List Price: $680,000
Owner Profit/Cash Flow
YOY Growth: 27% Increase in Cash Flow from 2014 to 2015
Profit Margin: 23%
2015 Cash Flow x Multiple = Price
$220,324 x 3.1 = $683,004
This seasonal business generates over $250,000 in profit in only 9 months out of the year. This construction company lays flat concrete including driveways, sidewalks, patios, parking lots, and pool decks and steps. After 18 years of providing quality service, this business has developed a loyal group of about 20 commercial clients as well as numerous residential clients.
This company mostly does flat work, which means they repair curbs, sidewalks, and parking lots. The business is currently having to turn away business because of their lack of resources to complete all the jobs they are being asked to do. A Buyer could quickly expand the business by hiring additional workers to take on these projects. The crew works almost straight through from March until December without any down time between projects now. The equipment for these projects are kept in a 4,000 sq. ft. facility with an office space within it.
After the first year, a Buyer can expect a Net Operating Income (Profit) of $125,224. With the many growth opportunities that can be easily taken advantage of, the return on investment has the potential to be much higher.
Assets Included in Purchase: $150,000
Equipment: 4 Trailers, 2 Power Buggys, 2 Plate Compactors, 2 Skid loaders, Air Compressor, Generator, 7 Saws (Concrete and General), Multiple Drills
Vehicles: GMC Sierra and Topkick, Chevrolet Silverado and C3500, Ford F350
Intangible Assets:Loyal Clientele Base, Many Untapped Sources of Sales
*amounts may vary
Location and Service Area: Omaha, Nebraska
Clientele: 20 Regular Commercial Clients, less than 10% are Residential Clients; Jobs Range From $5,000 to $100,000; Mostly Flat Work, meaning they repair curbs, sidewalks, and parking lots
Building: 4,000 sq. ft. with parking for trucks and equipment, 1,000 sq. ft. is heated office area
Reason for Selling:Retirement
Employees: 6 Full-time, Seasonal from March to December
Hours: Monday to Friday: 7AM – 3:30PM
Seller Training Period: 90 Days
Growth Opportunities: Hire additional employees to take on work that is currently being turned away; New Construction
Current Owner’s Responsibilities: Gives Bids, Bills for Completed Work, Often Works with Employees
10% Buyer Down Payment:$68,000
20% Seller Financing:$136,000
70% Bank Loan:$476,000
After all debt services are paid, a buyer can expect to receive a Net Operating Income (Profit) of $142,930 in the first year. This represents a 210% return on initial investment.
Due to seasonality of the business, the first loan payment to the Seller will not be due until Spring 2017.
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.