Established Omaha Roof Installation & Replacement
Well-recognized in the Omaha area for exceptional roofing installation and repair, this established company provides excellent services to commercial and industrial customers within a 100-mile radius of the city. Included in the purchase is the accounts receivable, currently sitting at $500k, as well as the upcoming secured work and work in progress totaling over $1M. Working on single ply, flat roofs as well as standing seam metal roofs, this team can also attend to secondary needs that result from roofing projects such as siding repair, flashing, trim, and related sheet metal work. Utilizing their 14 employees as well as reliable and insured subcontractors, the team is well-trained and responsible for high-quality workmanship.
Work done by this company is completed for individual customers as well as in partnership with general contractors. They also complete warranty repair work on roofs that they install as well as repair work on non-warrantied roofs installed by others.
This business is currently located in a 12,500-square foot building with offices, a warehouse, and metal shop. This building is currently owned by the company and is available for negotiated continued lease after the sale.
- Year Established: 1967
- Location: Omaha, NE
- Service Area: Within 100 miles of Omaha, NE
- Services: Commercial and industrial roof installation and repair
- Types: single ply flat (EPDM, TPO, SBS) and standing seam metal
- Building: 12,500 sq. ft.: offices, break room, metal shop, open warehouse
- Reason for Selling: Life change
- Employees: 14: Estimator (1), Office Manager (1), Superintendent (1), Project Manager (1), Asst. Project Manager (1), Field (9), subs as well
- Hours: M-F 7:30-4:00
- Seller Training Period: 90 days transition
- Growth Opportunities: Expand roof repairs, increase crew, add sales representative
- Current Owner’s Responsibilities: Owner 1: General manager, financial oversight; Owner 2: IT, repairs
· List Price: $955,000
· Gross Sales:
- o 2018: $1,894,549
- o 2017: $2,314,304
- o 2016: $2,770,269
- o 2015: $1,631,270
- o 2014: $2,072,348
· Cash Flow:
- o 2018: $374,950
- o 2017: $331,888
- o 2016: $179,841
- o 2015: $161,169
- o 2014: $240,060
Assets Included in Purchase*
- Equipment: $205,829: Crane, many tools, FF&E
- Vehicles: $118,200: 7 vehicles
- Inventory: $92,154: Materials, uniforms, etc.
- A/R: $500,000+
- Work in Progress: $925,000+
- Secured Work: $185,000+ *amounts may vary
- Intangible Assets: Established business, well-recognized name, long-standing relationships with customers
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$247,994||$107,291||$353||$37,743||$128,604|
|Compensation to Owner||$33,750||$33,550||$24,200||$0||$0||Owner 1|
|Other unrelated Salaries||$33,750||$32,750||$28,950||$0||$0||Owner 2|
|11% Tax on total W2 Salaries||$7,425||$7,293||$5,847||$0||$0|
|Meals & Entertainment||$0||$0||$0||$1,345||$3,019|
|Personal Insurance||$16,659||$16,585||$16,450||$15,500||$15,325||Health, life, dental, and aflac|
|Seller's Cash Flow = Total Addbacks + Net Income||$374,950||$331,888||$179,841||$161,169||$240,060|
|Profit Margin||19.79 %||14.34 %||6.49 %||9.88 %||11.58 %|
- 2018 showed a growth of profit of profit margin to 20%
Clients and Services
- Clients are commercial and industrial businesses with flat, single ply or standing metal seam roofs.
- 75% of work is done for general contractors
- Single-ply flat roof installation
- Standing metal seam roof installation
- Warranty repairs
- Non-warranty repairs
- New construction
- Leak repairs
- Maintenance and inspections
- Related sheet metal work
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Estimator (1)
- Office Manager (1)
- Superintendent (1)
- Project Manager (1)
- Asst. Project Manager (1)
- Field (9)
- Warehouse (1 expected)
- Insured, well-trained, and reliable subcontractors are utilized as needed
- Expand roof repair services
- Increase crew
- Add sales representative
- Increase maintenance program participation
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 2018 Cash Flow was used with a prescribed multiple is 2.55. With this information, the computation is as follows:
$374,950 x 2.55 = $956,122
The Fair Market Value found above positions the business List Price at $955,000.
Purchase Price: $955,000
15%Buyer Down Payment: $143,250
15%Seller Financing: $143,250
70%Bank Loan: $668,500
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $2,685.
Bank Loan 8-year term at a rate of 6% equals a monthly loan payment of $8,785.
After business expenses and loan payments, a buyer with a 15% down payment of $143,250 would retain a profit of $237,482 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 $955,000 with the terms listed above, the coverage ratio is 2.4.
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.
2018 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2018 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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