Aviation and Infrastructure Architecture Firm in Denver
Located in beautiful Colorado, this architecture firm is focused on creating healthy, dynamic, and productive environments. This highly specialized firm has the expertise and creative spirit to develop spaces that are not only beautiful, but are completed on time and have the highest return on investment for the client. With a focus on client satisfaction, this firm seeks to understand the specific mission and use of a project as well as how the business behind it works, to develop projects that meet all client needs and expectations, not just the creation of a physical space.
At the forefront of technology, this company recognizes that innovation is the best way to coordinate and collaborate with partners for accurate, clear communication. Utilizing Building Information Modeling and Virtual Design and Construction, this firm transforms the way projects are designed and managed. These approaches are integral to this company and have helped to increase efficiency as well as the client base.
This architecture firm is focused on four main areas of expertise: Aviation, Science & Technology, Infrastructure and Transit. These projects range in cost from $3,000 local projects to $125M developments across the nation. Projects include light rail, airport redesigns, enabling projects, university buildings, government laboratories, transit hubs, and multi-modal facilities. Projects are done with varying lead times from 2 weeks to 2 years. They also expertly manage multi-year contracts as well as those that take only months to complete proving that this successful company is adept and managing the needs of its clients.
- Year Established: 2005
- Location: Colorado with National clients
- Projects: Aviation, Infrastructure and Transit
- Current Clients: 42, not inclusive of subdivisions
- Lease: Beautiful 5,600 sq. ft. in Denver
- Reason for Selling: Retirement planning
- Employees: 3 Principals, 8 Project Managers and Captains, 2 Interns, 2 Support Staff
- Hours: M-F 8-6, flex schedules for most employees
- Seller Training Period: 1-2 years; 2 principals will remain 5+ years
- Growth Opportunities: Increase national clientele in major cities, expand services to increase local clientele
- Current Owner's Responsibilities: 25 hours/week; Less than 20% of the owners’ time is spent on billable work, which will be easily absorbed
- List Price: $2,760,000
- Gross Sales:
- 2017: $7,385,445
- 2016: $4,849,377
- 2015: $3,418,676
- 2014: $3,185,495
- Cash Flow:
- 2017: $1,117,094
- 2016: $713,380
- 2015: $242,358
- 2014: $466,161
- Assets Included in Purchase*
- Furniture, fixtures, & Equipment: $410,325
- Intangible Assets: Outstanding reputation, experienced staff, positive company culture
- A/R: $2,890,159
- Pipeline: $4M, but varies throughout the year
*amounts may vary
|Description of Financial Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$894,063||$524,243||$71,677||$294,865|
|Compensation to Owner||$183,979||$151,849||$135,063||$128,801|
|11% Tax on total W2 Salaries||$20,238||$16,703||$14,857||$14,168|
|Non-Business Telephone||$3,600||$3,600||$3,600||$3,600||$300/month on cell phones for owner/officers|
|Insurance Premiums for Owner: Health||$7,200||$7,200||$7,200||$7,200||$300/month on cell phones for owner/officers|
|Insurance Premiums for Owner: Life||$1,536||$1,536||$1,536||$1,536||$128/month for personal life|
|Insurance Premiums for Owner: Disability||$4,620||$4,620||$4,620||$4,620||$385/month for LT & ST disability|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,117,094||$713,380||$242,358||$466,161|
|Profit Margin||15.13 %||14.71 %||7.09 %||14.63 %|
- 52% growth since 2016!
Clients and Projects
- Universities and Schools
- Federal Government
- State Government
- Transit Authorities
- Testing Labs
- Radiological Pharmaceutical Labs
- Independent Architecture Clients
Science & Technology: 33%
Infrastructure and Transit: 33%
Clients in 2017: 25 new projects, 50+ active projects, 15 clients specific to projects that started in 2017
2017: 2/3 National work, 1/3 local work
2018 Projections: 2/3 Local work, 1/3 national work
Duration: Range from 3 months to 5 years
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Building Information Modeling (BIM)
- Virtual Design and Construction (VDC)
- Architectural Design
- Project Management
- Master Planning
- Collaborative Planning
- Subcontracted Architecture
- Interior and Exterior Architecture
- Systems Integration
- Cost Estimating
- 3D Imaging
- 3D Models
- Virtual Tours
- Principals (4)
- Provides direction for company
- Manages process
- Client ROI oversight
- Ensure licensure and certifications
- Manages staff
- Disseminates work tasks
- Architects (8)
- (2) Principals
- (1) Associate
- Project Managers (1)
- Job Captains (9)
- Office Staff (2)
- Handles administrative duties
- Interns (2)
- Not yet licensed architects, but still billable
Individuals have been with the company from 2-11+ years.
Of the employees, 4 are non-revenue generating while 18 are revenue generating.
- Increase national clientele in major cities
- Expand services to increase local clientele
- Continue building relationships with the current client base for additional projects
The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 3-Year Average Cash Flow was used with a prescribed multiple is 4. With this information, the computation is as follows:
$690,944 x 4 = $2,763,776
The Fair Market Value found above positions the business List Price at $2,760,000.
Purchase Price: $2,760,000
15% Buyer Down Payment: $414,000
30% Seller Financing: $828,000
55% Bank Loan: $1,518,000
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $15,436.
Bank Loan 8-year term at a rate of 6% equals a monthly loan payment of $19,949.
After business expenses and loan payments, a buyer with a 15% down payment of $414,000 would retain a profit of $692,473, which results in a 167% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $2,760,000 with the terms listed above, the coverage ratio is 2.63.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2017 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2017 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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