Jun 20, 2020 — This profitable Company is a long-standing contractor specializing in steel fabrication, steel erection and industrial plant maintenance, rigging and machinery moving, and storage solutions. The Company provides these services to many industries, including automotive, schools and universities, military, commercial, manufacturing, power and energy, food and beverage, utilities, and industrial. Many of its customers are considered critical infrastructure and were allowed to operate fully during the COVID shelter-in-place order. The Company is 70+ years old and has developed a diversified service offering and customer base that is unmatched in its geographic region. In addition to its unique services, the Company owns an impressive equipment base of specialized equipment with an estimated fair market value of $2.71M.
The Company is and has been operational and experienced only a minimal volume decrease during COVID-19. Ownership did not lay off any core staff, and a number of field staff were laid off temporarily while some projects went on hold. The Company received a PPP loan. The Company has taken a proactive approach to the current conditions by putting together a COVID-19 Exposure Prevention Plan, Preparedness, and Response Plan. If the field workers do not pass the questionnaire, they must go home. The Company’s president predicts revenue to drop minimally and only because of the timing of projects being completed. Ownership feels well-positioned in a post-COVID environment and believes that some small projects will be delayed/postponed, but major customers will continue.
The Company has had four consecutive years without a recordable injury and values all its relationships with its employees. The Company has maintained a low turnover rate by industry standards, and most of the key staff have over 20 years of service with the Company. Most employees retire with the Company rather than seek out new employment. The Company is dedicated to its employees, which has created an outstanding culture and special place to work.
This Company is owned by two owners – passive owner (75%) and active president (25%). The Company owns its current facility and is available for sale or lease. The president is the leader of the Company, deeply involved in all areas of the Business. He grew up working in the Company, so he understands all facets of the Company’s operations from estimating to performing the work. The passive owner serves as the Company’s chairman of the board. He owns a separate real estate company that owns warehouses, and the Company leases some of these warehouses for customer storage. The passive owner is in his early 70’s and wants to scale down, and he does not have any family members interested in buying him out. The president is interested in finding a buyer/party to buy and help him grow the Company. Both owners will help the buyer(s) transition into the Business.
Buyers will be required to have a minimum of $300,000, solid credit, and preferably industry experience to qualify for SBA 7a financing.
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