Colorado Residential Remodel & Cabinet Distributor, 34-Year Englewood Contractor

$1.9M

Revenue

$579K

SDE

1.7x

Multiple

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Full Editorial Writeup

This is a residential remodeling contractor and cabinet distributor operating out of Englewood, Colorado in the Denver metro. Founded in 1991, the business has built a 34-year track record combining full-service home remodeling with cabinet distribution, serving a repeat homeowner base across the region. It carries a 4.7 Google rating, an A+ BBB rating, and appears on the Tom Martino and Dave Logan referral lists, which are locally trusted third-party endorsement channels that drive meaningful lead flow in Denver.

The business does roughly $1.9M in revenue and $579K in reported cash flow (SDE), which is an unusually high owner-earnings margin of about 30 percent for a remodeling operation. The model leans on established subcontractor relationships rather than a large in-house crew, and management describes proven systems for scheduling and project organization. The listing emphasizes a full pipeline of pre-sold, profitable jobs at handover, which is the single most valuable asset a remodel buyer can inherit.

At a $975K asking price against $579K cash flow, the deal is priced at roughly 1.68x SDE, which is cheap for a business with this margin profile and brand equity. The low multiple almost certainly reflects the owner-dependence and cyclicality risk inherent to residential remodeling, and the burden of diligence is to confirm the cash flow is real and repeatable rather than a peak-year snapshot.

Why we like it

The reported $579K SDE on $1.9M revenue is a ~30 percent owner-earnings margin, which is exceptional for residential remodeling where 10-15 percent is more typical. If that margin holds under scrutiny, the 1.68x asking multiple leaves real room for return even if a buyer discounts earnings meaningfully.
The moat here is local reputation and referral infrastructure: 34 years in market, 4.7 Google rating, A+ BBB, and placement on the Tom Martino and Dave Logan referral lists, which are genuine lead engines in Denver. That combination is expensive and slow to replicate and drives repeat and word-of-mouth demand rather than paid customer acquisition.
Denver metro is a high-value, densely built housing market where aging homes drive steady remodel and cabinet replacement demand. A subcontractor-based model keeps fixed overhead low and lets a buyer flex capacity up or down with the cycle rather than carrying a large payroll.
The listing claims a full pipeline of pre-sold profitable jobs plus established subcontractor relationships at handover, which is the closest thing to instant cash flow a remodel buyer can get. A motivated operator with a sales and marketing background could layer in lead generation on top of an already-full funnel.

How to improve it

Audit the pipeline job by job in the first 30 days and re-underwrite gross margin per project. Kill or reprice any jobs where subcontractor costs have crept up, and standardize a minimum gross margin threshold before any bid goes out so revenue growth does not dilute the 30 percent SDE.
Systematize lead capture from the Tom Martino, Dave Logan, and BBB referral channels into a formal CRM with automated follow-up. Many remodel businesses leak inbound leads through slow response times, and tightening speed-to-lead alone can lift close rates on an already-full funnel.
Build a cabinet distribution attach strategy so every remodel job upsells cabinetry at distributor margin. Bundling the distribution arm into remodel projects captures more wallet share per customer without new customer acquisition cost.
Reduce owner dependence by promoting or hiring a lead project manager and estimator within the first 90 days. The low multiple signals buyers price in key-man risk, so building a management layer both protects the business and raises its resale value.
Formalize subcontractor agreements with rate cards and preferred-partner terms to lock in capacity and pricing. Handshake relationships are a transition risk, and written terms protect margin and completion timelines as volume grows.
Add a light digital marketing presence (paid search, before/after portfolio, Google Business optimization) to complement referral flow. A business this established with only word-of-mouth lead gen is leaving a scalable, controllable channel untapped.
Introduce standardized project deposits and progress-billing milestones to strengthen working capital. Remodeling businesses live and die on cash timing, and disciplined billing reduces the need to float subcontractor and material costs.

Diligence notes

Verify the $579K cash flow against three years of tax returns and bank statements, not just a broker add-back schedule. The Established field shows Not Disclosed and revenue is not tied to a period, so confirm this is a repeatable annual figure and not a single peak year inflated by a few large jobs.
Stress test the pipeline claim by reviewing signed contracts, deposits collected, and projected margins on upcoming work. A full pipeline is only valuable if the jobs are contractually committed and priced at the margins the seller represents.
Quantify owner dependence: understand who sells the jobs, who estimates, and who manages projects today. If the seller personally drives lead conversion and subcontractor relationships, the low multiple is justified and the transition plan needs to be concrete and time-tested.
Examine revenue concentration and cyclicality, given residential remodeling is discretionary and gets cut in downturns. The listing claims it 'thrives even during tough economic times,' so pull the 2008-2011 and 2020 revenue history if available to test that claim.
Confirm the durability of the Tom Martino and Dave Logan referral list placements and BBB standing, and whether they transfer to a new owner. If a portion of lead flow depends on the current owner's personal relationships or endorsements, model the risk that it does not carry over.

Source

Originally listed on BizBuySell. View original listing →