Listing ID: 82565
Business Overview
This Washington state company is a profitable, professional company specializing in asphalt paving, decorative stamping, driveway paving, patching and seal coating. They provide asphalt repair and patching services to customers on-demand and through service-level agreements. Operating for nearly 20 years, they continue to be an extremely profitable company with over $2.5M in work contracts committed for completion so far in 2021. Due to the quality provided, the company is experiencing a significant increase in demand for work. Customer completion times have increased to 5 months and customers are more than willing to wait to have it completed. The business is primed for new ownership through solid relationships from suppliers, customers and contracts with many regional area businesses in need of paving work. Primary clientele include residents who own homes, or businesses in need of asphalt paving products. The company has a proven track record of being able to stay ahead of market trends, new technologies, and changing trends in the types of asphalt paving products gaining popularity in the marketplace. With its range of products and services, marketing efforts focus on targeting repeating business utilizing its loyal customer base, and long history of satisfactory work. By providing repair services, the company maintains an even higher presence in the market by being able to capitalize on its customers entire paving and asphalt needs. In 2021, the total revenue was $1,747,385 with Seller’s Discretionary Earnings of $486,144. Just purchased are 2 pieces of equipment for $405,000 which have added to the price. Real Estate is not included in the price but can be purchased at appraised value.
Financial
- Asking Price: $1,900,000
- Cash Flow: $486,144
- Gross Revenue: $1,747,385
- EBITDA: $364,543
- FF&E: $1,211,323
- Inventory: N/A
- Inventory Included: N/A
- Established: 2002
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
Property is Available for separate purchase outside of Asking Price.
Standard Owner Transitioning of 12 months.
Approaching retirement and/or pursuing other interests.
Additional Info
The company was established in 2002, making the business 20 years old.
The business has 9 nonunion. employees and is located in a building with estimated square footage of 2,500 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you may be 2 absolutely different things. For instance, they might say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be reasons to try to hide the reality of changing demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is very essential that you not rely absolutely on a vendor's word, but rather, make use of the seller's solution along with your overall due diligence. This will repaint a more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover things such as supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Most times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular aspects such as new competition growing up around the area, roadway building, and also personnel turnover can influence repeat consumers as well as adversely affect future revenues. One important point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the possibility to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the regional typical home earnings impact future income prospects?
