Hawaii Specialty Building Contractor
After fifty years in the business this successful specialty building contractor says it’s time to focus on other aspects of his life and turn over this great Hawaii construction business to a younger person.
They are a one-stop shop for all aspects of their work, so customers just have one contractor to work with. They have developed an excellent reputation for high quality design and construction, on-time job completion and superior service and most of their new business comes from excellent customer and industry referrals.
Business is great. In 2020 the Business made over $700,000 in seller’s profits (SDE) based on over $2.8 million in revenue. Currently (May 2021) their contacted backlog is four times what it was in May 2020; sales during the first 4 months of 2021 are 58% higher than the same 4 months in 2020. They are now quoting business for 2022. As an essential business they did not have to close in 2020 due to Covid-19.
Their growth is based on the extraordinarily strong residential and commercial construction demand. They believe their market share in their island market is as high as 75%. The owner has developed an excellent high profit business model which lets him take 4 to 6 weeks of vacation per year (pre-Covid).
Long tenured and successful business with excellent sales and profit history
A well-known and highly regarded building contractor with significant referral sourced new business.
Limited competition in their market segment
No customer concentration
Low fixed cost structure
Low capital investment needed.
Located in a Federally defined Opportunity Zone which may provide significant tax benefits for certain buyers.
Currently their contract backlog is exploding; 4 times larger than one year ago.
Diamond Financial has pre-qualified this Business for a 7(a) SBA loan to a qualified buyer, with the following terms: 15% down payment, 10 year fully amortized note, prime plus 2.75% variable interest rate, monthly payment $14,994.
Listing ID: HI Specialty Contractor
Location: Hawaii (Island Confidential)
Type of Entity: Corporation
Year Established: 2007
Industry: Specialty Construction Contractor
2020 Quick Books
Revenue: $2.81 million
SDE: $ 711,000
Asking Price: $1,750,000
Inventory included in the Price: $12,000.
Tangible Assets (F,F&E): $200,000
Non-Compete: 5 years
Training: 2 weeks; 30 hrs./wk.
Sale Reason: Retirement
Monthly Rent: $2,954 per month total
($35,449 per year; $1.56/sq. ft. month.)
Office: 630 sq. ft.
Warehouse: 1,260 sq. ft.
Fenced Yard: 1,400 sq. ft.
Lease Expiration Date: Currently month to month
Other Location Info: Low cost and conveniently located.
They have limited competition and they estimate their current market share is about 75%
Expand to other HI Islands.
Office open 5 days per week
Construction 6 days per week
The Business is being offered on a fully turnkey basis, with training and a long term non-compete agreement offered by the seller. State of Hawaii requires that the Business has a contractor’s license, and a buyer can meet this requirement by either qualifying for it himself or to hire a Responsible Management Employee. is needed, which an experienced mainland contractor should be able to qualify for. The seller is willing to stay on after the sale to help the buyer including being the Buyer’s RME on an interim basis and to help the buyer deal with the avalanche of new business.
To get a copy of our extensive Confidential Business Profile with tax return based financial data and detailed business information, please contact Hawaii Business Sales.