***COVID-19 Impact Statement: The Company is/was minimally operational due to the shelter-in-place order. As soon as the order is lifted for construction, the Company will be out getting the job done. Ownership projects a 10% decline in revenue; however, no jobs have been canceled, and ownership is optimistic for a V-shaped recovery!***
This profitable and established Business is a siding and home exterior services provider serving the greater metro Detroit area. The Company is a certified Elite Preferred Contractor for James Hardie® siding, which means the Company is one of only a handful of siding contractors in Michigan that is qualified and trained by James Hardie®. Therefore, the Company’s customers are not only getting the highest quality siding but the highest standard of workmanship and installation. In addition to siding, the Company is a primary contractor for roofing, windows, exterior painting, doors, repairs/maintenance, and specialty exterior services, for example, chimney caps, porches, shutters, gutters, brick tuckpointing and repair, specialty vents, accent trims, and pre-finished cedar siding.
The Company has implemented a strong management backbone and marketing/sales infrastructure to stand out in a residential construction and remodeling industry, where most companies do not invest in operational efficiencies, technology, or strategic systems. The Company has grown to 22 employees with a strong management team of four managers supporting the owner with production, service, and office administration. Along with stable personnel infrastructure, the Company has implemented robust marketing systems, which includes distributing postcards to customers and prospects, creating email drip campaigns to stay on top of customers’/prospects’ minds, customer follow-up phone calls, and a polished/detailed website outlining the Company’s services, culture, and expertise. Additionally, the Company uses a third-party Internet marketing company and focuses on Google AdWords to strengthen the Company’s presence on Google. To manage the Company’s customer base effectively, the Company utilizes a comprehensive CRM system, MarketSharp. These software, technology, and marketing initiatives keep new customers coming in the door and lead to excellent customer reviews on GuildQuality, Google, Facebook, Angie’s List, HomeAdvisor, and Houzz (4.5-star average).
The owner began working in the construction trades at the age of 19. He worked as a laborer, a rough and finish carpenter, and at many other on-site jobs. He got his Michigan Builder’s License and started the Company in 1991, building on his hands-on experience and his desire to create a high-quality and successful company. The Company has grown over the years to include multiple carpenters, painters, an exterior service department, and a full-time office and production staff. The Company owns a showroom and office space and leases an office/warehouse space in another location, as well.
The owner owns 100% of the Business. He has built a reliable and stable employee management team to help effectively operate the Company. He works around 20 hours per week, mainly helping troubleshoot internal or project problems, making major financial decisions, implementing system changes, and general upkeep. Additionally, the owner manages the Company’s sales team; however, he recognizes that he spends minimal effort with sales. The owner believes that a sales manager that is strictly focused on sales efforts could help the Company reach its growth goals over the next couple of years. After operating the Company for 29 years, the owner would like to retire and enjoy more time with his family. The owner is willing to provide reasonable and customary transition assistance. He is confident that a skilled and reliable management team is in place to help run the two locations and execute jobs post-transition.
Buyers will be required to have a minimum of $300,000, solid credit, and industry or related experience to qualify for SBA 7a financing.
Facilities: The Company owns a 4,900 sq. ft. facility and leases a 3,000 sq. ft. facility.
Support/Training: Ownership is willing to provide reasonable and customary transition assistance.
Reason for Sale: Ownership would like to transition into retirement.
Financial Strength and Growth: The Company has performed profitably, providing consistent and robust cash flow for reinvestment and the general satisfaction of the owner.
Longstanding Reputation and Name Recognition: The Company was established in 1991 and has built a longstanding reputation within the greater Detroit area, specifically Ann Arbor, South Lyon, Rochester Hills, and Troy. The Company is a name brand within the residential exterior remodeling space that has been built on the principals of quality craftmanship, services, and products, as well as a friendly, professional staff that always puts the Company’s customers first.
Elite Preferred Contractor for James Hardie®: The Company is the go-to siding contractor in Southeast Michigan, primarily due to its quality siding products and premium choices. James Hardie® is among the highest quality siding available, and customers believe that it is one of the best investments to make for their house. The Company is one of few preferred installers with James Hardie® and has represented the brand for a long time. The Company is the number one James Hardie® installer in the state of Michigan.
Advanced Systems and Stable Workforce: Most residential exterior remodeling companies have no systems, software, or technology in place to increase efficiencies and cut operating expenses. However, the Company has created a backbone of processes and systems that allow the Company to be efficient and produce quality products and services while retaining personnel and developing a reputable culture.
Residential Exterior Remodeling One-Stop-Shop: The Company’s primary product offering is residential siding; however, the Company specializes in a plethora of additional products and services that make it a one-stop-shop for its customers (especially customers that would like to remodel multiple items on the exterior of their house).
Obtain Additional Market Share with Windows and Roofing Business: In 2019, the Company did almost $850K in the roofing business and $350K in windows business without trying hard to push this type of work with its customers. Both product/service lines increased in 2019 from 2018, and roofing almost doubled its sales during this span. By leading with the Company’s longstanding reputation for quality products, friendly service, and affordable prices, the Company could easily double or triple the business that is currently being done through these two products/services, significantly increasing the Company’s overall sales each year.
Focus More on Repair and Maintenance Jobs: To reach $10M-$20M in sales, the Company could focus on smaller repair and maintenance jobs. These jobs are $5K-$6K jobs that have incredibly high margins (usually 60%+). Plus, these jobs are typically turned around in 2-3 days, as opposed to full siding, roofing, and window installations that can take 1-2 weeks to complete. The Company could increase this business through HomeAdvisor, Google, and Facebook as they are currently stable lead sources for the Company. The Company specializes in many small repair and maintenance jobs such as gutter cleaning and repairs, door repairs, chimney caps, flashing repairs, and many more.
Hire a Full-Time Sales Manager to Drive Additional Sales Growth: Currently, the owner is the acting sales manager of the Company – loosely managing the Company’s sales team and monitoring Company-wide sales goals. Although the Company’s salespeople are independent and follow a motivating compensation structure, the Company could benefit from a dedicated, full-time sales manager. A full-time sales manager could drive his or her own sales goals and implement a sales strategy from the top/down, further increasing the Company’s top-line.
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