Business Overview

Exceptional construction services company providing essential (required) services required for construction projects with $2.1 million sales, 31% growth, $802,287 Discretionary Earnings, and $652,287 EBITDA is offered for acquisition with SBA financing. The business is pre-approved for 10% down with SBA financing for qualified buyers.

The company provides required on-site construction services for commercial developers and contractors on government and commercial projects (no new home construction). Typical projects include hospitals, schools, universities, government projects for cities, counties and the state as well as commercial projects.

The company has had steady growth and is well-positioned for continued growth. The owner-seller has built a company with excellent procedures and a team of 10 employees including technicians and office admins.

The company has a reputation for delivering excellent quality, timely completion of their work, and professional staff performing the onsite work.

Summary:
* Offered at $2.2 million
* $2.1 million sales 2021
* $802,287 Discretionary Earnings 2021
* 31% growth in 2021
* $245,000 Down w/SBA Financing
* 10 employees
* 5 Service Trucks + one equipment trailer

Staff
* 7 well-trained technicians
* Dispatch/office admin
* Bookkeeper
* Certified Payroll/office admin

Buyer Skills and Requirements:
The owner is actively running this business and the buyer must be willing and capable of learning to run the business. The owner does not necessarily have to have direct experience in this field, but they must be willing and capable of learning the technical aspects of the business. This is not a passive owner business.

The owner has a Contractor License and will act as the RMO (Responsible Managing Officer) for the buyer for up to 12 months (maximum allowed by SBA). The buyer will have to obtain their Contractor’s license within 12 months. The Seller will provide training for 4 weeks/40 hours per week and in addition, will provide limited consulting as negotiated after the initial training period.

Reason for Selling:
The owner is starting a new business that does not compete with this business and will be a customer of this company.

Inquiries from principals only

Financial

  • Asking Price: $2,200,000
  • Cash Flow: $802,287
  • Gross Revenue: $2,100,000
  • EBITDA: $652,287
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2001

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:8
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The Seller will provide training for 4 weeks/40 hours per week and will provide limited consulting as negotiated after the initial training period.

Purpose For Selling:

The owner is starting a new business that does not compete with this business

Pros and Cons:

Limited competition in this company's niche

Opportunities and Growth:

Growth opportunities through geographic expansion, hiring additional staff, increasing advertising budget, and adding additional services.

Additional Info

The business was founded in 2001, making the business 21 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell companies. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may claim "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competitors, recent decrease in earnings, or a range of various other reasons. This is why it is very important that you not rely absolutely on a seller's word, however instead, use the seller's solution combined with your total due diligence. This will paint a more realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover points like supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new clients? Often times, businesses have repeat consumers, which create the core of their day-to-day earnings. Specific elements such as new competition sprouting up around the area, roadway building and construction, and also personnel turnover can influence repeat customers and negatively affect future earnings. One vital point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the local median home income impact future earnings prospects?