Foundation Retrofit Contractor - Southern California - 12 Year History

This is a General Contracting business that specializes in foundation retrofits in the Los Angeles, Orange County and Inland Empire areas.

Customers with older homes engage this business to (1) retrofit their existing foundations for earthquake safety, (2) bolster or replace their existing foundations, because they are degrading, or (3) preserve their existing foundations.

Customers are driven to the business mostly because they want to qualify for earthquake insurance or qualify for financing on a new home purchase or refinance.

The business was severely impacted by COVID. The high interest rates that followed COVID caused the real estate market to slow down -- and as a result, demand for foundation retrofit services declined.

Prior to COVID, this business generated over $750,000 in Net Income per year for several years.

This business is now generating approx. $165,000/year for an owner user that handles day to day operations (simple bidding and scheduling for two small crews). This is after adding back GM and Office manager salaries which could now be handled by 1 to 1.5 people at current sales volumes.

There is a lot of potential for this business to revert back to its prior levels as interest rates decline and real estate activity picks up.

A buyer of this business could fit one of two profiles:

1) someone who wants to act as an owner operator and purchase this based on a multiple of cashflow after adding back the GM and office manager salaries

or

2) someone who wants to purchase this business to help grow a larger enterprise - and keep the current GM and office manager.

This business could help a larger enterprise through its licensing as a GC, human capital, and its robust Yelp profile (4.8 star rating with over 300 reviews).