Business Description

Amazing home services company, specializing in exterior installation of energy-efficient windows, solar panels, doors, roofing, and life paint. Subcontractor based model allows for little overhead and rapid scalability.

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Key Metrics

$1.4M 2023 revenue 

$115K 2023 SDE 

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Background

This exterior installation and contracting company was founded by industry veterans and has been a trusted name in the area for decades. The business leases a 9,000 square feet warehouse and adopts a subcontractor based model to streamline operations and enhance efficiency and flexibility. The owners have shifted to semi-retirement, resulting in a strategic reduction of projects which can easily be ramped up by new management. Owners are willing to train new owners for a transitionary period or stay on part-time. The two dedicated sales staff will stay on after transition. The company focuses on installation of energy-efficient windows, solar panels, doors, roofing, and life paint for residential properties. 

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Key business details

• Established Reputation: The company has built a strong reputation as a trusted provider of home improvement and is a regional brand name. 
• Steady revenue performance and profit margins: Despite a strategic slowdown in operations as owners have shifted into semi-retirement, the business has maintained a solid revenue stream and healthy profit margins. With a strong foundation in place, a new owner can quickly ramp up operations.
• Scalable subcontractor model: Independent contractor partners are used on a per-project basis, reducing fixed labor costs, allowing for job specialization, and making it easier to scale up the business with increased demand. 
• Low Advertising Expenses: The business experiences high demand with zero marketing. New customers are acquired through referrals, indicating high customer satisfaction and word-of-mouth marketing effectiveness.

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Growth opportunities

• Industry Tailwinds: The company operates in a dynamic and high-growth industry, positioned to capitalize on the increasing demand for energy-efficient home improvement solutions. 
• Business development: Focusing efforts on visibility and marketing, bolstering online presence, and conducting advertising campaigns, can enhance visibility and attract new potential clients.
• Geographic Expansion: Expanding into neighboring regions or cities within Central California would reach a broader customer base.
• Sector Expansion: The company specializes in residential exteriors. Expanding services into the commercial sector by targeting businesses, property management firms, and commercial developments for exterior renovation projects presents significant growth potential.
• Vertical integration: Acquiring or partnering with companies in related services sectors, such as landscaping or interior renovation services, could help increase customer base at lower acquisition costs.