Commercial Construction General Engineering Contractor, San Francisco Bay Area

Location

San Francisco Bay Area.

Business Description

This profitable business is engaged in general engineering construction contracting, including underground construction and paving. Particularly engaged in sustainable, consistent, ongoing services for the telecommunications industry consisting of directional boring, open trenching, rock saw trenching, asphalt removal & replacement, concrete removal & replacement, and paving.

Within the past year, the company has added an aerial cabling division in response to demand from existing customers. While primarily operating in northern California, during 2022 the company expanded into Oregon and is slated to enter the Nevada market by mid-2023.

The acquisition includes all furniture, fixtures, and equipment ('FF&E') with an estimated market value of about
$6,000,000. All FF&E, including vehicles, will be conveyed to the buyer free of all liens and encumbrances.*

While the current owner is actively engaged in the business, he does spend time on other unrelated business.
His position could be described as “half-time” or “semi-absentee.” He will be available for a smooth training and
transition process and may be available on a long-term basis at the option of the buyer.

Financial Summary

• Annual Sales: $9,425,000
• Annual SDE: $1,600,000 - $2,000,000
• FF&E: ~$6,000,000 +/-

Sales for 2023 estimated/projected to be over $10,000,000

Asking Price: $8,000,000

- Subject to negotiation, terms, and timing.
- All reasonable offers will be considered.
- Some seller financing possible.

Investment Rationale

The market reach and potential growth are unlimited based on expansion of the geographic area served and related services that could be added. Current customers include Verizon, AT&T, and Comcast, for example.

Based upon current project negotiations, the company anticipates 2023 sales of $10 million plus.

Customer Overview

Customers consist of major telecommunications and other Fortune 500 companies throughout northern California and Oregon. The company employees over 50 personnel consisting of office staff, field management, and 5 production field crews of 6-8 men per crew. It was established in 2009 and carries a Class A & B Contractor License.

Transaction Information

The asking price is $8,000,000, about 85% of annual gross sales. However, the seller will consider all reasonable offers and will accept an offer based on a combination of price, terms, and timing. The sale includes all assets, tangible and intangible, except for accounts receivable, cash-on-hand, rental property deposit(s), and the corporate entity itself. All accounts payable, notes payable, and encumbrances will be satisfied by the Seller at or before Closing from the Seller's funds.

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, sash-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 debt or liability of the selling corporation. All physical assets would be conveyed to you free and clear of all encumbrances and liens. *A detailed "FF&E" list of all significant physical assets (e.g., vehicles, equipment, tools, etc.) will be provided to prospective buyers during discussions.