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Opportunities

Construction Site Clean Up for 60K

Sold

CASH FLOW
$65,910

Specifications

  • Price
    $60,000

  • Cash Flow
    $65,910

  • Revenue
    $102,270

  • Reason for Sale
    Unable to devote time to growing business

  • Location
    Lincoln, NE

  • Equipment
    $10,000

  • Profit Margin
    64%

  • Employees
    2 contracted cleaners

  • Intangible Assets
    Reputation

Located in Lincoln, Nebraska with a solid 30-year-old reputation, this construction site clean-up company is listed for only $60,000. The current owners are absentee and earned a 64% profit margin in 2016, with 2 contracted cleaners completing the 2 to 4 jobs per month. Specializing in final cleans for new construction, jobs also include some restaurants and doctor’s offices on occasion.

The $10,000 in equipment includes a power scrubber, power washer, trailer, backpack vacuums and cleaning supplies. In 2016, the sellers had labor and supply expenses of $36,360, meaning cost of goods was a nice 35%. The two cleaners are paid $12/hour, but they sometimes earn a cut of the total job income for larger jobs.

This business runs solely on word of mouth, so with just some attention to advertising the potential for income and cash flow would be endless. A buyer should also consider expansion into the Omaha market, or continue to book as many jobs as possible in Lincoln. As the business comes with a power washer, some side income by power washing driveways and drive throughs would be a nice avenue.

Business Highlights

  • Years in Business: 30; current owners bought in August 2015
  • Location and Service Area: Lincoln, NE
  • Number of Clients: 2 to 4 jobs/month
  • Services: Window cleaning, bathrooms, vacuuming, floors, cabinetry, dusting
  • Reason for Selling: Do not have time to devote to growing the business
  • Employees: 2 contracted cleaners earning $12/hour
  • Hours: Vary by job
  • Seller Training Period: 90 days
  • Growth Opportunities: Expand into Omaha market, book more jobs, increase power washing services, advertise
  • Current Owner’s Responsibilities: Owners are absentee

Financial Highlights

  • List Price:                 $60,000
  • 2016 Gross Sales:      $102,270
  • 2016 Cash Flow:         $65,910
  • Profit Margin: 64%
  • $10,500 in Assets included in the purchase:
    • Equipment: Power scrubber, trailer, brooms, dust pans, backpack vacuums, dust mops, rags, power washer and cleaning supplies
    • Intangible Assets: Reputation

*amounts may vary

Cash Flow Analysis

  • 64% profit margin in 2016
  • COGS at 35% ($36,360) – labor and supply expense
  • $32,925 in sales during 2017 as of May 12th

Services & Pricing

  • Window cleaning
  • Bathroom cleaning
  • Vacuuming
  • Floors – scrub, mop, sweep
  • Dusting
  • Cabinetry cleaning

 

$0.18/sq. ft. for apartments

  • Jobs range from $300 - $7,000

$0.50/sq. ft. for power scrubbing

 

Most jobs take place after all construction has been completed but before tenants move in. Some sites do request cleaning to be done partway through the process and again at completion.

Employees

  • 2 contracted employees
    • $12/hour
    • For larger jobs, employees receive a percentage of total invoice
      • Usually between 30% and 40%

Market & Growth Outlook

Market

  • Nebraska has fared well in the economic downturn and has seen a healthy construction industry
  • Continued new construction means a good supply of jobs available for bidding

Growth

  • Market ongoing cleaning
    • Roughly 50% of jobs are final construction cleanup, and marketing to these clients for continued, regular cleaning would provide a steady stream of income
  • Bid more jobs
    • The current owners are unable to accommodate all job requests, but with the addition of one or two more teams of cleaners, these and other jobs could be handled
  • Increase power washing services
    • Power washing is a largely untapped market in the area
    • Ideal services for driveways and drive thru lanes
    • Would be useful for commercial buildings
  • Expand into Omaha market
    • There are few companies that specialize in strictly construction site cleaning
    • Omaha has seen the same robust construction industry as Lincoln and offers an even larger client base

Valuation Details

The Firm Business Brokerage used a Cost-to-Create methodology to determine the Purchase Price of the business. 

It would take far more time, energy and expense to recreate this business, its reputation and client base, than to purchase it for $60,000.

The Fair Market Value of this business is $60,000.

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Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.