Foundation Repair Company–Owner Moved On

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This Foundation Repair company serves the entire KC area and surrounding suburbs and is centrally located. The company specializes in piering, wall bracing, wall straightening, tear out and replacement of foundation walls, crack injection, sump pumps, drain tile, exterior drainage, concrete, retaining walls, grading, and landscaping.

Piering moves the weight of foundation from unstable/sinking soil to fixed bedrock through the use of push piers. The company uses Stabil-Loc® Piering Systems.

Wall Deflection repairs the inward movement of basement walls due to increasing hydrostatic pressure with various techniques for various problems, including Deadman Anchor Systems, bracing with steel I-beams and other wall restraints, installation of wall restraints and total removal and replacement of a home’s foundation walls.

Sump pumps and drain tile systems used to create a place for water to run to keep any water damage from occurring to basements or foundations.

Exterior Drainage and Egress Windows using French drains, downspout extensions, window-well replacement, window well drainage, terrain correction/grading, burms or swales.

The owner is rehabbing houses and hardly works this business.  He wants to sell to someone so it can be built back up. As is–part time–he is making 100K a year. A new owner can easily get it to 300K or more.

Asking Price: $225,000

Gross Income: $1,050,000

Cash Flow: $100,000

Employees: 15

Established: 2007

Furniture, Fixtures, and Equipment ( FF&E): $50,000, included in asking price.

Facilities: Facilities are leased but lease is inexpensive if now owner wants to stay there.

Competition: The business pricing is very competitive but a new owner could raise rates a bit and still be extremely competitive. This company beats the competition on referrals. They’ve established great trust with the real estate industry so most of their business comes from RE referrals. Homeowners also refer them because of their attention to any problems. They are probably the most conscientious foundation repair company in the KC area and customer satisfaction is a testament to the fact that they work with the client until everyone is satisfied.

Growth & Expenses: Massive potential. The company brought in seven figures last year with the owner only working part time. The owner currently pays extra employees to do some of the things he could do. There are lots of areas where expenditures could be saved as income instead of expense if a new owner wanted to give the business full time attention. 95% of their business comes from referrals. The company website and people actively seeking accounts for the rest of the business. If it looks like things might slow down, the owner sends out an email blast to his email list of real estate professionals and past customers. He rarely has to resort to that.

Support and Training: The owner is willing to stay as long as needed for the new owner to learn the business, probably 90 days of training will make a smooth transition.

Reason for Selling: Owner wants to rehab houses full time.

Inventory: $5000, included in asking price.