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Residential Remodelling and Design Contractor
A residential contractor doing $1.5M with 90 to 95% of revenue arriving by referral, no full-time employees, and demand balanced across kitchen design, windows and siding.
Business Highlights
- Between 90 and 95% of revenue arrives through an established referral network
- No full-time employees, with the owner supported by a bookkeeper and a subcontracted CAD designer
- Kitchens account for more than half of revenue, with exterior work running counter-cyclically
- Shop and office property available to lease or purchase alongside the business
- Peak activity July through October, with demand year round
Considerations / Questions to Ask
- Referral-driven work with no salesforce almost always means the owner is the channel. A one-year transition helps, but test what actually transfers.
- Kitchen design is more than half of revenue and the seller says that expertise is essential. Can the buyer supply it, or must it be hired?
- An all-subcontractor model carries classification risk. How deep is the subcontractor bench?
- How is the shop and office property priced, and is leasing or buying the better structure?
- SDE is around 17% of revenue for a business with no payroll. Establish where the cost sits.
Opportunities
- Referral revenue at 90% costs nothing to acquire, and no deliberate marketing has ever been run against it
- Kitchens, windows and siding sell to the same homeowner at different points in the year
- A subcontractor model expands with demand without payroll running ahead of revenue
- A one-year owner transition is long enough to genuinely move a referral network