The trailing 12 months from July 1, 2024, to June 30 2025 had revenues of 2.26M and properly adjusted earnings of 378K. The sales price of 870K is only 2.3 times the trailing 12 months earnings of 378K.

The sale price for the business is 870K. The sales price would be higher, but they had a drop in profitability in 2024 which was based on a onetime combination of lazily taking to many referral jobs which resulted in over 111K in referral fees being paid out in 2024. By making the choice to not add additional employees and trucks knowing that they would be selling the company soon, they showed lower than normal profitability because they had no choice but to do a lower percentage of unreferred work. In other words, they felt that they needed to take care of their long-term clients who refer work to them as a priority and in 2024, this meant turning down more profitable work. This would be considered good news to a new owner who would have taken on both types of work by adding technicians and an additional vehicle or two. When you look at the adjusted earnings excel spreadsheet in the data room link, that you will find in the detailed email that I will send you automatically once you submit the NDA , you can clearly see that 2024 is an outlier but I could not ignore it in my valuation. I dropped the multiplier to 2.3 from what would have been 2.5 which is a drop in sales price of 75K. I also showed 2 negative add backs on my spreadsheet that most brokers would have left of to be fair. I am always impressed when a Seller agrees to allow me to do this which they know will cost them money. The two negative adjustments are for an insurance expense that exists every year that was paid in June of 2024 but not paid until July of 2025 which made the bottom line 13,264 higher than it should have been, so I negatively adjusted for this to be fair. The other is the difference between a mortgage payment for the property and the rent they pay themselves on their PL’s. We can discuss all of this anytime.

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.

The sales price is 870K. Here are the reasons this is a great price: The sales price is only priced at 2.30 times its trailing 12 months earnings which is low for a growing company with a steady backlog and can add additional services like Radon mediation. The company currently 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.