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This well-established Concrete Contractor services commercial and industrial clients in the New Jersey and New York metro region. The company has experienced significant revenue performance for many years and enjoys increasing net operating margins with documented profitability. In 2019, the company substantially revamped its sales structure, eliminating low margin accounts and solely focusing on high profitable customers. Accordingly, sales were cut significantly, while maintaining total margins through the process. The Company has a total of 4,000+ SF in facilities (office, garages, yard) providing a strong base of operations, storage capacity and room for 25% revenue growth.
The Company enjoys a strong competitive advantage by way of (i) brand name recognition through high customer retainage gained over the years and (ii) extensive experience in navigating the challenging NY construction market. The Company has a long-standing industry reputation for strong project management – consistently delivering more value to its diversified customer base. There is significant growth potential in the target market with minimal capital infusion (currently turning away opportunities) – an aggressive marketing effort with a slight team expansion could grow top line by 25% to $7.5M in five years.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 3.5x EBITDA (ttm). A full valuation report by an accredited national valuation firm is included in the prospectus. There is $100k in debt to be assumed and the deal includes $625k in fixed assets plus $150k in net working capital. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner- operator will obtain over $230,000 benefit in after-acquisition-debt cash flow in Year #1.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a consulting agreement thereafter if so desired. A very well trained and highly qualified management team will stay in place and support the new owner in all aspects of the business.
(ALL DATA BASED ON SIGNED TAX RETURNS)
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