EOI - 01/06/2021
We are accepting offers! This established, predominately colorbond roofing business focusing on new residential buildings (70%) and repairs (30% split evenly between residential and commercial) is a must-own business for those that can manage staff, suppliers, and endless demand from customers.
The annual turnover is approximately $3,700,000 per year, with an owner's profit of $325,000 working a five-day week, 9 hours a day. The owner does not work weekends as he loves to fish and get down the South Coast.
The cost of goods is about 40% or $1,500,000; and contractors and installers wages are about 35% or $1,300,000. There is a mix of paid employees and sub-contractors that do the installs.
To attract staff, he provides them with a vehicle guaranteed to leave bonus and three weeks Xmas shut down.
He has negotiated 14-day payment terms for builders and seven days terms for homeowners. You will need about $250,000 working capital to run the business.
The owner focuses on working managing jobs and has automated the quoting system spending $25,000 on a customised app you will get ownership of.
There is a small office staff consisting of:
• sales and orders coordinator - $75,000 plus car
• office, admin and finance - $55,000
• Quality checker part time - $30,000 per year
There is a leased small yard and office that costs about $50,000 per year. A few years back, he decided to rent an office to get work away from home, and he highly recommends it, but if you had 50sqm and a yard of 300sqm, you could run from home.
There are three utes and a truck and about $100,000 worth of equipment.
In terms of ongoing support, he's prepared to hang around for six months, 2 1/2 days a week, to help with pricing and troubleshooting.
There is guaranteed work in the pipeline, and all unfinished will be assigned to the new buyer.
He is asking $650,000 with 50% vendor finance over four years secured by residential property.
Contact construction sales business expert Frank Walmsley 0400446605