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Case Study 030 -Specialty Subcontractor (Window Installer)
Statistics:
Specialty subcontractor has been in business for 11 years installing windows. Most of the work is on private jobs. Bonds are occasionally needed. Volume is 15 million dollars, working in three states. In the last three years company has had stable volume, slow growth. Many jobs performed over a short duration. There is a history of profitability with the exception of one bad year two years ago. Management has been the same over the entire history of the company. Company has both CFO- and Controller-level positions. Controls are above average. Key-person contingencies are in place. One claim exists but excluded from receivable, yet company is profitable. The company carries very little equipment debt. Management, although lean, has good controls in place. Nature of lending agreement is in question because present bank does not want construction-related companies. Historical profitability has been low or at a slight loss for two of the last five years. All aging is within 60 days. No business plan exists for the future.
"digger" Rating™: 745
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