Business Overview

Focused in the construction sector, this vertically integrated company supplies its customers with raw material, hauling and dumping, and recycles demolished materials for future projects. Their reputation is strong, and their customer loyalty is proven from many decade-long relationships.
Originating in the 1980’s, the current owner continues to operate this company with excellence in every way. Today this company runs 20-25 trucks full-time, manages over 40 employees and serves customers throughout the Midwest part of the country.
Competition in this sector is very minimal. With the size and history of the subject company, combined with its ability to meet customer needs, competition has not been a concerning factor in the past. If a customer has a unique need, this company has the ability to adapt and meet that need, thereby deepening the relationship and continuing to capture market share.

Currently, there is little to no effort placed on marketing/advertising efforts. Word of mouth is the largest driver of new business, leaving opportunity for additional growth. Expanding operations into new markets would create additional opportunity, as would a strategic purchase to provide additional services to an existing, non-competing company.

Financial

  • Asking Price: $6,000,000
  • Cash Flow: $1,341,352
  • Gross Revenue: $10,177,942
  • EBITDA: N/A
  • FF&E: $3,029,309
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1987

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:42
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retirement

Additional Info

The company was established in 1987, making the business 35 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nonetheless, the real reason vs the one they tell you might be 2 totally different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is really essential that you not count completely on a vendor's word, but instead, utilize the seller's response along with your total due diligence. This will paint a much more practical picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that profit margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new clients? Often times, companies have repeat clients, which form the core of their daily revenues. Specific aspects such as new competition growing up around the location, road construction, as well as employee turnover can influence repeat customers and negatively impact future revenues. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the possibility to construct a returning consumer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Just how might the regional average house earnings impact future revenue prospects?