Business Overview

Incredible opportunity to own an established paving company based in Northern Virginia and serving the greater Mid-Atlantic region. The business has been owned and operated for over 15 years by the founder and maintains a very strong reputation for providing quality workmanship at competitive prices. The company is completely turn key with all the equipment and vendor relationships in place to continue operations starting on day one for the next owner. The company employs a team of skilled workers who are well-trained to do the job right the first time.

With over 5 million square feet installed the company is one of the country’s largest applicators with a track record of installing high quality projects along with exceptional customer service and support. The business provides high performance solutions for any project, including: pedestrian crosswalks, traffic calming areas, bus and bicycle regulatory lanes, playground and recreation spaces, parking lots, corporate logos and community branding. The company also specializes in stamped asphalt, innovative coatings and thermoplastic systems that enhance the aesthetic appeal to sustainable streetscape designs. These applications are practical, durable, cost effective, safe, attractive, and can be efficiently installed.

The company performs work for both commercial and residential clients with the breakdown of revenue being roughly 85% commercial and 15% residential. The company has cultivated a very loyal customer base and generates significant revenue through repeat business and referrals. The owner is retiring and looking to pass the torch to someone who can carry on the legacy of the business by taking care of its employees and customers.

Here is a breakdown of business revenue and cash flow going back 4 years:
2018 – Revenue: $1,092,717 and Cash Flow: $274,403
2019 – Revenue: $922,111 and Cash Flow: $288,680
2020 – Revenue: $1,634,825 and Cash Flow: $612,671 (great year with some state contract work)
2021 – Revenue: $1,221,154 and Cash Flow: $388,477

2022 is looking promising with approximately $400K of backlogged contracted work as of the beginning of January. Taking into account the recent revenue and cash flow trends, the value of all of the equipment, and the ability to grow this business, we believe the value is somewhere between $860K to $1+M. An SBA lender has looked at financing the business for upwards of $1mil, but the seller is motivated and has priced the business to sell, so don’t let this deal pass you by!

Financial

  • Asking Price: $780,000
  • Cash Flow: $388,477
  • Gross Revenue: $1,221,154
  • EBITDA: N/A
  • FF&E: $512,000
  • Inventory: $190,000
  • Inventory Included: N/A
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,600
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates out of an office in Northern Virginia with a storage yard for equipment, but can be easily relocated in the DC metro area.

Is Support & Training Included:

Yes, the seller will provide transitional training and support to ensure the buyer’s success.

Purpose For Selling:

Owner is retiring.

Pros and Cons:

There is standard competition in the industry, but this business holds accreditations and licenses for several well-known applications enabling them to offer superior products and services.

Opportunities and Growth:

There is room to grow and expand the business. The operation is easily expandable throughout the DC metro area and beyond as proven by the current model. The next owner will be able to leverage the strong brand and company reputation in the market to continue operating the business with success. There is the opportunity for growth through fractional franchising on the residential side and moving into new markets north (Northern NJ, Long Island, Western PA).

Additional Info

The business was started in 2005, making the business 17 years old.
The deal doesn't include inventory valued at $190,000*, which ins't included in the listing price.

The business has 6-8 employees and is situated in a building with approx. square footage of 1,600 sq ft.
The property is leased by the business for $2,600 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell operating businesses. However, the genuine factor vs the one they tell you might be 2 entirely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, current reduction in profits, or an array of various other reasons. This is why it is very crucial that you not depend entirely on a vendor's word, however rather, make use of the vendor's answer combined with your overall due diligence. This will repaint an extra reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be met or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Certain factors such as brand-new competitors growing up around the area, road building and construction, and employee turn over can impact repeat consumers and adversely influence future profits. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the better the chance to construct a returning client base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median house income effect future earnings potential?