SCHEDULE OF BUSINESSES AVAILABLE Presented By: THE FBB GROUP, LTD. Colorado s Premier M&A Advisory Firm Inspiring Business Relationships Since 1982! 303 S. Cascade Ave., Suite 200 Colorado Springs, CO 80903 Table of Contents Service 2 New Engagements Full-Service Interior Design Business - #1217 2 Traffic Control Company - #1017 3 Construction Related 3 Distribution 4 Adventure/Outdoor Recreation 5 Changes Full-Service Provider of Electronic Systems - #2116 2 Outdoor Adventure Sports Outfitter - #917 5 Technology/Internet 5 Education/Training 6 Manufacturing 6 Retail 7 Food & Beverage 7 Automotive 8 Footnotes/Legend 9 ONE PAGE SUMMARIES ARE AVAILABLE ON OUR WEBSITE AT: WWW.FBB.COM Footnotes are provided on the last page. Colorado Springs: (719) 635-9000 Denver: (720) 441-1425 Fort Collins: (970) 305-3643 www.fbb.com
SERVICE Full-Service Interior Design Business - #1217 NEW This full-service interior design studio and interior finishes company has been in business since the 1980s. The company not only provides residential and commercial installation services with field supervision, but also interior design, design center management, account management, warehouse services, administration services, and top notch customer service. Products include various types of flooring, cabinetry, countertops, wall finishes, and window coverings. Customers include builders, property managers, contractors, and homeowners. Long history of growth Strong secondary management Opportunities for growth Customer contracts Real estate available to purchase ($3.2M) Prime, Denver Metro location Gross Sales $16,185,860 Adjusted EBITDA $1,397,183 Jan. - July 2017 sales of $8,489,830 up 20% over previous YTD; Adjusted EBITDA of $816,131 is up 232%. Real Estate $3.2M Interior Design Firm/Commercial - #2016 This Company provides a service to developers, homebuilders, and apartment management companies throughout the country. With its long history of increasing sales and profits, this business should make an excellent acquisition candidate for a salesand marketing-oriented entrepreneur or a synergistic acquirer looking to expand its offering of services. Established 30+ years Strong history of growth Backlog of $10+ million Experienced staff in place Prestigious firm with clientele throughout the United States Gross Sales $9,846,803 Adjusted EBITDA $1,262,334 Q2 2017 Total Revenue is $5,638,466. Adjusted EBITDA is $922,900. Signed contracts exceeded $10M as of March 2017; up from $6.6M in 2016. Full-Service Provider of Electronic Systems - #2116 This B2B service company installs and services fire alarm, security alarm, and communication systems. It is well known in the industry for providing best in class design, engineering, installation, and monitoring services throughout the state of Colorado. Thriving since its inception over 30 years ago, the company has prized relationships with large organizations that rely on its expertise in new installations and ongoing service. Well established with year after year of increasing sales and profits Loyal customer base Go-to source for system design Knowledgeable, credentialed staff Strong brand in the market Market expanding Gross Sales $2,095,232 SDE $341,406 Jan-June 2017 sales of $967,539, SDE of $336,117 is up 17.9% over 2016. Real Estate $435,000 Page 2
CONSTRUCTION RELATED Traffic Control Company - #1017 NEW For over 20 years, this well-managed Traffic Control and Flagging Services Company has seen continued growth, due to its long term involvement with the Colorado Department of Transportation (CDOT) and various municipal projects. The owners are looking to retire, making this business a great acquisition for a regional industry buyer or an entrepreneur looking to acquire a well-established, profitable business and expand into other areas of the state. Increasing sales Great reputation Well established Contracts in place Southern Colorado location Gross Sales $1,341,840 SDE $441,981 Asking Price $1,495,000 Down Payment $385,000 Electrical Service & Repair - #217 This business was established in 2004. The company has seven employees that include two master electricians. Although service work is a very important part of the business, the company also contracts with property owners and general contractors. We believe this business should make a nice acquisition candidate for an industry buyer or an electrician looking to own their own business. Increasing sales Great reputation Established 13+years Contracts in place Southern Colorado location Gross Sales $700,444 SDE $143,868 Jan. - Aug. sales of $510,780, were up 23% over the same period in 2016. Asking Price $250,000 Page 3
DISTRIBUTION Multi-Location Home Accessories Distributor - #2416 This well-established distributor of home accessories and follow-on services continues to generate increasing profits in the home accessories industry. Over the past four years, sales have increased nearly 35%, resulting in over a 110% increase in adjusted EBITDA. The business is poised for expansion not only within Colorado, but also the surrounding states. In business 30+ years History of increasing revenue and profits Experienced, second-level management in place Indoor/Outdoor product lines Real estate available to purchase or lease Multiple locations throughout Colorado Gross Sales $20,289,661 Adjusted EBITDA $2,835,875 trailing 12-month numbers as of June 30, 2017. Real Estate $6,000,000+ Custom Building Products - #2616 This company, located in a high-end mountain community, offers decorative finishes necessary for most remodels, upgrades, and new construction projects. The business continues to expand into new geographic markets through its motivated sales staff. Through its highly effective website, designers from around the world have discovered this company and the unique, quality products it offers. Decorative finishes products History of increasing sales year-over -year since 2011 Strong vendor alliances Repeat business Real Estate available to purchase or lease Located in a great Colorado mountain community Gross Sales $2,066,559 SDE $392,749 Jan. - Aug. YTD sales of $1,272,986; SDE $274,787. Asking Price $1,200,000 Down Payment $300,000 Real Estate $995,000 Page 4
ADVENTURE/OUTDOOR RECREATION Outdoor Adventure Sports Outfitter #917 This very profitable, top-rated outfitter includes not only two very different adventures, but several parcels of real estate, vacation homes, and a bar and grill and there s room for expansion! It s the full deal when looking for outdoor entertainment in the state of Colorado. Top selling entertainment for individuals, families, and groups. Ideal acquisition candidate for investor or synergistic acquirer. Rated Colorado's #1 of its type Exceptional team of experienced guides Well established and growing Well-trained staff in place Expansion capabilities Real estate included in sale Gross Sales $3,738,388 Adj. EBITDA $911,481 Sales through August 2017 were $3,132,239. TECHNOLOGY / INTERNET Relocatable! Digital Media Services Provider #317 This organically grown web services business continues to generate great profits by providing both local and national brands with website design, custom coding, mobile application development, online marketing, and paid advertising services. This business could be easily run and scaled by an individual owner with a marketing background or by a synergistic buyer looking for a profitable add-on opportunity. Steady Cash Flow Year-to-Year History of Industry Awards Regional/National Clients Scalable Business Model Recurring Revenue Relocatable Gross Sales $1,600,302 SDE $246,553 Page 5
EDUCATION / TRAINING Profitable Educational/Training Franchise - #1516 This profitable company has carved out a desirable niche in the growing field of financial education and training. This business would be appealing to a wide range of experienced business operators (especially in sales or training) looking for an established company with growth opportunities. High profit margins Expanding base of repeat customers Well-trained, experienced staff Protected territory of Wisconsin Franchisor support Located in Milwaukee Gross Sales $2,575,075 SDE $362,338 FY Sept. First seven months of FY 2016: October 2016 - April 2017 Gross Revenue $1,661,873 SDE $213,164 Asking Price $1,100,000 Down Payment $300,000 Contact Ron Brasch rb@fbb.com MANUFACTURING Fabrication of Commercial Cabinetry - #117 This established company (25+ years) is well known for manufacturing architectural woodwork and cabinetry for commercial accounts. The company designs, builds, delivers, and installs. The experienced team will be an asset to the next owner, with two key employees having over 15 years with the company. Ideal acquisition candidate for an entrepreneur with a good business background. Well-known and respected Long history in the state of Colorado Experienced staff in place Backlog of approximately $375,000 Colorado Front Range location Gross Sales $1,076,086 SDE $232,297 Asking Price $975,000 Down Payment $250,000 Contact Kim Hoyal kim@fbb.com Page 6
RETAIL Indoor/Outdoor Entertainment Store - #517 This growing, family-owned business is a full-service retail outlet for spas, billiards, and related accessories, including products such as pool table lights, game tables, bar stools, outdoor grills, BBQ islands, etc. Established in 1995, the company has a well-known local brand and loyal customer base with established vendors and suppliers. We believe this business is a good fit for marketing/sales minded entrepreneur or as a solid add-on opportunity for an existing business looking to capitalize on the outdoor entertainment industry. Growing Industry Long-Term Employees Visibility from I-25 New Product Lines Southern Colorado Gross Sales $1,129,562 SDE $170,935 Jan - June 2017 $636,916 gross revenue (up 36% over last year) with $158,438 SDE (up 52% over last year). Asking Price $395,000 Down Payment $102,000 FOOD & BEVERAGE Legendary Full Service Bar/Restaurant - #617 This well-known southern Colorado sports bar and restaurant is consistently voted one of the best in the city. At the same location for nearly 40 years and operated by the current owners since 2010, this unique establishment has become a locals favorite, as well as a great place where tourists frequently visit on their way through this historic area. With an experienced head chef in place and a seasoned wait staff, we believe a new owner/operator with restaurant training or an industry buyer looking to add another great location could continue to successfully operate this proven and profitable business. Well established name and location Experienced head chef/kitchen staff Veteran managers/friendly wait staff Local award winner in many categories Hundreds of 4/5-star ratings on Yelp/Google Loyal customer base Prime high traffic location Close to tourist attractions Gross Sales $1,554,518 SDE $209,367 Asking Price $650,000 Down Payment $162,500 Page 7
AUTOMOTIVE Automotive Service, Repair, and Tires - #1716 The services offered at this business range from simple oil changes to complicated diagnostic and electrical repairs. The company also sells and repairs tires. We believe this would be an ideal acquisition candidate for an entrepreneur with automotive, marketing, or management skills, or another similar-type business looking to expand into the area. SALE PENDING Well established and profitable Certified technicians Long history of growth Repeat customers Strong name recognition El Paso County market Gross Sales $1,681,003 SDE $271,670 Asking Price $895,000 Down Payment $230,000 Automotive Repair & Service with Great Reputation - #1715 This independent automotive repair and service business sets the local standard for customer satisfaction, employee retention, and overall profitability in the industry. Having a great location proximate to some major thoroughfares, this business continually attracts new customers, as well as serving its loyal base of local customers. Great profits! ASE Certified Technicians National warranty brand AAA approved repair center El Paso County market Gross Sales $1,029,339 SDE $289,033 Asking Price $790,000 Down Payment $200,000 Page 8
Footnotes and Legend to the Schedule of Businesses (To be suggested by Purchaser) - Seller, in his/her sole discretion, has the right to accept or reject all offers. Down Payment - Down Payments are estimated and assuming purchaser qualifies for SBA financing in most cases. SDE (Seller s Discretionary Earnings) - A calculation showing the cash flow generated by the business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner s salary and benefits, interest paid on the Seller s notes/debts that are not assumed by the Purchaser, non-cash expenses, such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization) - A calculation showing the cash flow generated by the business for the most recent tax year, unless otherwise indicated, by adding back to the net operating profit interest paid on the Seller s notes/debts that are not assumed by the Purchaser, non-cash expenses, such as depreciation (in appropriate situations) and amortization. In addition, owner s salary and benefits over and above normal would also be added back. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) - A financial metric used by sophisticated financial buyers, such as Private Equity Groups. EBITDA often implies GAAP accounting. Details of either the SDE, Adjusted EBITDA, or EBITDA calculations are available for review in each detailed presentation package. Page 9