Listing ID: 77188
This company has been in the business of cutting concrete for over 25+ years. Their clients are typically commercial customers (tenant improvements, restaurants, retail, etc. ) in OC, LA and the Inland Empire, but they also service the occasional residential customer. The business is located in central OC and offers quick access to the 5, 405, 91 and toll roads to handle any job throughout the region.
The business is straightforward: they are contacted to provide an estimate, and when awarded the job, they cut the concrete and haul away the debris. The business comes with all the equipment you need to perform the work: the equipment is stored indoors, cleaned after each use, and very well-maintained. The employees are loyal and experienced; many have been with the company for 20+ years. The owners also have a broad network of experienced subcontractors for jobs that require specialized expertise. The equipment yard is very large, and the studio office space offers ample workspace and equipment storage.
The two owners split the responsibilities of running the business. The CEO handles all field operations, sales and estimates; the CFO is responsible for billing, collections, vendor payments, monthly reporting and taxes. However, it’s time for this dynamic duo to go their separate ways: one owner (who handles the CFO role) wants to retire, but the other (CEO) owner isn’t quite ready yet, and is willing to stay on and oversee the operation. This is an excellent opportunity for a business minded Buyer to step in and grow the business. The current owners do zero advertising, and have gotten this far on word of mouth alone; business is historically steady and consistent year-over-year This is an opportunity for a Buyer to step in, branch out to new markets (ADA access and compliance, new construction etc.), and for gosh sakes advertise! The current owners have no digital footprint whatsoever: no website, no social media … no online presence at all. We live in the technology age, and despite being successful for decades, there is so much room to market and grow this business!
If you’ve considered entering the concrete industry, are expanding your current construction company, or want to increase your annual income by $100k+, then this business is the opportunity for you! Reach out to the Agent for more information today!
- Asking Price: $249,000
- Cash Flow: $163,656
- Gross Revenue: $814,226
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,072
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Yes, Owner willing to stay on as an employee and oversee operations.
The venture was started in 1995, making the business 27 years old.
The company has 5 employees and is situated in a building with approx. square footage of 6,072 sq ft.
The property is leased by the business for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell businesses. Nonetheless, the genuine reason vs the one they say to you may be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of other reasons. This is why it is very essential that you not count completely on a vendor's word, yet instead, utilize the vendor's answer together with your total due diligence. This will repaint a much more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too tight. Numerous 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 additionally 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 contracts with suppliers that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in brand-new customers? Most times, operating businesses have repeat customers, which form the core of their day-to-day profits. Certain aspects such as brand-new competition sprouting up around the area, road building and construction, and staff turn over can impact repeat clients as well as negatively impact future profits. One crucial thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning consumer base. A final thought is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local typical house income influence future income potential?