Summary: 
Successful General Contractor offering a cost plus fixed management fee
Business Type: 
industrial
Location: 
Nebraska
Price: 
$1,014,000
Sales Revenue: 
$1,423,223
Cash Flow: 
$281,914
Realestate Included: 
No
Employees: 
5
Internal Listing:: 
CON018
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
Valuation:
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

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