Cash Flow Strong Heavy Civil Construction Company

This well-known Heavy Civil Construction Company in the Northeast provides road construction and bridge repair as well as water, sewerage & drainage systems and pump stations. The firm enjoys significant operating margins and documented profitability with considerable owner benefit. This business currently operates from 2.75 Acre facility with 6,700 SF of office, storage and vehicle/equipment repair and maintenance space.

The company enjoys a strong competitive advantage in its service area as a result of a twenty- year history of successfully bidding and completing multiple state and local construction projects.

It is projected that a new owner will obtain significant additional growth by bidding aggressively in its current target area and by expanding their efforts into neighboring regions which will require minimal additional investment. This effort will allow the company to grow upwards of 20% annually with significant gross margins.

The company has been fully reviewed and internally appraised at 3.2 x EBITDA (2024). There is $1,450,000 in Net Working Capital plus another $6,690,000 in Fixed Assets included in the deal. By implementing the proposed deal structure, an owner operator will obtain more than $1,600,000 benefit in after-acquisition-debt cash flow in Year #1 – over 75% return on equity investment.

A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.

(ALL DATA BASED ON SIGNED TAX RETURNS)