Southwest Home Improvement - Multi-Trade Contractor

$15.6M

Revenue

$506K

SDE

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Full Editorial Writeup

The Company specializes in premium flooring, countertops, cabinets, and home finishes, along with professional cleaning services. The Company emphasizes design customization and quality installation,... Businesses Franchises Brokers Loading... Custom Home Improvement Provider Asking Price:Not Disclosed Cash Flow (SDE):Not Disclosed EBITDA:$506,000 Gross Revenue:$15,603,000 Established:Not Disclosed Custom Home Improvement Provider Business Description The Company specializes in premium flooring, countertops, cabinets, and home finishes, along with professional cleaning services. The Company emphasizes design customization and quality installation, serving both residential and commercial customers as a full-service home improvement provider. Key Aspects · The Company grew revenue and adjusted EBITDA at compound annual growth rates (CAGRs) of 6.2% and 46.3%, respectively, from 2023 to the trailing twelve months (TTM) ending March 31, 2026. · With diverse product capabilities spanning flooring, cabinetry, and countertops, the Company functions as a one-stop shop for home improvement needs, which facilitates patronage from customers seeking a variety of services while also providing cross-sale opportunities. · The Company serves a well diversified customer base spanning private and public sectors as well as residential and commercial markets. · The Company maintains a strong local brand presence and reputation for craftsmanship, supported by testimonials and positive Google reviews. Opportunities · Extend services to spec home building and multifamily housing, which would expand the customer base and drive revenue growth without additional capital investment. · Pursue work focused on decorative residential concrete, professional cleaning, commercial cabinets, and countertops, as management notes the Company has additional capacity to develop these services into larger revenue streams. · Promote the Company's e-commerce capabilities to penetrate the do-it-yourself home renovator and house flipper markets. · Expand the Company's geographic service area throughout the Southwest U.S. Headquartered · Southwest U.S. Current Markets · Acting as a subcontractor, the Company serves commercial and residential customers with renovation and new construction projects. The Company performs work in residential homes, K- 12 schools, universities, medical clinics, hospitals, office and retail facilities, industrial properties, and military installations. Real Estate · The Company operates from a 39,830 total sq. ft. facility, which is leased from an affiliated entity, and 26,000 total sq. ft. of facilities, which are leased from an unrelated third party. Both leases are assumable, and the 39,830 total sq. ft. facility is also available to be included in the sale of the Company. Shareholder Objectives · The Company is owned by three equal shareholders. Two shareholders seek eventual exits post-sale following negotiable transition periods but are open to remaining with the Company long-term, while the third shareholder is interested in a negotiable transition period prior to an eventual full exit. Ad#:2513942 Attached Documents Teaser Business Location Real Estate: Leased Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Amy Alonso Benchmark International View My Listings Phone Number 737-377-0881 Voice only (no SMS) Ad#:2513942 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. 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Why we like it

EBITDA growth of 46% CAGR while revenue grew 6% signals exceptional margin expansion and operational leverage. At $15.6M revenue generating $506K EBITDA, there's clear room for margin improvement as this 3.2% margin sits well below industry benchmarks for established contractors.
Diversified revenue streams across residential, commercial, and government work with multiple trade capabilities creates recession resilience and reduces customer concentration risk. The mix of renovation and new construction work, plus essential services like flooring and cabinetry, provides steady demand even in downturns.
Strong local market position with established relationships across multiple customer segments from private homeowners to military installations. The Southwest U.S. location benefits from population growth, housing demand, and commercial development tailwinds driving long-term market expansion.
One-stop shop model with flooring, countertops, cabinets, and cleaning services under one roof creates customer stickiness and cross-selling opportunities. This integrated approach commands higher project values and reduces the sales cycle compared to single-trade competitors.

How to improve it

Implement project management software to improve job costing, scheduling, and margin visibility across the diverse service lines. Many contractors lose money on poor project tracking, and the rapid EBITDA growth suggests systems may be lagging business complexity.
Develop standardized pricing models and estimating processes for each trade to ensure consistent margins and reduce bid variability. The current 3.2% EBITDA margin suggests pricing discipline could unlock significant profit improvement.
Expand into spec home building and multifamily housing as management identified, leveraging existing trade capabilities without additional capital investment. This higher-volume, repeat customer model could dramatically improve utilization and margins.
Launch targeted digital marketing campaigns to promote e-commerce capabilities and capture the DIY renovation and house flipper markets. This direct-to-consumer channel could improve margins by eliminating subcontractor markdowns.
Pursue commercial cleaning contracts more aggressively given the existing service capability and facility infrastructure. Cleaning provides predictable recurring revenue that smooths the lumpiness of project-based construction work.
Negotiate volume purchasing agreements with suppliers across all product lines to improve gross margins. At $15M+ revenue, the company should have meaningful buying power for flooring, cabinet, and countertop materials.
Establish performance metrics and accountability systems for each trade division to identify the most profitable service lines. The margin expansion trend suggests some services are more profitable than others, requiring focused resource allocation.
Develop a formal business development process targeting property management companies, general contractors, and commercial real estate firms for recurring partnership opportunities. Steady subcontractor relationships reduce sales costs and improve cash flow predictability.

Diligence notes

Verify the sustainability of the 46% EBITDA CAGR growth and understand the specific drivers - whether operational improvements, pricing increases, or mix shifts. This dramatic margin expansion needs explanation and validation of future repeatability.
Analyze customer concentration across the residential, commercial, and government segments to ensure no single relationship drives disproportionate revenue. Government contracts often have payment delays and bureaucratic risks that need assessment.
Review the lease terms and related party transaction for the 39,830 sq ft facility leased from affiliated entities. Understand market rates, renewal terms, and any conflicts of interest that could affect future occupancy costs or exit scenarios.
Examine the working capital requirements and cash flow timing given the project-based nature across multiple trades. Construction businesses often face significant cash flow swings from materials purchases, labor costs, and customer payment cycles.
Investigate any required licensing, bonding, or insurance requirements across the multiple trades and jurisdictions served. Ensure all certifications are current and transferable, particularly for government and commercial work.
Assess the key employee and management structure given the three-shareholder exit scenario. Identify critical personnel dependencies and any employment agreements or non-compete arrangements that could affect business continuity.

Source

Originally listed on BizBuySell. View original listing →