Business Overview

Extraordinary business established over 40 years ago providing asphalt and concrete paving, in addition to related maintenance services, such as, pavement markings, sealcoating, crack filling, signage, wheel stops, etc. The business is very well known and enjoys an outstanding reputation. Recurring business generates approximately 80% of current revenue. The business is well run with an EBITDA margin of 16%. The company has excellent books and records.

Financial

  • Asking Price: $3,700,000
  • Cash Flow: $914,000
  • Gross Revenue: $4,770,000
  • EBITDA: $764,000
  • FF&E: $300,000
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 1980

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,296
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The 31,738 square foot land parcel is improved by an 1.5 story frame building used primarily as office space and several storage sheds and buildings. The improved parcel is owned in a separate legal entity. The owner also leases an approximately 500 square foot trailer used for additional office space. The real estate can be available for lease or purchase at fair market value.

Is Support & Training Included:

Owner will provide transition training and assistance as mutually negotiated.

Purpose For Selling:

Owner desires to retire.

Pros and Cons:

Although there are competitors in the region, business has been established for over 40 years. The owner maintains a comfortable revenue and profitability level and has not desired to further grow the business. The business currently has no active marketing, other than word-of-mouth.

Opportunities and Growth:

The business can be grown and expanded through updated marketing programs, supplementing its current word-of-mouth strategy.

Additional Info

The company was founded in 1980, making the business 42 years old.
The transaction shall not include inventory valued at $5,000*, which ins't included in the requested price.

The company has 20 approx employees and is situated in a building with disclosed square footage of 1,296 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. However, the real reason and the one they say to you might be 2 totally different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is extremely essential that you not count absolutely on a seller's word, but rather, make use of the seller's solution combined with your total due diligence. This will repaint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new clients? Many times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Specific elements such as brand-new competitors growing up around the location, roadway construction, as well as staff turn over can impact repeat consumers and also negatively influence future incomes. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood typical house income impact future income potential?