Business Overview

Founded in the 1990s, the Company is a concrete construction contractor that specializes in paving, excavation, underground utilities, and site contract work projects.

The Company derives the majority of its revenue from concrete construction and a smaller portion from excavation, underground utilities, and site contract work. The typical customers of the Company are governmental entities, private organizations, and customers sourced through public bidding.

The Company is able to offer the same specialized services as larger conglomerates at a superior quality while additionally providing more personable transaction experiences. The Company differentiates itself from its competition by completing a majority of its projects with in-house labor rather than relying on outside services. The Company contributes to some of the most recognizable roads, cityscapes, and neighborhoods in its region.

The Company operates out of a facility owned by the same owners as the Business, under a separate entity. The building includes 770 square feet of office space and 3,500 square feet of warehouse space. The building is maintained regularly and is in excellent condition. The owners are open to selling or leasing the facilities to new ownership.

The Company is operated by two owners. Both owners are looking to retire. Current ownership is ready and willing to provide reasonable and ordinary transitionary assistance for new ownership.

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Financial

  • Asking Price: N/A
  • Cash Flow: $706,716
  • Gross Revenue: $3,259,614
  • EBITDA: $413,255
  • FF&E: $2,161,042
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:4,270
  • Lot Size:N/A
  • Total Number of Employees:15
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

One building totaling 4,270 square feet. The building was built in 2003 and is in excellent condition.

Is Support & Training Included:

Ownership is willing to provide reasonable and customary transition assistance.

Purpose For Selling:

Ownership would like to retire.

Pros and Cons:

Investment Highlights Include: (1) Established Reputation: Since its inception, the Company’s core focus has been on maintaining a reputation of reliable, high-quality service through consistently delivering projects on time and within budget. Due to its reputation of dependability and consistency, the Company continues to receive repeat business from customers. (2) Variety of Service Offerings: The Company is able to complete numerous projects outside of its core concrete construction focus. The Company’s wide range of capabilities and flexible approach allows it to act as a one-stop shop for customers. (3) Consistent Financial Performance: Since 2018, the Company’s revenue has remained stable between ~$2.7M and ~$3.4M. The Company has a proven track record of solid and consistent financial performance over its history of operations. (4) Long-Standing Customer Relationships: The Company has built relationships with some of the largest spenders in the Michigan concrete construction industry, including the Michigan Department of Transportation (MDOT). These customers require the highest quality and consistency in their work. The Company has been able to successfully navigate MDOT’s tight regulations and has established an efficient process to bid and complete government jobs.

Opportunities and Growth:

Growth Opportunities Include: (1) Penetrate New Markets: The Company currently focuses on governmental projects within its industry. A natural path to growth could be to expand further into commercial work. (2) Increase Sales Force: The Company’s current sales operations consist of the owners sourcing and bidding for opportunities as they arise through primarily government-related work. Because of this, the Company is limited to the projects the owners are able to bid on, among the owners completing other day-to-day tasks. To grow, the Company could look to hire additional sales personnel/estimators. (3) Expand Geography: The Company’s current geographic focus lies within a specific region. There is ample opportunity to expand upon the current geographic footprint. Additionally, government spending on road infrastructure in nearby locations is expected to increase significantly in the coming years.

Additional Info

The business has 15 employees and resides in a building with approx. square footage of 4,270 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell businesses. Nevertheless, the genuine factor and the one they say to you may be 2 totally different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of various other reasons. This is why it is very essential that you not rely entirely on a seller's word, but rather, utilize the seller's solution together with your total due diligence. This will paint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that profit margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in brand-new consumers? Most times, businesses have repeat clients, which form the core of their day-to-day earnings. Particular elements such as new competitors sprouting up around the area, road building, as well as staff turn over can affect repeat consumers and also negatively influence future incomes. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the better the chance to develop a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the local median family income influence future earnings potential?