BUSINESS FOR SALE
May 10th, 2017
Table of Contents
Business Overview………………………………………………Page 3
Competitive Advantages…...... Page 4
Assets…………………………………………………………………Page 5
Clients…….………………………………………………………….Page 7
Target Market…………………………………………………….Page 7
Business Strategy………………………………………………..Page 8
Financials…………………………………………………………….Page 9
Summary……………….……………………………………………Page 10
Contact Information……………………………………………Page 10
Business Overview
Green Street Infrared, LLC is a small Veteran owned infrared asphalt repair and restoration business that has been proudly serving Virginia residents and businesses since 2011.Green Street Infrared has an A+ rating with the “Better Business Bureau”.
The infrared asphalt repair process provides a longer-lasting, quality asphalt repair that costs less and takes less time to complete thantraditional asphalt repair systems. The infrared repair heats the repair area providing a thermal bond between the new asphaltand the old asphalt. The thermal bond keeps water out of the repair which means a longer-lasting repair for our customers.
Infrared Asphalt Repair is the most reliable and cost-effective method available today. In fact, there are a number of places in New Jersey and Pennsylvaniathat are mandating asphalt be repairedusing infrared if a roadway has to be cut. These mandates along with returning customer satisfaction levels exemplify the reliability of an Infrared Repair.
Competitive Advantages of Infrared Repairs
Cost-effective- Infrared Repairs require only one truck, a crew size ofonly 2 to 3 personnel, and less material as the existing asphalt isrecycled. It also saves on future asphalt maintenance costs as the repairs last longerthan just repaving an area that has been cut.
“You don’t replace a whole tile floor if a couple tiles are broke, why repave an entire parking lot when you repair a small section that will last years?”
Longer Lasting- Therepair is thermally bonded to the existing asphalt,creating one continuous surface and eliminating any seams. Traditionalrepairs never eliminate the seams and usually create four new seams wherethe asphalt has been cut into. No seams mean that water cannot penetratethe repair which is the leading cause of failure in traditional repairs.
Less Time Consuming / Minimal Business Interruption- A typical repairtakes less than30 minutes to complete, including preparation andclean-up. The repair will be able to handle moving vehicle traffic
almost immediately. The quicker repair reduces parking lot congestion,customer/resident inconvenience, and reduces traffic build up.
Assets
Truck- Green Street Infrared, LLC includes a 2004 Freightliner M2 equipped with a 2 ton asphalt hot box/reclaimer, five (5) 100lb propane cylinders, 6’x8’ hydraulic heating chamber, water tank, hydraulic dump bin, tool storage bins, and traffic control lighting.
Vibco GR-3200 Vibratory Roller- TheGR-3200 Patch-it-Man is a compact 5.5 horse power vibratory roller providing 3200 force lbs. over a repair area. The roller folds up for storage on the truck using a built-in steel ramp.
Tools/Parts-The purchase of the Green Street Infrared, LLC includes all tools (wheel barrow, spare blower motor, new battery charger, asphalt rakes, asphalt lutes, shovels, steel rod, hard hats, measuring wheels, etc.…
Website-Green Street Infrared, LLC owns the domain and Virginiapothole.com.
Clients
Green Street Infrared recently started working mainly in the commercial asphalt repair niche. Some past clients include the following:
- Presidential Lakes Home Owners Association (King George, VA)
- FirstResidential Property Management (Fredericksburg, VA)
- Parsons (National Geospatial Intelligence Agency – Springfield, VA)
- King George County School Systems (King George, VA)
- Kelly Property Management (Starbucks – Glen Allen, VA)
- Burger Busters (Chesterfield, VA)
- Stealth Construction (Gainesville, VA)
- Ruston Paving (Stafford and Alexandria, VA)
- Bon Secours (Glen Allen, VA)
- Cornerstone Church (Falmouth, VA)
Target Market
Green Street Infrared’s target market is vast and includes anyone with an asphalt parking lot, roadway, walkway, or driveway. There is a significant number of malls, shopping plazas, fast-food restaurants, sub-divisions, apartment complexes, schools, churches, retail businesses, and parking lots in the local region. With all the potential in this local area, Green Street Infrared was mainly operating in between Richmond and the Washington, D.C.
Green Street Infrared ideal customers are franchise owners that have multiple restaurants, commercial property managers, utility companies, churches, home owners associations, government asphalt repair contracting officers, and possibly the Virginia Department of Transportation.
Business Strategy
Sales - Green Street Infrared is trying to actively implement a sales team that would essentially have 2-3 independent salespeople in Northern Virginia, 2-3 independent salespeople in Richmond and 1-2 salespeople working in the Fredericksburg, VA area. The salespeople would be responsible for making new contacts, submitting estimates with compensation based on commission only. With a sales team, the potential for contracts could have the truck operating on a consistent basis. By achieving a constant flow of work, three (3) people could be hired to do the work. With three people working the truck, this would avoid having to shut down the truck if one person calls out sick or can’t work on certain days. Growing a clientele base could potentially require a second Infrared truck with each truck operating daily.
Partnerships – Due to the professional reputation of Green Street Infrared, we are often asked about driveway installations, sealcoating, and other asphalt maintenance services. The formation of partnerships with reputable paving and asphalt maintenance companies could also open the doors for additional opportunities or partnerships during contract bids. This could also result in extra income by working with a partner that would pay referral fees to Green Street Infrared.
Financials
Average charge per heat $200
Average number of heats per day 16 (assuming 30 minutes per repair)
Average total revenue per day = $3,200
Cost for two (2) tons of asphalt = $140
Cost for one day of diesel fuel = $60 (depends on distance traveling)
Cost for propane per day = $130 (approximate)
Cost for unleaded fuel per day = $6 (leaf blower and roller)
Labor = $500 / day
Overhead costs = $50 (rough estimate)
Profit per day = $2,314
2018 Pro Forma
Labor / Hour / Number workers / Asphalt cost per ton / Tons per day / Propane per day / Diesel per day / Tools/ Maintenance/ Uniforms / Insurance / Average Income repair / Average repairs/day$25 / 2 / $70 / 2 / $130 / $60 / $10,000.00 / $5,000 / $200.00 / 16
Days Worked = 105
(This assumes an average of 3 working days per week for 35 weeks from March 1 – October 31)
Hours Per Day = 10 (This assumes 8 hours working time plus two hours per day for driving and picking up asphalt)
Daily Cost / $836.00
Yearly Cost / $102,780.00
Daily Gross / $3,200.00
Yearly Gross / $336,000.00
Yearly Net / $233,220.00
Summary
Green Street Infrared, LLC has built a reputation of being an honest, reliable company that has ensured 100% customer satisfaction over the past five asphalt seasons. Customer loyalty to Green Street Infrared provides a customer base to build upon year over year. With a name that has become synonymous with quality pot whole repair from Richmond to northern Virginia, the potential is much greater than the 2018 Pro Forma projects. With a good marketing strategy, the projected numbers for 2018 could approach $400k. Due to the current ownership’s lack of time, Green Street Infrared is asking $107,000 for the sale of this proven “turnkey” business which would include the tangible assets listed, company goodwill, website, logo, training and local support.
Contact Information
Chris Landauer – OwnerClinton Spencer - Owner
703-728-7742540-907-1193
Email Address: (will reach both owners)
Website:
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