MergerPlace

Upper Iowa Niche Concrete Business

Iowa


  • Asking Price: $1,200,000
  • Gross Income: $1,700,000
  • Cash Flow: $221,000
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $597,082
  • Listing ID: #220945
  • Established: 1984
  • Employees: 2 FT / 2 PT

Business Description

This niche concrete contracting company provides a service to municipalities as well as the private sector. Operating with a relatively small crew, this company is structured to produce large average tickets on jobs resulting a solid profit margin on jobs completed.

The owner focuses on job quotes, project management and on-site management. The owner has one full-time employee and a few part-time (seasonal) employees that take care of additional on-site duties, driving truck, hauling equipment to and from sites, one other employee takes care of office management and administrative duties.

This business has a backlog of $1,700,000 of jobs bid and won for the 2020 season with another $870,000 in revenue that will carry on to the following year.


Business Details

Primary Business Category: Construction - Building, Developing
Location: Iowa

Company Information

Year Established: 1984
Home Based: No
Franchise: No
Relocatable: Yes
Number of Employees: 2 FT / 2 PT

Financial Information

Asking Price: $1,200,000
Gross Revenue: $1,700,000
Cash Flow: $221,000
FF&E: $597,082
Seller Financing Available: No

Property Information

Facilities:

The seller operates out of a light industrial building. The building was built in 2000 and is 54' x 90' x 14' (4,860 sq.ft.). Inside this building is a shop and cold storage. A 22' x 90' addition was added in 2014. This addition includes an office and more cold storage. In 2017 a 40' x 60' x 16' pole shed was erected which is all cold storage. The pole shed has power and loft storage for parts. The shop area in the original building is heated and cooled with a full bathroom. The office has its own HVAC, bathroom and closets. The buildings are located on a 2.85 acre parcel within city limits. The real estate is available but not included in the list price for the business.

Growth & expansion opportunities:

The potential for growth is a real possibility. This company does virtually no advertising. By adding more staff as well as a qualified project manager... more jobs could be bid, won and scheduled. To actually double the revenue would be a real possibility. Depending on the year, the weather is really the biggest factor in growth and completing the projects. A great time to recruit new staff and ramp things up would be during the down/slow time (Jan. - Mar.).

Competition:

The competition in this industry is mature. With that said, there is a strong barrier to entry due to bonding and state requirements which make it difficult for new startup companies to enter the marketplace.

Reason for selling:

The seller would like to scale back and transition more towards retirement.

Support & Training:

Will train for 4 weeks @ no cost A buyer should be coachable, trainable and one who does not want to reinvent the wheel. Industry knowledge and/or prior experience will be helpful but not required as everything can be taught. This business has a list of different licenses, registrations, permits, etc. available upon request for qualified buyers to review.

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Business Listed By:

Bryan Mulder

Murphy Business Brokers