Commercial Building Contractor, Long-Term Clients

This established commercial construction company specializes in commercial construction and design/build services and has a solid reputation for excellence in Florida.

The company has a strong track record of completing various projects across various sectors, including medical, office, retail, educational, storage, restaurant, religious, and municipal.

In 2023, the company generated $18.7 million in revenue, showcasing its financial strength. Despite the challenges posed by the global pandemic, it stabilized the gross margin at 8%. Notably, the Seller’s Discretionary Earnings (SDE) were $0.71 million in 2023.

2023 had a slower start than anticipated, primarily because of delays in a few projects (delays related to design and permitting issues). The revenues are around $18.7m, with an SDE of 0.71 million. Most of the delayed projects have restarted in H2, and the management estimates that the company SDE will be around $1.5 million by the end of 2024, with a gross profit of $2.5 million.

Note: (*) refers to revenue in 2022 that comes from long-term customers or multi-year projects.

Services and Clients: The company provides full-suite construction & contractor management, and design services for commercial and institutional clients. Its expertise extends to clients in medical offices, assisted living facilities, self-storage, churches, school districts, universities, food service, municipal, tech, and aerospace amongst others. Most of the company projects are negotiated or repeat projects, with very little bidding done – 70% long-term client revenue (*).

Project Pipeline – The company possesses a robust project pipeline consisting of contracted projects worth $41.7 million and has signed agreements for upcoming projects totaling $10 million. This pipeline ensures a steady stream of projects and presents an excellent opportunity for the acquiring party to capitalize on future business prospects.

Transition Support: The owner is open to the possibility of providing part-time consulting services for a limited period of 6 to 9 months.

Reason for Selling: After many decades of working in the industry, the owner is seeking to transition into retirement. Recognizing the importance of timing, the decision has been made even though the business is currently experiencing positive tailwinds.
The owner is confident that the business can be handed over to the right buyer who will continue to uphold the established reputation and capitalize on the existing profitability.

Competitive Landscape: Locally the company competitors, of comparable size, have mostly good clients. The company differentiates itself by leveraging vast project experience, competitive pricing, and best practices in terms of project management.
Florida competition (main):
1. Certified General Contractors
2. MH Williams Company
3. Rush Construction

Growth and Expansion Opportunities:
There is a high demand for storage and assisted living in Florida (especially Florida’s Space Coast), as the state population is rapidly increasing causing the need for new school districts, universities, and major employers to expand their facility space. The company is uniquely positioned and staffed to meet the construction needs of various sectors to accommodate this growth.