UNDER CONTRACT Santa Fe Design/Build Firm

26 Mar UNDER CONTRACT Santa Fe Design/Build Firm

Posted at 15:02h in by Michael Greene

Price: $525,000

Location: Santa Fe & North Central Region, New Mexico

Industry: Building Trades

With a focus on the upper end residential market, this boutique design/build firm has demonstrated expertise in historic renovations, ranches, and estate properties. An integrated, multi-disciplinarian process provides clients with a cohesive vision, consistent communications, and effective oversight of all project aspects.

Personal referrals and repeat clients produce the majority of the firm’s business. Without any marketing or advertising, the firm currently has approximately $1.5 million-worth of projects on the books and is having to turn away work due to high demand.

This is an excellent opportunity for an up-and-coming general contractor, interior designer, or other professional in the design/build discipline to step into a reputable, profitable business, take advantage of existing demand, and enter the booming Santa Fe market with an established, prestige position. A strong crew and subcontractor relationships are in place.

The current owner is willing to consider staying on for a number of years to provide design and drafting services as well as to ensure a seamless hand-off of client and subcontractor relationships. This creates the space for the next owner to take over the client interactions, bidding, and subcontractor management. His proposed salary has already been backed out of the cash flow listed below, and revenue and cash flow are based on a weighted average of the last three years.

Unadjusted and Adjusted Seller’s Discretionary Earnings are presented below.

	SDE	Adjusted SDE*
*2018*	$227,237	$130,352
*2019*	$312,385	$215,501
*2020*	$345,530	$248,645

*Seller’s proposed salary has been backed out.

Listing Details

Revenue: $2,061,526

Cash Flow: $248,645

FFE: $40,000 (Included in Price)

Real Estate: (Not Included in Price)

Form of Ownership:

Corporation

Reason For Sale:

Ultimately, retirement.

Training & Support:

Seller will provide up to three weeks of full-time, on-site training as well as consider ongoing participation in the business.

Operation

Year Established: 1996

Year of Last Acquisition: 1996

Days & Hours of Operation: Monday - Friday, 8 am - 5 pm

Owner Hours Per Week: 40 hours

Employees: 6 FT, 1 PT

Managers: 1

Location

Security on Lease: Yes

Lease Option: Yes

Monthly Rent: $2,000

Square Footage: 1250

Relocatable?: No

Facilities Information:

Stylish and serene office that demonstrates the firm’s commitment to quality craftsmanship and design.

Summary

Owner Qualifications:

This is a position that is well-suited for someone who is either a seasoned building trades professional or in an earlier phase of his or her career. The new owner will need to hold a General Contractor’s license or hire someone who does. A new owner will ideally have experience with project management, client communication and sales, and be willing to learn the bidding and proposal development process.

Competition:

This business has a strong referral network, an impressive portfolio of work developed over the last quarter century, and is currently having to turn away potential projects.

Potential Growth:

Taking over the client, subcontractor, and project management will increase the studio’s capacity to handle more projects. Other opportunities to grow the business can be discussed upon receipt of an NDA.