Successful General Contractor offering a cost plus fixed management fee
Business Type: 
Sales Revenue: 
Cash Flow: 
Realestate Included: 
Internal Listing:: 
Reason for Sale: 
Launching concept Nationally

Successful General Contracting business with cost plus fixed
management fee has nearly a decade of proven track record with
this “no hidden price” structure. Current owner spends about 10
hours a week on business oversight. His reason for sale is that he is
launching this successful GC concept in a franchise model nationally.
His knowledgeable lead Project Manager and Estimator keep the
business revenues flowing in. With 4 vehicles. 3 Lot Deposits, AR of
over $90,000 and a Backlog of over $220,000 and Work In Progress
of over $480,000 this business is the definition of turnkey. They also
have a showroom for the most elite clients to come select floor plans
from their 30+ proprietary designs. An on-staff Interior Designer
works with clients during selective phase at no additional charge. For
these clients building homes between $350,000-$5MM the Fixed
Fee + Actual Cost Bases takes the pain out of custom home building.
Profit Margin in 2013 and 2014 were within one point of each other,
hovering at 14%, which is normal for a business of this kind. There is
over $534,720 in assets to help collateralize the business loan. The
number of homes sold by this design, build and deliver contractor
has grown by 28%. There are 3 spec homes in the backlog with a
potential profit of $316,313. Average cash flow for 2013 and 2014
was $281,914 due to timing of large individual revenue streams.
The Seller is willing to transition for up to 6 months. This Nebraska
location will become the model for all other territories. It is in the
Seller’s best interest to ensure new Owner’s success. There will be a
Grandfather Clause and no royalties will ever be taken but new
Owner will share in the benefits of National marketing.

Financial Overview
List Price: $1,014,000
Gross Management Fees:
2014: $1,423,223
Owner Profit/Cash Flow
2015: $424,917 annualized
2014: $197,564
Completed Custom Built Homes
2015: $26MM+
2014: $20MM+
2014 Profit Margin: 14%
Cash Flow Trend: Annualized 2015 cash flow = $424,917,
representing an increase greater than $227,000 over 2014
Multiple: 3.6
2 Year Average Cash Flow x Multiple = Fair Market Value
$281,914 x 3.6 = $1,014,890

Assets Included in Purchase: $534,720
Equipment: $79,335
Vehicles: $139,949 (2 trucks and 2 SUVs)
Lot Deposits: $223,268 (3 lots in exclusive community
neighborhood in West Central Omaha)
Accounts Receivable: $92,168
Intangible Assets: 60 Custom Floor Plan Designs - $4,000/each
= $240,000
Backlog: $220,704 (4 spec homes)
Work In Progress: $483,676
*values may vary
Business Information
Years in Business: 9
Location: Omaha, NE
Service Area: Right to entire state – currently focusing on only
Omaha and surrounding areas
Clients: Custom home builders: $350,000 to $5 million
Lease: $2700 per month office space in SW Omaha
Reason for Selling: Launching concept Nationally
Employees: 2 W2 (lead Project Manager and Estimator) 3
1099(Project Manager, Interior Designer and Bookkeeper)
Hours: Office open Monday – Saturday 8:00 to 5:00
Seller Training Period: 3 to 6 months with ongoing support
Growth Opportunities: Sales throughout the state
Current Owner’s Responsibilities: Business oversight for about
10 hours/week

Funding Example
Purchase Price: $1,014,000
15% Buyer Down Payment: $152,100
20% Seller Financing: $202,800
65% Bank Loan: $659,100
Return on Investment (ROI) of the original 15% Down Payment
from Buyer in year one would be 89% as well as providing a Net
Operating Income (NOI) after all business expenses and loan
payments are made of $135,367 in year one

Contact The Author of This Listing

Please include your contact info (Phone Number, Address, etc) and other important information.
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
1 + 4 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.
By submitting this form, you accept the Mollom privacy policy.