Listing ID: 76669
This Asphalt Paving and Grading Company has been in business for more than 30 years working on road surfacing projects in Western Colorado. The Business is mainly involved in paving roads, paving commercial sites, parking lots, residential subdivisions, driveways and asphalt patching. The company also resurfaces county and city roadways and does some heavy highway paving projects. 90% of the Business’s contracted work is paving, while the other 10% involves grading roadbeds and trucking remaining wastes. This business serves cities and towns located in furthermost Western Colorado, and has developed an outstanding reputation.
Jobs are won through a bidding process and upon completion payment is generally received within 30 days.
The company operates from 7 to 5 Monday through Friday with some off time during the winter months due to weather conditions.
The owner of this company estimates, schedules, invoices and determines structure of each particular project. The company has 11 employees from Foreman to laborers. The employees will go on with the new owner.
- Asking Price: $1,999,000
- Cash Flow: $860,000
- Gross Revenue: $5,200,000
- EBITDA: $647,000
- FF&E: $980,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1989
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
This business operates on 1.5 acre parcel of land utilizing one general / employee office trailer. Two steel Conex trailers are used for small tools, equipment, and storage. Site is equipped with electric service, plugins for trucks, and water. The land parcel is not part of the listed selling price, but can be available for sale.
Owner is willing to train for 2 to 3 months with additional time for consulting and advising.
Owners are ready to retire.
Because this sector of the construction industry is utilized by multiple entities, such as general contractors, private owners, cities, counties, and states, the demand will always remain high. With a more than thirty year history in the area, strong relationships with all of the above ensure strong positioning in the marketplace.
There is plenty of work for this industry. Growth can be realized by hiring additional employees and bidding on more projects. Additionally, a web site could enhance this company's exposure.
The business was founded in 1989, making the business 33 years old.
The company has 11 employees and is located in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the real reason vs the one they tell you might be 2 entirely different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is really essential that you not count absolutely on a vendor's word, but instead, utilize the vendor's solution along with your total due diligence. This will repaint a much more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that earnings margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new consumers? Many times, businesses have repeat clients, which form the core of their everyday profits. Certain elements such as new competition growing up around the area, roadway construction, as well as personnel turn over can impact repeat consumers as well as negatively influence future earnings. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the chance to develop a returning customer base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the local median family income impact future income prospects?