Inspection & Testing of Construction Materials Business For Sale

Business description

Founded in 1991, this highly-regarded woman-owned company (woman-owned status relates to between 10-25% of sales on an annual basis) provides construction materials inspection and testing services (concrete, steel, masonry, soil) and ancillary engineering services in the greater Washington, DC metro area and southern PA. It supports contractors that build airports, highways, sewer and stormwater managment projects and other public and private construction projects. Examples of its work include testing concrete to determine that compression strength (measured in pounds of pressure applied until a breaking point is reached) is what was specified by the architect or that the bolts holding together a steel structure are tightened correctly and the welds have no cracks. The firm is involved in many of the larger public and private construction projects in the greater Washington, DC metro area. Approx. 70% of the company's end-users are public projects; 30% commercial. Annual sales are over $3,5M; current backlog is almost $4M. Approx. 60% of work is derived from existing customers and contracts and is not competitively bid. 30% comes from referrals and bids with the remaining 10% from marketing efforts. Although many of its workers are certifed by various organizations and although the company employs several professional engineers, the owner is not and does not need to be an engineer or have any certifications. Managment (current vice-president) is in place and willing to stay on with the new owner. The owner wants to retire, but will stay on for transitional or longer-term employment. All equipment used in the business as well as $2,000,000 in net current assets (current assets minus current liabilities) are included in the $5M price .

Property information

Real Estate:

Lease

Lease terms:

The company leases approx. 4K s/f of office space in a 7,904 s/f building owned by the company president and owner. The space houses the company's headquarters and a testing lab.The remaining 3,904 is occupied by another company. The new owner can either purchase the entire building for $575,000 (in addition to the business purchase price) or rent the existing business leasehold at the rate of $6,800 per month. The company also occupies two other office/lab facilites, one located at Dulles International Airport and the other in Washington County, MD.

Other information

Expansion potential:

Management believes that the company can be grown quite aggressively by geographic expansion to nearby areas, by marketing its field and professional engineering services

Competition / Market:

Although some competition exists in each of the services this company provides, no other company in its market provides the full range of services that this company provides.

Support & training:

Management is in place, as the company vice president (operations) is willing to stay on with the new owner. The owner will stay through a transitional period and is willing to consider a longer-term arrangement.

Reasons for selling:

Retirement.

Financing available:

Financing is available for qualified buyers.

Inventory / Stock value:

$2,000,000

Contact the seller