Good Morning!
I am hoping that you can help me put a valuation on a business that I was offered to buy into.
This is a small-medium sized company (gross revenue expected in 2015 is $14,000,000) with 18 employees and 3 offices. Company is an S-Corp. The company is a exterior remodeling company (roofing, siding, windows) with minimal inventory and labor is sub-contracted. Please let me know what kind of valuation you come up with, and your thoughts on the offer vs. P&L numbers. Thank you!
Owner presented a 15% piece of the company for $150,000.
Here is the P&L info:
2012
Job Income (gross sales) - $3,312,317.91
COGS - $2,552,788.52
Gross Profit - $759,529.39
Total Expense - $555,080.13
Net Income - $204,449.26
2013
Job Income (gross sales) - $5,399,996.35
COGS - $4,620,222.91
Gross Profit - $779,773.44
Total Expense - $756,558.65
Net Income - $23,214.79
2014
Job Income (gross sales) - $7,270,833.63
COGS - $5,698,497.88
Gross Profit - $1,572,335.75
Total Expense - $1,575,693.25
Net Income - ($3,357.50)
2015 YTD
Job Income (gross sales) - $6,985,861.08
COGS - $5,585,845.02
Gross Profit - $1,400,016.06
Total Expense - $1,188,268.41
Net Income - $192,705.26
2015 YTD A/P
Current: $1,268,428.82
Total: $1,440,285.84
2015 YTD A/R
Current: $516,628.04
Total: $1,111,237.01
I am hoping that you can help me put a valuation on a business that I was offered to buy into.
This is a small-medium sized company (gross revenue expected in 2015 is $14,000,000) with 18 employees and 3 offices. Company is an S-Corp. The company is a exterior remodeling company (roofing, siding, windows) with minimal inventory and labor is sub-contracted. Please let me know what kind of valuation you come up with, and your thoughts on the offer vs. P&L numbers. Thank you!
Owner presented a 15% piece of the company for $150,000.
Here is the P&L info:
2012
Job Income (gross sales) - $3,312,317.91
COGS - $2,552,788.52
Gross Profit - $759,529.39
Total Expense - $555,080.13
Net Income - $204,449.26
2013
Job Income (gross sales) - $5,399,996.35
COGS - $4,620,222.91
Gross Profit - $779,773.44
Total Expense - $756,558.65
Net Income - $23,214.79
2014
Job Income (gross sales) - $7,270,833.63
COGS - $5,698,497.88
Gross Profit - $1,572,335.75
Total Expense - $1,575,693.25
Net Income - ($3,357.50)
2015 YTD
Job Income (gross sales) - $6,985,861.08
COGS - $5,585,845.02
Gross Profit - $1,400,016.06
Total Expense - $1,188,268.41
Net Income - $192,705.26
2015 YTD A/P
Current: $1,268,428.82
Total: $1,440,285.84
2015 YTD A/R
Current: $516,628.04
Total: $1,111,237.01