PRICE: $7,200,000
ANNUAL REVENUE: $24,255,533
NET CASH FLOW: $1,521,759
INDUSTRY: CONSTRUCTION
LOCATION: FLORIDA
This established commercial construction company specializes in commercial construction and design/build services and has a solid reputation for excellence in the state of Florida.
The company has a strong track record of completing a wide range of projects across various sectors, including medical, office, retail, educational, storage, restaurant, religious, and municipal.
In 2022, the company generated $24.3 million in revenue, showcasing its financial strength. Despite the challenges posed by the global pandemic, it stabilized the gross margin at 11%. The Seller’s Discretionary Earnings (SDE) increased to $1.5 million in 2022, up from $1.0 million in 2020.
Note: (*) refers to revenue in 2022 that comes from long-term customers or multi-year projects.
Team: CEO – 1 FT, Director of Ops – 1 FT, Accountant – 1 FT, Administrative – 1 FT, Project Managers – 2 FT, Asst. Project Manager – 1 FT, Estimator – 1 FT, Site Supervisor 4 – FT. The company also has occasional day labor on each job site for mostly clean-up activities.
Services and Clients: The company provides full-suite construction & contractor management, and design services for commercial and institutional clients. Its expertise extends to clients in medical offices, assisted living facilities, self-storage, churches, school districts, universities, food service, municipal, tech, and aerospace amongst others. Most of the company projects are negotiated or repeat projects, with very little bidding done – 70% long-term client revenue (*).
Project Pipeline – The company possesses a robust project pipeline consisting of contracted projects worth $24.2 million and has signed agreements for upcoming projects totaling $13 million. This pipeline ensures a steady stream of projects and presents an excellent opportunity for the acquiring party to capitalize on future business prospects.
LISTING DETAILS
Reason For Sale:
After many decades of working in the industry, the owner is seeking to transition into retirement. Recognizing the importance of timing, the decision has been made even though the business is currently experiencing positive tailwinds.
The owner is confident that the business can be handed over to the right buyer who will continue to uphold the established reputation and capitalize on the existing profitability.
Training & Support:
The owner is open to the possibility of providing part-time consulting services for a limited period of 6 to 9 months.
OPERATION
Employees: 11 full time and occasional day labor
SUMMARY
Competition:
Locally the company competitors, of comparable size, have mostly good clients. The company differentiates itself by leveraging vast project experience, competitive pricing, and best practices in terms of project management.
Florida competition (main):
- Certified General Contractors
- MH Williams Company
- Rush Construction
Potential Growth:
There is a high demand for storage and assisted living in Florida (especially Florida’s Space Coast), as the state population is rapidly increasing causing the need for new school districts, universities, and major employers to expand their facility space. The company is uniquely positioned and staffed to meet the construction needs of various sectors to accommodate this growth.
