Business Description
This construction company has two divisions. One does earthwork, grading, and asphalt paving for new construction and renovation projects of all kinds. Customers are mostly private entities.
The other division does asphalt and concrete repairs and maintenance for private and public entities such as property management companies (both commercial and residential), developers, general contractors, subcontractors, and numerous school districts.
Typically, the business has 45+ active customers, with 25-30 recurring customers every year. Somewhere between 60% to 80% of business is from repeat customers. There are over 300 customers in the database. With the new federal funding for infrastructure rehabilitation and construction, the company expects extensive growth in the short- and medium-term.
Typically, the business has work-in-process of $2,000,000 to $3,000,000, and a backlog of projects not yet started amounting to $500,000 to $900,000.
The business is housed in rented premises consisting of an office, repair shop, and yard space for the equipment.
Current rent is approximately $13,500 monthly, all in. Inside space is approximately 2,500 square feet, outside space is approximately an acre. A new owner can continue the lease arrangement pending approval of the landlord and buyer to ongoing terms.
Transaction Information
The asking price is $4,995,000 — about 50-55% of annual gross sales . The sale includes all assets, tangible and intangible, including but not limited to vehicles, equipment, tools, furniture and fixtures, customer records, databases, employee records, business name, logos, phone number(s), email address(es), vendor records, etc., except for accounts receivable, cash-on-hand, and the corporate entity itself, and also excluding all accounts payable and notes payable which will be satisfied by the seller at or before Closing. The specific assets acquired will be as explicitly set forth in the asset purchase agreement which will supersede any other description or enumeration.
It is important to note that we are offering the business for sale, not the corporation. In such a purchase, you would acquire all assets of the business, tangible and intangible, including the name, except for Accounts Receivable, Cash-on-Hand, and any rental security deposits. Resale inventory would be purchased on a "cost" basis or as negotiated. Also, you would NOT assume any accounts payable, notes payable, or any other debtor liability of the selling corporation. All physical assets would be conveyed to you free and clear of all encumbrances and liens.
The acquisition includes all furniture, fixtures, and equipment ('FF&E'). The current replacement value is somewhere between $2.0 and $2.5 million based on current insurance documents. All FF&E, including vehicles, to be conveyed to the buyer will be transferred free of all liens and encumbrances.
The current owner will be available for a smooth training and transition process.
