How can I tell if an epoxy flooring business for sale is profitable?
Ask for job-level records, not just yearly statements. For each job you want the materials used, labour hours, and any redo work. Then look at the mix of residential and commercial customers, the slow months, and how much of the labour is the owner’s own. Have your accountant read the numbers with you.
Epoxy and other coating work looks simple from the outside, but profit depends on details a summary page will not show. Surface preparation, materials, weather and failed coatings all change what a job really earns. A fair check starts with the seller’s own records and works down to individual jobs, so you can see what the statements are made of.
Start with job-level records
Ask for a sample of completed jobs with the quote, the materials used, the crew hours and the final invoice. Compare what each job was quoted with what it cost to finish. Patterns appear quickly. If quotes are regularly too low, the statements may look sound while the method behind them does not. Your accountant can tell you what to request.
Callbacks and redo work
A coating that fails means a crew returns, materials are used twice and goodwill suffers. Ask how callbacks are recorded, how often they happen and who pays for the work. Check whether redo costs sit in the books as their own line or are buried in materials. Ask what causes most failures, since moisture and poor preparation are common culprits.
Customer mix, seasons and the owner’s own labour
Residential garage floors and commercial or industrial floors behave differently. Commercial work may be larger and steadier, while homeowner work can bring in more referrals. Ask which months are slow and how the business covers them. Then ask how many hours the owner installs personally. If you would need to hire someone for that role, the numbers change. Our flooring contractor guide covers the wider trade.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
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