutter Guards are a growing product line for the business. It is an add-on product that adds a small fraction of cost to the client, but is highly profitable for the business. Since they are onsite doing the gutter installation, it only adds a small amount of labor to the total installation. Their gutter guards are of a higher quality, easier to install, and are a fraction of the cost of some of the large players in the industry. This has been a key to increased profitability for the business. It is an area the new owners can capitalize on. Another service that could be a potential for growth is "Drop-Off" services. Some contractors (both commercial and residential) will ask them to make gutters and then drop them off at a location for the contractor to install. Some contractors will also hire them to come onsite and make the gutters for them to spec. This is a low cost, high margin part of the business that could grow.

Competition:

There are no national home improvement gutter companies in the area. Below are a few of the most common competitors in the marketplace. Home Improvement stores Lowe's, Home Depot, and Menards offer gutter installation services. They contract with different companies to do their work and do not always offer a consistent level of service. Seamless Gutter Companies There are two other seamless gutter companies located in SE WI and offer similar services. Other Competitors Weathertight Home Exteriors, Infinity Roofing, LH Krueger and Son, and Rain Day Gutters, Windows, & Siding Co. are exterior remodelers that offer a variety of exterior service offerings but do not specialize in gutter installation and repairs.

Reason for selling:

Owners are retiring.

Support & Training:

Will train for 6 weeks @ no cost Products/Services This company offers complete gutter installation, repair and drop-off services for residential and commercial customers. Seamless gutters are custom built to fit the exact dimensions of a clients house or commercial building. They also custom-design downspouts for their clients to eliminate water saturation in areas that are prone to damage. Their gutters and downspouts come in more than 40 colors to match the client's current colors if needed. They also offer Aluminum Fascia, Soffits, Window Trim, and Door Trim. They will also make custom gutters for contractors or DIY home owners. Sell and install a variety of gutter guards. Skills Required The ideal new owner will have sales and project management experience, great customer service skills, and employee management skills. Transition and Training The current owners are very vested in a new owner succeeding and growing the business. They are willing to train a new owner for 6 weeks (30 business days). One of the owners is also open to staying on and working as a commissioned sales person/estimator for a negotiated period of time to help grow the business and possibly train another sales person for the new ownership team.

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Business Listed By:

Patrick McAdams

Murphy Business Brokers