Business Overview

Public space engineering and general construction company specializing in the demolition, engineering, and construction of recreation and public spaces. $8.4M in sales for 2021 and $1.8M Discretionary Earnings is offered for acquisition with SBA financing.

The company provides quality engineering and construction for both private and public recreation projects from planning to excavation and demolition to final paving. Clients include, but are not limited to, school districts, cities, counties, churches, and private companies.

The company offers services ranging from General Engineering & Construction of public recreation spaces to site work, drainage, pipeline, retaining walls, demolition services, and slope stabilization. The company’s primary niche is recreation areas and recreation structures/facilities throughout California. Projects have included equipment, shade structures, surfacing, sitework, base and curbing.

Summary:
* Offered at $5.95M
* $8.4M in sales
* $1.9M Discretionary Earnings
* $1.04M Down with SBA Financing (excludes A/R)
* Staff includes 23 Highly Trained professionals
* High Quality Vehicles and Equipment

Services:
* General Engineering/Construction
* Public Recreation Space Development
*Demolition
*Site Amenities
*Pavilions & Structures
*Outdoor Fitness Equipment

Buyer Skills and Requirements:
The Company has a General Contractor B license. The owner will act as the RMO (Responsible Managing Officer) for the buyer for up to 12 months (maximum allowed by SBA). The buyer will likely want to obtain their General Contractor license if not already held. The Seller will provide training for 4 weeks/40 hours per week and is available for consulting as negotiated after the initial training period.

Reason for Selling:
The owner is retiring.

Inquiries from principals only

Financial

  • Asking Price: $5,950,000
  • Cash Flow: $1,888,450
  • Gross Revenue: $8,362,576
  • EBITDA: $1,738,450
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1994

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:5,500
  • Lot Size:N/A
  • Total Number of Employees:23
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 week, 40 hours per week, owner will consider paid consulting after training is complete

Purpose For Selling:

retirement

Additional Info

The business was founded in 1994, making the business 28 years old.

The company has 23 employees and is located in a building with estimated square footage of 5,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell companies. However, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is very crucial that you not rely entirely on a seller's word, but rather, utilize the seller's answer in conjunction with your total due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover items like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that profit margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new consumers? Many times, companies have repeat customers, which create the core of their everyday profits. Specific aspects such as brand-new competitors growing up around the area, road building, and also personnel turnover can affect repeat clients and also adversely influence future revenues. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the higher the opportunity to develop a returning client base. A last idea 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 mean home income influence future income prospects?