Profitable enterprise with bidding preferences!
- Not included in asking price
- Real Estate:
- Included in asking price
- Building SF:
- 8 FT/7 PT
- Furniture, Fixtures, & Equipment (FF&E):
- Included in asking price
- Real Estate Included In Price. Business may be sold without real estate for $700,000. Most equipment is usually out on job-sites so Seller has not had the need for a large warehouse/shop or storage yard. Current facility is approximately .6 acres with small shop, office and storage yard.
- There are only about two major competitors in the Northwest with the bonding capacity and ability of this business. They have a unique niche in that they possess a coveted HUBZone designation which is based on census tract information: 1. A HUBZone Certification gives a business a 10% pricing advantage over its competition bidding on the same government contract. When federal contracting officers are purchasing off GSA Advantage, often times a HUBZone reseller of a product is less expensive than the manufacturer because of this 10% price preference. HUBZone firms with GSA Schedules sell 350% more in terms of dollar volume than their small business peers. 2. HUBZone firms are eligible to bid on set-aside contracts limiting the scope of competition to only HUBZone certified firms. 3. All branches of the Federal Government have a 3% HUBZone budgetary target. The purchasing arms of all 600 federal agencies are in need constant need of HUBZone qualified firms to perform on contracts to meet these budgetary targets. 4. Large firms bidding on government contracts in excess of $550,000 must provide an allocation for HUBZone firm participation as part of the contract. Therefore having a HUBZone certification will avail a firm to subcontracting opportunities. 5. The Lender has special programs setup for Bonding and Loans for HUBZone firms. This enables the firm to meet the financial requirements needed to perform governmental contracts. The business can have some years in excess of $10 Million depending on what contracts it has been awarded.
- Growth & Expansion:
- There is tremendous potential for growth due to this business’s large bonding capacity and the HUBZone designation. In some years, the business has approached close to $10,000,000 in gross revenue. This shows the business has the capacity to do much more. Buyer could double up on efforts for going after contracts and know he has the capability to perform.
- Support & Training:
- Will train for 2 weeks @ $0 cost. This business would probably require a bit of knowledge of the construction industry. Buyer would want to remain in area to keep up their qualification for the HUBZone designation.
- Reason for Selling:
- Owner has other non-related projects he would like to pursue.