Business Overview

OVERVIEW:

Located in one of the fastest growing counties in Georgia, this company generates over $10,000,000 annually and operates 2 plants on just over 7 acres of land. The current owner has secured a second property with M2 permitting for another facility that will double the company’s geographic footprint. Many of their existing customers already service the second trade area and they would welcome the opportunity to use this company in the new marketplace.

Growing out of an infrastructure company focused on earth work, the concrete division began in 2017 and has grown year-over-year. The redi-mix division of the company today makes up 69% of the total revenue, selling 60,000 yards of concrete annually and growing. The earthwork division could keep pace with the concrete side of the business with more capital resources.

INVESTMENT HIGHLIGHTS/GROWTH OPPORTUNITIES:
– Additional mixer trucks would allow the company to more readily
meet existing demand out of the current plant.
– Opening the second location is estimated to double revenue within
24 months.
– Infrastructure work throughout the region is in very high demand
and that division of the company can be scaled well beyond what
they do today.
– Seasoned team in place, expected to stay post-acquisition.

REASON FOR SALE:

The owner is looking for the right partner to help take the company to the next level and would like to roll up to 25% equity into the new company and stay on in a capacity most beneficial to company growth.

Financial

  • Asking Price: $6,000,000
  • Cash Flow: $1,184,100
  • Gross Revenue: $10,598,830
  • EBITDA: $1,184,100
  • FF&E: $3,350,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 2017

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:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

2 Plants located on 7 Acres of Land in fast-growing Metro-Atlanta area

Purpose For Selling:

Part of Long-Term Exit Plan

Pros and Cons:

Large Competitors are firmly positioned in the market currently, with no threat of new competition moving in.

Opportunities and Growth:

2nd location secured with M2 zoning for a concrete plant in place.

Additional Info

The business was founded in 2017, making the business 5 years old.
The transaction shall include inventory valued at $100,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the genuine factor vs the one they tell you may be 2 entirely different things. For instance, they might state "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in profits, or a range of various other factors. This is why it is extremely important that you not depend totally on a vendor's word, however instead, make use of the vendor's answer together with your general due diligence. This will repaint an extra reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in brand-new customers? Often times, businesses have repeat consumers, which form the core of their day-to-day earnings. Certain factors such as new competition sprouting up around the area, roadway building, and also personnel turnover can affect repeat consumers as well as adversely impact future revenues. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the better the chance to develop a returning consumer base. A last idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local average home income impact future income prospects?