Premier Residential Construction Company in Northern Michigan

This is a fantastic opportunity to acquire a long-standing commercial/residential general contractor in one of the top 5 fastest-growing areas of Michigan.

Founded in 1994, this Company has earned its reputation as one of the premier general contracting businesses in Northern Michigan. The Company operates in commercial general contracting, specialty trade packages, and residential services. The Company has the expertise to tackle any residential or commercial project.

Over its two and a half decades in operation, the Company has built a crew that is respected for being highly-skilled and knowledgeable by training their employees in compliance with OSHA (Occupational Safety and Health Administration) guidelines. The Company is known for providing high-quality products that are consistently completed on schedule. The Company is well regarded by its customers, as well as local architects and subcontractors, who are always paid on time.

After running the Company for 27 years, the Founder and his spouse (Co-owners) are seeking to sell the Company in order to retire and spend their winters in a warmer climate.

The Business is currently operating out of a 30-foot x 24-foot facility on the Owners’ property, which will not transfer with the Company. However, to date, the Company’s overhead has been kept low, which could continue through new ownership.

In 2020, Houzz released a report that stated a 58% annual increase in project leads for home professionals; 52% annual increase in home extensions and additions; 40% annual increase in kitchen and bath remodeling; and 166% annual increase in security and privacy-related construction. These trends bode well for the new owner(s) coming into a growing industry and company.

Additional Information

2020 EBITDA: $106,991

Real Estate: Owned—The facility is a 30-foot x 24-foot building on the Owners’ personal property that will not be sold with the Business.

2020 Rent: $11,607

Total Building Size:  720 square feet

Seller Financing Available: Yes

Seller Note: Limited Seller-Financing Available for Qualified Buyers.

Investment Highlights

(1) Well-Established Company with a Strong Reputation: With over 27 years in the industry, the Company thrives on its culture, emphasizing the timeliness and quality of its projects. This is accomplished by attracting and maintain a top-tier workforce. The Company extensively trains each employee, ensuring that they have the skills and knowledge to produce top-quality products. This training is completed in compliance with OSHA safety guidelines that keep the employees safe in the field and minimize time lost from injuries on projects. This reputation is seen with both customers and industry professionals, who frequently refer new business to the Company.

(2) Debt-Free Business Model: The Company operates on a debt-free basis. The Company has little to no debt and has always operated debt-free by continually holding enough cash to complete $2M worth of projects. They have a revolving loan that is rarely used, but in the case of cash flow shortfalls, the loan is utilized and paid off as the project pays off.

(3) Culture Focused on Sustainability: The Company has always been committed to sustainable construction. They respect the environment and provide a safe and healthy culture for the employees and customers alike. To show commitment to that principle, the Founder has earned his LEED (Leadership in Energy and Environmental Design) accreditation. LEED is an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built using strategies aimed at providing sustainable performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.

(4) Resilience Through COVID-19: Despite the COVID-19 pandemic, the Company was able to grow its revenue. The Company operates in an area that services many vacationers and retirees who are not usually impacted by economic downturns. When the state of Michigan was shut down in 2020, people were forced to spend time in their homes, creating an influx in remodeling demand.

Growth Opportunities

(1) Population Growth in Northern Michigan: In addition to the increase in demand caused by the pandemic, the Company’s service area has been gaining popularity and is flourishing economically. The Company serves one of the fastest-growing counties in the state of Michigan. With the increase in population, new companies are moving north in Michigan and need new buildings or updates to existing buildings. Housing is becoming scarce, and most of the schools and commercial buildings need renovation. With a good reputation amongst the local subcontractors and top-of-the-line training practices, the Company will have no shortage of good workers to meet this new demand.

(2) Open a Home Design Division: The Company does not currently accept “off the street” business because that would require the Company to have its own design people, which is not something that the current Owners are interested in. The Company is gaining notoriety in the building of high-end homes. With an in-house architect, the new owner(s) could open a residential design/remodel division, the services of which would be in high demand.

(3) Drive Demand Through Online Presence: The Company currently generates most of its business through its reputation, word-of-mouth, and referrals. An increase in online presence could be a significant opportunity for generating new business. The Company does not have a presence on social media or any general contractor review website. The Company’s current website serves its purpose, but with the addition of a home design division, the website could be revamped to look more modern and to properly showcase the Company’s abilities.

The BEST way to receive confidential information about this opportunity is to fill out the form below.

Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this Premier Northern Michigan Commercial and Residential General Contractor for sale!

*Special Note: In a victory for small business buyers, the recent $900BB stimulus bill directs the SBA to waive all guaranty fees and pay up to the first 3 months of new SBA 7(a) loans approved between February 1 and September 30, 2021 (up to $9,000/month). Our advice: Don’t wait. Find a quality business and get moving quickly. Banks will be busy this year and buyers that wait until July/August will likely lose out.

Financial Performance

  • Year End Dec 2020 Revenue

    $2,231,062

  • Year End Dec 2020 Adjusted EBITDA

    $277,635

  • Equipment Value

    $209,546





I'm Interested!

Please fill out this form and we will get in touch with you shortly.

 





 



For this opportunity our client is asking for a little background on each buyer before releasing information. Please briefly answer the questions below:

 


 


 


 


For the next questions hold CTRL or SHIFT to multi-select

What industries are you interested in? (select all applicable)

What EBITDA interests you? (select all applicable)

Please designate your affiliation

 




Receive new business-for-sale notifications instantly!

Subscribe to receive new opportunities!

 
 
For the next two questions hold CTRL or SHIFT to multi-select
 

Calder Capital, LLC