Attractively priced multi-family and ceramic tile and painting contractor with excellent reputation and solidly established customer base. Real estate available (2100 square foot office and 2700 square foot warehouse) with business offering priced separately. Business offering excellent fit for absentee investor, existing contractor with complimenting skilled services, commercial or residential contractor expanding to multi-family.
| Listing No: MBFS-620105255 | |
| | |
| Category | : | Construction | SIC | : | 1721 | |
| Detail | : | Contractor Painting | Price | : | 115,000 | |
| County | : | Harris | Down | : | 17,250 | |
| State/Prov | : | Texas | Adj Net | : | 90,966 | |
| Country | : | USA | Sales | : | 1,360,000 | |
| Reason for Sale | : | Retiring |
| General Location | : | Houston |
| Organization Type | : | Corp 'C' Hours Owner Works: 40 |
| | : | Years Established: 16 Years Owned: 16 Emp FT: 3 Emp PT: 0 Mgrs: 2 |
| Non Compete | : | Miles: 0 Years: 0 Weeks Training: 8 Cost: 7500 |
| Operating dys/hrs | : | Mon-Fri 8am-5pm |
| Skills/Licenses | : | Understanding of contracting business |
| Business is | : | Relocatable: Y Home Based: N Franchise: N Lender P/Q: N |
A Dozen Due Diligence issues with General Contractors for Sale in Texas
In addition to financial matters, a buyer interested in a construction contractor for sale in Texas should consider discussing many of the following issues with the shop owner or their business broker:
How are cyclical sales handled?
Construction contractor revenues are often very dependent on new construction. New construction is subject to both seasonal and economic business cycles.
What is the owner's role in the business?
Must the buyer be licensed in any way or can a buyer operate successfully with general contacting management skills.
Is there any customer concentration?
While repeat customers are vital, having any single customer amount to more than 20% of sales represents a risk.
Has the company entered the government market?
This is a growing opportunity for construction contractors; however, it will require special marketing expertise.
How are skilled employees retained?
Skilled employees may be hard to find during periods of peak construction activity.
Are there opportunities for diversification?
Gross margins are higher where "total solutions" can be offered.
What is the split between residential, industrial, and commercial work?
Smaller construction contractors tend to specialize in a single market sector.
How are contracts priced?
General contracting can be priced in a variety of ways which affect both gross margin and risk.
Has the company invested in new equipment or technology?
What about the competition?
Where does new business come from?
Look for growing referrals from satisfied customers and steady business from projects.
Have insurance costs increased?
Rising insurance can significantly reduce gross margins.
How is the estimating done?
Profitability for larger contracts rests on accurate estimation and solid project management.
Resources for General Contractors for sale
The Associated General Contractors of America
The Associated General Contractors of Texas
Decorating and Painting Contractors of America
How to Conduct Market Research (SBA)
Frequent Questions about Texas Sales Tax
Confidentiality Policy
As business brokers, we protect the identities of the businesses, the business owners and prospective buyers until we receive completed, signed Confidentiality Agreements and personal or corporate financial statements providing proof of the buyer’s financial competence to meet the down payment. We understand that the sale and purchase of businesses must be held in the strictest confidence to give the involved principals the opportunity to advise employees, customers and others of the transfer when they feel the time is appropriate
For additional information contact Bob Fariss
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