FINISH CARPENTRY - CUSTOM DECKS CONTRACTOR IN WA

Looking for a buyer.
Rapidly growing Builder of custom outside decks in the greater Spokane, WA area. With forecasted sales of $4 million in 2021, an enviable 20% EBITDA margin, and a formalized management structure that is built on a decentralized model of work crews reporting to a non-owner operations manager, the Company is poised for continued growth in one of the most dynamic housing markets in the United States.

The Company has averaged a 47% growth over the last two years with no end in that growth foreseen. Estimated sales growth in 2021 is expected to be 44 % from sales levels in 2020 with a large majority of this revenue coming from the residential sector. Given the high demand for its services, the Company has been able to expand its operating margin in 2021 at a time when the home construction industry has experienced a great deal of margin pressure due to an increase in raw material from lumber prices and other material used in the industry.

The Company was founded over a decade ago and has developed a reputation within the Spokane region as an honest and forthright company that delivers value to its customers.

The Company attributes its impressive growth to the quality of its work and the skill and respectfulness of its employees, as well as the Company’s image as a clean, responsible, and moral company. Adding to its following in the Spokane market is the Company’s consistent spending on “drive time” radio advertising and social media platforms over the last several years.

The Company installs mostly synthetic wood decks given the significantly better wear and tear of synthetic wood decks compared with natural wood decks, particularly in the Spokane region where decks are exposed to hot summers and cold winters, with the decks often under snow and ice during the winter months. The higher cost of synthetic decks has also narrowed over the last year with higher lumber prices.

The Company has an excellent market Growth Potential. Given the high demand for the Company’s residential product the Company has not ventured into marketing to the commercial sector in the region. This is due in large part to the fact that the Company has not been able to keep pace with the residential demand for its product. In fact, during the COVID pandemic period which has covered most of the last couple of years shown above, the limiting factor for the Company has been finding enough experienced or even entry level labor to allow it to expand its sales further.

Company & Market Highlights

• Started by the Company founder in 2010 and has experienced consistent growth and profitability ever since.
• Company has an established management structure that can operate independently of the Company owner and meets once a week to report operations metrics and, if need be, discuss operation issues that need to be addressed.
• Company operations is managed by an experienced Operations Manager that has good rapport and command with the crew leaders.
• The Company enjoys a high degree of visibility and customer awareness in its target market due to its consistent investment in advertising on “drive time” radio and social media.
• The Company’s work crew understands the importance of following chain of command. Crew leaders are the eyes and ears of management on the job site and have been given the training and autonomy to execute their responsibilities.
• The Company does not have any competitors who are significantly larger than they are and most of the competition in the market are smaller, less organized, and lacking strategic direction.
• The greater Spokane – Spokane Valley- Couer d’ Alene, ID region is home to more than 745,000 people, economically sound, home to 4 universities and 23 colleges, an unemployment rate below the national average, a cost-of-living index that is 34 % cheaper than Seattle, WA and 5% lower than Boise, ID, and a residential home market that is among the hottest in the country.
• Expanding into the commercial sector and offering expanded financing options for its residential clients remain untapped potential for the Company.

Part of the Company’s growth can be attributed to the growth and economic vitality of the greater Spokane area. Per the Spokane City Economic Development Department, the population of Spokane County is 491,000 people, and the Spokane – Coeur d’Alene area has more than 745,000 residents and is ranked 71st among combined metro areas in the nation between Lexington, Kentucky and Syracuse, New York.

The housing market in the Spokane region has been one of the fastest growing in the nation over the last couple of years. In fact, Coeur d Alene, ID (25 miles from Spokane), where the Company has a market presence, was recently listed (May[redacted]by the Wall Street Journal as the fastest rising home prices in the nation, and Spokane was not far behind at #5 in the nation.

Situated in the foothills of the Rocky Mountains, the region’s robust housing market is expected to continue into the future given the region’s relatively low cost of housing (Spokane Median Home Price was $389,728 in July 2021, which represented a 28.8 % annual increase) and lower cost of living compared with other nearby markets in the Western US.

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