This company is a franchisor in the water, smoke and fire damage restoration and mold remediation industry. As a franchisor, the company generates recurring revenue in the form of royalties from its franchisees. With low overhead, the company can scale to a massive size through the growth of additional franchisees. The company has 40 successful franchisees and, over time, is capable of growing 50 fold to over 2000 franchises worldwide.
The business is healthy, strong and growing. Total revenue for the trailing twelve months (TTM) ending July 2014 is $2,628,371. It has grown nearly 21% from 2013. Seller's Discretionary Earnings (Owner Cash Flow) has grown to $902,617 in the TTM ending July 2014. That is up nearly 44% from the full 2013 calendar year. EBITDA is $736,072 in the TTM ending July 2014 which reflects an increase of nearly 160% from 2013 EBITDA of $460,735.
With the sale of each franchise, the company earns 5-15% in royalty revenue from the franchisee's revenue. Royalty revenue for the TTM ending July 2014 was nearly $1 million which represented 38% of TTM revenue. The remaining revenue is earned by the franchise the company owns itself.
When a house is flooded with water, this company will remove all the water quickly and begin a process it pioneered that will dry the contents of the house. The fees are typically paid by insurance companies and the projects are not bid out which allows the company to maintain healthy profit margins. Furthermore, since the service they provide is emergency related, it provides the company with a recession resistant business model. Even during recessions, their service is needed and the margins remain protected.
After growing the business over 15 years, the owner wishes to retire. This is a very rare opportunity to own a business that is recession resistant, has recurring revenue, and can scale to massive size. This is a highly confidential matter. No further information will be provided without a signed NDA.