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    4 Replies Latest reply on Mar 21, 2009 5:01 PM by PETERBONNETTE

    DIVERSIFIED CONSTRUCTION COMPANY LOOKING FOR INVESTOR/BUYER

    PETERBONNETTE Newbie

      PM MACKAY & SONS, INC. a New Hampshire based company established in 1947, is an integrated trades services company, that has embarked on ten year strategy beginning in 1997, to diversify it's offerings to its clients by developing independent business divisions relative to the construction industry. They have created and marketed these new divisions through its overall business model. The company has built an independent and technically proficient team of tradesmen dedicated to their success in each of these chosen professions in a mix that optimizes their average hourly rate into a service market niche that will justify a profitable rate of return.

      I can be reached at 603.821.5805
      Peter Bonnette

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        • Re: DIVERSIFIED CONSTRUCTION COMPANY LOOKING FOR INVESTOR/BUYER
          LUCKIEST Guide
          DIVERSIFIED CONSTRUCTION COMPANY, Welcome Peter

          Interesting. Do you have a Business and Marketing Plan that I can read??

          LUCKIEST
          • Re: DIVERSIFIED CONSTRUCTION COMPANY LOOKING FOR INVESTOR/BUYER
            LUCKIEST Guide
            DIVERSIFIED CONSTRUCTION COMPANY

            *So**rry, but I do not understand "*The company has built an independent and technically proficient team of
            tradesmen dedicated to their success in each of these chosen
            professions in a mix that optimizes their average hourly rate into a
            service market niche that will justify a profitable rate of return".

            Please explain. Thanks
            • Re: DIVERSIFIED CONSTRUCTION COMPANY LOOKING FOR INVESTOR/BUYER
              bmt2008 Adventurer

              We can help - just go to our website - www.businessmoneytoday.com - Or, search "Business Money Today" in your favorite search engine - Fast, Easy And Free.

               


              Business Money Today
              • Re: DIVERSIFIED CONSTRUCTION COMPANY LOOKING FOR INVESTOR/BUYER
                PETERBONNETTE Newbie

                Business plan

                Purchase the existing business with current assets,liabilities, and accounts receivable that from current ownership, for the sum of $1,500,000

                Cash to owner $1,000,000
                Owner to finance $500,000 over ten years @ 5%
                Borrow $3,500,000 to fund acquisition, and to payoff current line of credit of $1,200,000 and other accounts payable liabilities of approximately $600,000 plus maintain operating funds with remaining $700,000 of borrowed equity.
                ACCOUNTS RECEIVABLE TOTALS $1,500,000
                WITH $275,000 IN DOUBTFUL ACCOUNT
                Spinoff Bangor construction operations for $300,000 (or best offer)
                Spinoff Concrete Coring Operations-nh for $250,000 (or best offer)
                Spinoff concrete coring operations -bangor for $150,000 (or best offer)
                Sell Bangor real estate (not owned by corporation) to maintain personal cash reserves of $350,000- (currently owned 50/50 with owner.
                Reduce annual indirect costs as follows:

                Eliminate 3 salaried sales staff and convert to commission based. save $195,000
                Eliminate coring manager due to sale save $75000
                Eliminate all shared maintenance on owners' real estate holdings save $140,000
                Reduce leases by $60,000(my real estate)
                Reduce Bangor operating expense due to sale -saves $200,000
                Reduced advertising expenses due todivision spinoffs- saves $50,000
                Reduced Insurance burden due to spinoffs
                saves $85000
                total savings on indirect costs will be $805,000
                These reductions will only decrease sales from the current mix by $1,400,000 and effect the gross profit by only $362,000, for a net annual savings of $443,000 direct to the bottom line.
                $2008 sales were at $14,000,000, although our loss on the year was $300,000 due to an unexpected drop in revenues in the 4th quarter, and dismal results from bangor ,coring and certain non-performing residential oriented sales personnel that have already been eliminated. In the first quarter of this year,forced we have reduced our forces by 25%.
                We are lean and mean and our current 2009 backlog sits at $4,500,000 before our bid season is in full swing.
                Once we have proven the soundness of this business plan without the overly agressive influence of existing ownership, we will expand the geographic coverage of our core businesses that include:
                Plumbing; $1,000,000 in revenue
                Remodeling$1,500,000 in revenue
                Electrical $750,000 in revenue
                Insurance loss restoration $5,000,000
                Franchised systems $1,000,000
                Long term care renovations $ 2,000,000
                Commercial service contracts $450,000
                industrial renovations $1,000,000
                The owner is ready to divest, and the timing is right for me to acquire this business.

                What do you think is my best resource to fund this acquisition? On a good year, we realize a 8-10% net profit.
                www.pmmackaygroup.com