Front Range, Colorado. This business is selling for approx 1.5 Xs 2007 cash flow after you consider that the deal includes $450,000 of real estate + $250,000 in CASH! 2006-2008 revenue is over $11,000,000 and cash flow is $1,100,000 per tax returns and CPA financials. We have an $8,700,000 backlog for 2008 so far and we expect a net income of 1,200,000 for 2008 based upon current contracts. We are a service business that manages the construction of Banks, Hospitals, Super Targets, Med. Centers, Hotels, Retail Strip Malls, Schools, MRI Centers, etc. 2008 will bring $12,000,000 in sales and up to $1,500,000 in cash flow, most of which is already contracted! We have very clean books and no debt. We have never written off $1 from our customers in 10 years. All of our customers love us and pay us promptly. This says everything about our reputation and client relationships.
The forecast for our industry and region is expected to grow at 5-9% per year for the next 5 years. All of our work is negotiated, no hard bid work so we make our own pricing. Because we don?t do the construction ourselves, we don't get our margins squeezed by increases in commodities such as copper and lumber prices. We have the largest margins in the region at 20%. The owner has spent the past 4 years positioning the business for transfer. With regard to operations in the field and office, the business completely runs itself. 12 employees manage everything. The owner needs no construction experience; a business/marketing background is strongly preferred. The seller is 100% confident that sales and cash flow can double in 2-3 years if new owner simply takes on the work being asked of us. Currently we just cherry pick the most profitable work from our steady customers. There is tremendous demand for our niche building work. We have the highest level bonding in our market which allows us to get the best jobs. We have the best safety record and lowest injury history. Overall, we have the strongest reputation for fair-dealings and high quality work in the region. We are trusted and respected widely which has been critical to our success. Some of our customers use us exclusivity. Again, we do not do the construction; we are a service company that manages the jobs.