The company was founded in 2006 and then sold to the current owners in late 2015. The original owner started the company as a side hustle to compliment another company he owned. The current owners have turned it into a full-time business that supports itself. The company has seen revenue growth each year since 2015. Profitability is very good. One owner does all of the sales, estimating, and installation scheduling and has a crew of 3-4 people that handle installation and repair work. One owner does some office and administrative work.
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.
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.
Booked Business for 2021
There is approximately $55,000 in business booked to start in 2021 once the weather permits.
Lender Approved -
A lender has pre-qualified this for the right buyer (with industry experience) with a 15% down payment.
CARES ACT -
Under the CARES Act as revised by the Stimulus Act, if you use an SBA 7(a) guaranteed loan, this company qualifies for 3-months of principal and interest paid by the SBA to the lender on your behalf (up to $9,000/month), for a total savings of 3x the monthly payment (max of $36,000). The loan payments paid by the SBA are not taxable. The SBA is also waiving its loan guarantee fee. The SBA guaranteed loan must be approved by the SBA before 9/30/2021, or earlier if funds run out.
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.
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.
The industry is fragmented. They have a few direct competitors that only install gutters. There are a few roofing companies that also install gutters, but many buy them from distributors at a much higher cost.
Owners are retiring.
Will train for 6 weeks @ no cost The current owners are vested in a new owner succeeding and growing the business. They are willing to train a new owner for at least 6 weeks. One of the owners is also willing to staying on and working as a commissioned salesperson/estimator for a negotiated period to help grow the business and train another salesperson/estimator for the new ownership team. One of the installation crew is currently helping with this during the winter months, while the owners are out of state.