Business Overview

Profitable commercial construction general engineering contractor, with recurring Fortune 500 customers, over 50 employees, and extensive equipment and vehicles. In San Francisco Bay Area.

Typical annual sales close to $7,500,000, with typical SDE for the owner-manager of about $1.4 million. Asking price is $8,000,000, subject to negotiation, terms, and timing. Some seller financing possible. All reasonable offers will be considered.

Profitable commercial construction general engineering contractor, with recurring Fortune 500 customers, over 50 employees, and extensive equipment and vehicles.

Typical annual sales are close to $7,500,000, with EBITDA of about $1.9 million. The asking price is $8,000,000, subject to negotiation, terms, and timing. Some seller financing is possible. All reasonable offers will be considered.

This profitable business is engaged in general engineering construction contracting, including underground construction and paving. Particularly engaged in sustainable, consistent, ongoing services for the telecommunications industry consisting of directional boring, open trenching, rock saw trenching, asphalt removal & replacement, concrete removal & replacement, and paving.

Customers consist of major telecommunications and other Fortune 500 companies throughout Northern California. The company employees over 50 personnel consisting of office staff, field management, and 5 production field crews of 6-8 men per crew. It has bee in business for over a decade and carries a Class A & B Contractors License.

The business is housed in a warehouse/office space and yard space for vehicles & equipment at rent of approximately $9,000 per month in an industrial area. A new owner can continue the lease arrangement pending approval of the landlord and buyer to ongoing terms.

The acquisition includes all furniture, fixtures, and equipment (‘FF&E’) with an estimated market value in excess of $3,000,000. All FF&E, including vehicles, will be conveyed to the buyer free of all liens and encumbrances.

The current owner will be available for a smooth training and transition process.

The market reach and potential growth are unlimited based solely on expansion of the geographic area served.

Gross Revenues in 2020 (COVID Year) were $6,826,000, with EBITDA calculated at $1,831,00.

Gross Revenues in 2021 were $7,338,000, with EBITDA calculated at $1,985,000.

Based upon current negotiations, the company anticipates 2022 sales of $10 to $12 million.

The owner-manager in salary, benefits, and perks earns about $300,000 per year, which would be added to EBITDA to determine Seller’s Discretionary Earnings (“SDE”).

The Transaction: The asking price is $8,000,000. However, the seller will consider all reasonable offers and will accept an offer based on a combination of price, terms, and timing. The sale includes all assets, tangible and intangible, except for accounts receivable, cash-on-hand, and the corporate entity itself, and also excluding all accounts payable and notes payable which will be satisfied by the seller at or before Closing.

It is important to note that we are offering the business for sale, not the corporation. In such a purchase, youwould acquire all assets of the business–tangible and intangible, including the name–except for Accounts Receivable, Cash-on-Hand, and any rental security deposits. Resale inventory would be purchased on a “cost” basis or as negotiated. Also, you would NOT assume any accounts payable, notes payable, or any other debtor liability of the selling corporation. All physical assets would be conveyed to you free and clear of all encumbrances and liens.

Exclusive Broker: Tim Cunha, J.D.
California DRE License #01919755

Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of appropriate qualified professionals prior to purchasing the Business.

Financial

  • Asking Price: $8,000,000
  • Cash Flow: $1,900,000
  • Gross Revenue: $7,500,000
  • EBITDA: N/A
  • FF&E: $3,000,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2009

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:50
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Reasonable training and transition support to be negotiated

Purpose For Selling:

Retirement

Additional Info

The business was started in 2009, making the business 13 years old.

The company has 50 employees and resides in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $9,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell companies. Nonetheless, the genuine factor vs the one they say to you may be 2 totally different things. For instance, they might state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or a variety of various other reasons. This is why it is extremely crucial that you not depend entirely on a vendor's word, but instead, use the vendor's solution along with your overall due diligence. This will repaint a more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too small. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract brand-new consumers? Many times, operating businesses have repeat customers, which develop the core of their everyday profits. Specific elements such as new competition growing up around the location, road construction, as well as personnel turn over can influence repeat clients and also adversely impact future profits. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median household income effect future earnings prospects?