Listing ID: 80950

Business Overview

Great opportunity to take advantage of the continued growth in the Treasure Valley. The company provides traffic control services and equipment rental. The company has maintained a positive culture and has many long-term team members. They have a solid reputation for safety and quality work. They enjoy steady growth through referrals and through their network of customers. The company has a diverse client base and are not overly dependent on any one customer which is somewhat unusual in the construction industry.

Financial

  • Asking Price: $1,599,000
  • Cash Flow: $740,926
  • Gross Revenue: $2,928,727
  • EBITDA: N/A
  • FF&E: $603,071
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2013

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:28
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Currently the company operates out of a facility that they have outgrown. The owners have purchased land that is ready to begin developing a new facility. The land is available to purchase to proceed with the plans to relocate the business to this new home. This is also a perfect opportunity for a strategic buyer to consolidate operations of this business with a current location

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The company’s serves customers in many different industries. They provide traffic control for road work and other construction projects. They also provide services for events.

Purpose For Selling:

One of the owners is ready to retire.

Pros and Cons:

The construction industry is booming as is the support industries. Infrastructure projects are planned well into the future and signs are that the government will continue to invest in these types or projects. The Treasure Valley is often highlighted in national news as one of the fastest growing areas. This trend is expected to continue.

Opportunities and Growth:

There are exciting opportunities to grow the company either through adding new services or expanding the geographical footprint. The solid foundation of operations and reputation can be leveraged by a buyer to grow and expand. The opportunities are vast.

Additional Info

The business was established in 2013, making the business 9 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell companies. Nonetheless, the real factor vs the one they tell you might be 2 completely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or a variety of other factors. This is why it is very crucial that you not depend completely on a seller's word, however instead, utilize the vendor's answer combined with your total due diligence. This will repaint an extra sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract new clients? Many times, companies have repeat consumers, which develop the core of their daily profits. Specific aspects such as new competitors sprouting up around the location, road building and construction, and personnel turn over can impact repeat clients as well as negatively impact future revenues. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A final thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the local median house income impact future earnings potential?