15 Year Old Hazardous Materials Removal Company

The company is over 15 years old and one of the largest hazardous removal companies by volume in Colorado. This is a growing industry due to increased regulation on the State level, including laws that require testing of any suspect material which usually leads to its removal. Only a fraction of residential and commercial building has had the mitigation that is needed. 

Hazardous materials are still being imported into the United States each year. The countries mining and exporting these materials have different regulations than the United States and the US does not have the people power to test the materials when they enter US ports. Even recently built homes or offices may contain these materials.

2024 had revenues of 2.2M with earnings of 280K. 2023 revenues were 2.2M with earnings of 316K. This is a 13% net profit which is above average for a service company.

The sales price is 760K. Here are the reasons this is a great price: The company gets its business from online advertising helped by its 4.9 Google rating with over 200 reviews, recurring business from contractors/builders, from state employees who are asked if they recommend any companies, and from referrals from previous customers. Their advertising cost is under 1% of their revenues because their service is a “need” not a want.  Plus, their technicians only need a small amount of inexpensive training, which separates this company from many other service companies that require a much higher level of training and skill and whose employees are much more expensive and harder to find.

A new owner doesn't need any special skills, but it is recommended to have some prior construction experience and/or to take an industry related short class.  The owner will also need to get an easy-to-get license from the State of Colorado. The company has 15 total employees, 11 of whom are technicians and are certified. The other four employees are office staff who are made up of the office administrator, the estimator, the back-office support, and the project manager who also oversees daily operations. The sellers are selling because they want to travel more and spend more time with family. They will sign non-compete agreements and will help transition the business to the new owner.

The business doesn't have to have any salespeople or make any outgoing sales efforts. It is all done through search engine optimization of their website, through referrals from networking and referral partners, and through their outstanding reviews. They have a high number of positive reviews, which can be found on their website, Yelp, the Better Business Bureau, and social media. Additionally, the company has an excellent mod rating of 0.8 for its workers' comp insurance rating. Their focus is on adhering to State regulations and employee safety.

Growth opportunities are numerous: A new owner could add other virtual locations and increase search engine optimization to drive more online traffic. Complimentary(not free) services could be added(Much more detail on this is in the detailed package that will be provided upon filling out and submitting the non-disclosure agreement in the blue link above. Currently the owners don't work outside of the metro area despite regularly receiving requests for work in the mountain resort towns along I-70. Property owners in the mountain areas understand that they may pay more for Denver-based service providers to travel to these areas to work.  “We turn down a significant amount of work from the mountains”.

The cost to capitalize growth is low. The business comes with 3 vehicles and 3 trailers worth 60K and 10K worth of equipment and tools totaling 70K. Their equipment is small, inexpensive, and easy to transport. There is plenty of room in their current space for additional employees, inventory, tools, and equipment. The degree of skills the employees need is among the lowest in the service industry which makes it easier to find employees. Their building also has a conference room for employee meetings/training.

The sale price for the business is 760K. The sale price includes 70K in assets. The company is an S Corp which means that it can be bought as a "Stock" or "Asset" sale. It is being priced as a "Stock" purchase with the owners keeping their collectible accounts receivables and cash and pay off all debt at or before the closing. They prefer a "Stock" sale because their taxes will be lower than with an "Asset" purchase. If a buyer insists on an "Asset" sale, the sales price will be increased by the amount of taxes he will be paying, estimated to be 35K. This business is bankable. I estimate that a buyer will need 200K liquid to be able to buy this business and the real estate. The seller will carry 10% with a 5-year amortized personally signed promissory note at 6%, with monthly P&I payments, and a 3-year balloon payment which is the shortest the SBA will allow.

Location: Denver Metro Area