Painting Contractor with 85% Reccurring Clients

New York

Business Summary: This New York based industrial painting company receives approximately 40 projects a year in municipal infrastructure! Boasting an experienced team of over 90 employees, including 3 project managers, 8 foremen, more than 75 painters and 6 administrative employees, 15 years of quality work has resulted in strong relationships with general contractors and a competitive bidding process that brings in $500K - $1M per project. Included in the purchase is a current backlog of $73M and $2.8M of assets, which includes safety equipment, rigging, and supplies, plus $680K in trucks and trailers. The company’s services include industrial painting and site preparation for jobs such as bridges, tunnels, and transit stations. The company also offers lead abatement and shield integration, services which keep workflow high during the winter months. Service area is 90% in the state of New York and 10% in Pennsylvania, New Jersey, Delaware, and Ohio. Operations are managed from the Ohio office and supplies are stored in a New York area warehouse. There are additional field offices for each project where location-based staff report daily. Increasing capital to increase bonding capacity would certainly lead to growth in revenue, as well as expanding services to include outdoor painting of private buildings. Both owners currently work within the business. The majority owner focuses on financial oversight and business management and is willing to stay on for 20 hours a week during an 18 month transition period. The other owner is the lead estimator and oversees field operations, and he is willing to stay on with the company for several years after closing. The sellers are willing to roll equity for 12.5% of the purchase price, then do a seller carry for another 12.5% for a total of 25%, as a sign of good faith in the business.
Year Business was Established: 2005
Number of Employees: 90+
Facilities / Terms of Lease: Main office: 2,000 sq. ft.: 5 Offices, conference room; NY Warehouse: 5,000 sq. ft.: Storage, office
Potential Growth/Expansion: Increase capital to increase bonding capacity, private buildings for outdoor paint
Owner willing to finance: 25%
Owner willing to train: 3-5 years