Architectural, Engineering & Litigation Support

Houston, TX (Harris County)
Asking Price: $1,000,000
Business For Sale Details
Listed on Oct 11, 2023

When the founders of this architectural/engineering firm met at a college freshman orientation, little did they know that together they would launch a business that would span 4 decades and remain successful and financially profitable through the ups and downs of many different economic cycles. The firm opened its doors in 1980 and is still owned, managed, and operated by the original founders.

The firm is a general practice design firm, located in central Houston. The practice serves a variety of project types, including commercial, institutional, and residential projects. The principals have a wide range of architectural and engineering experience and skills which have enabled them to expand their practice over their 40-year history. They also offer due-diligence inspection services, remedial design services, and expert witness representation in support of parties involved in legal disputes

The Company has done exceptionally well, despite the Covid outbreak. For the year 2021 they were fully recovered with revenue and cash flow back to pre-covid levels and 2022 looks even better.

Both owners are aware of their importance to the success of the Company and retention of clients. As a result, one or both are willing to stay on for up to two years or possibly longer if need be. They are also willing to provide full-time services through either a consulting or employment agreement at a negotiated rate less than their current compensation. The Company understands that procuring bank or SBA financing would be extremely difficult and is willing to work with a buyer and carry a seller note. This would eliminate the need to apply to lenders and be subject to the harsh terms and restrictions they would demand in order to procure any level of institutional financing.

A sample deal structure for a seller note is as follows:
• Buyer would need to commit to a substantial cash down payment, 40%-50%.
• Seller/s would commit to an extended consulting/employment agreement, 1 to 2 years with options for further extensions of their involvement. They would also be on the Board of Directors until their consulting/employment agreement ends,
• The Seller note could contain a balloon note for full payout, the lower payment in the early stage of acquisition allows the Buyer to become financially and operationally secure before the balloon payment becomes due.
• Buyer would share regular (quarterly) financial statements to the Sellers.
• The Buyer would provide Personal Assets as collateral for the Seller Note.

The previously stated terms are intended to provide only a possible financing scenario and acceptable terms would need to be negotiated with each potential acquirer.

The company’s services break down into 3 general categories: Architecture, Structural Engineering, and Forensic Analysis services.

Architectural Services consist of the following:
* Planning and due diligence
* New residential design
* Residential remodeling design
* Commercial design
* Institutional design
* Historic preservation
* Construction Administration


Engineering Services consist of
the following:

* Structural design
* Structural failure analysis

Forensic Analysis has been a fast
growing category over the last
25+ years consisting of the
following:

* Code/Regulatory review
* Accessibility compliance
* Litigation Support
* Claim investigation

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Financials (USD)

Asking Price $1,000,000

Cash Flow $461,054

Sales $1,122,281

Deal Terms

Represented by broker? Available On Request

Buyer Fee? Available On Request

Seller Financing? Available On Request

Willing to co-broke? Available On Request

Principals only? Available On Request

Franchise? Available On Request

Management will stay? Available On Request

Relocatable? Available On Request

Real Estate? Available On Request

Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum. Read DealStream's Terms Of Use before responding to any listing. Learn how to stay safe in our marketplace.

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