Extremely Profitable Self-Performing Site Wall Construction Company

Summary Information

Internal ID:
Price:
Total Sales:
EBITDA:
Seller Discretionary Earnings:
FF&E:

Industry:
Year Established:

Days and Hours of Operation:
Reason for Sale:
Listing Status:

BUILD4

$35,000,000

$25,480,810
$6,583,677
$6,658,677
$182,164

Building and Construction
2003

M-S 8-5
Other Interests
Active

Summary

Description:

The company is a self performing commercial specialty construction firm. All work is performed in-house (not sub-contracted) by 21 crews (ao April 2022). Revenue is derived from approximately:
* 2% government/municipal
* 3% Institutional
* 35% Commercial to developers
* 60% Residential to developers
* 0% Home Owners
The company is focused on value engineering the entire worksite which provides a competitive advantage. Unlike many construction companies, this company chooses to rent its construction equipment which provides flexibility and transfers maintenance, relocation, storage, and insurance responsibility to rental firm. The expense fluctuates, but is approximately $130,000 per month. Leased wide-format copier/scanner/fax and A-E size color plotter/scanner will be transferred to buyer and are not included in FF&E. The company averages $1,500,000-$2,000,000 of open WIP, $2,500,000-$3,000,000 of awarded contracts not yet begun and $2,500,000-$3,000,000 in outstanding pending bid proposals. The approximate required working capital is $600,000. Bonding projects represent approximately 1% of gross revenue. EBITDA is estimated assuming two executive salaries of $150,000 each. Price in asking price is for database sorting purposes only. Sellers expectations are based on a multiple of earnings.

Historical Summary:

The owners have worked in the industry for approximately twenty years. The company has grown consistently since inception. First year revenue was $91,900 with year over year increases annually through 2022 approaching $26,000,000 with 17.8% average annual top line revenue growth.

Competition:

Competition is comprised of companies that perform similar services. No other construction company has grown as fast as this company in North Carolina - all while being 100% self-performing.

Growth and Expansion:

The current owners have intentionally managed growth to allow for more personal/family time. Owners 2021 estimate of $20,000,000 in revenue was based on minimal staffing increases and was over $22 million actual. The Sellers believe that experienced operators could increase gross sales by as much as 100% within 12 months by expanding into other North Carolina markets.

Location

Location:

Facilities Type:

Monthly Rent:

Building Square Feet:
Facilities Description:

Central North Carolina

Office Condo

$1,500

1050

The business is operated from a location on a major thoroughfare in Wake County, NC. Adequate parking is available. The building is available for purchase. If purchased the property will be sold at bank's actual appraised value which may be higher or lower than the estimated $130,000.

Labor

Full-time Employees:
Part-time Employees:
Contractors:

10
1
80

Support and Training

Owner qualifications:

Buyer(s) will need to possess or retain employees on staff carrying a North Carolina General Contractors License and for engineering, a NC Board of Engineers and Land Surveyors Professional Engineering License (NCBELS) licensed engineer with prescribed equity as reflected in the NC Secretary of State filings.

Support and Training:

Seller will negotiate terms of transition assistance and/or consulting agreement

Support and Training Comments:

Owners are open to long-term employee contracts at market rates up to 5 years.

Seller Financing

Seller Financing:

Yes, Seller will provide significant financing over 20%

Seller Financing Comments:

Dependent upon overall transaction. Seller financing percent includes earn-out.

LISTING BROKER

Jeff Snell, CM&AP, M&AMI, LCBI, ABI

Jeff Snell, CM&AP, M&AMI, LCBI, ABI
REAL ESTATE TRANSACTION HANDLED BY

2009 Caminos Drive
Raleigh, NC 27607

Summary Information

Internal ID: BUILD4
Price: $35,000,000
Total Sales: $25,480,810
EBITDA: $6,583,677
Seller Discretionary Earnings: $6,658,677
FF&E: $182,164

Industry: Building and Construction
Year Established: 2003

Days and Hours of Operation: M-S 8-5
Reason for Sale: Other Interests
Listing Status: Active

Summary

Description:

The company is a self performing commercial specialty construction firm. All work is performed in-house (not sub-contracted) by 21 crews (ao April 2022). Revenue is derived from approximately:
* 2% government/municipal
* 3% Institutional
* 35% Commercial to developers
* 60% Residential to developers
* 0% Home Owners
The company is focused on value engineering the entire worksite which provides a competitive advantage. Unlike many construction companies, this company chooses to rent its construction equipment which provides flexibility and transfers maintenance, relocation, storage, and insurance responsibility to rental firm. The expense fluctuates, but is approximately $130,000 per month. Leased wide-format copier/scanner/fax and A-E size color plotter/scanner will be transferred to buyer and are not included in FF&E. The company averages $1,500,000-$2,000,000 of open WIP, $2,500,000-$3,000,000 of awarded contracts not yet begun and $2,500,000-$3,000,000 in outstanding pending bid proposals. The approximate required working capital is $600,000. Bonding projects represent approximately 1% of gross revenue. EBITDA is estimated assuming two executive salaries of $150,000 each. Price in asking price is for database sorting purposes only. Sellers expectations are based on a multiple of earnings.


Historical Summary:

The owners have worked in the industry for approximately twenty years. The company has grown consistently since inception. First year revenue was $91,900 with year over year increases annually through 2022 approaching $26,000,000 with 17.8% average annual top line revenue growth.

Competition:

Competition is comprised of companies that perform similar services. No other construction company has grown as fast as this company in North Carolina - all while being 100% self-performing.


Growth and Expansion:

The current owners have intentionally managed growth to allow for more personal/family time. Owners 2021 estimate of $20,000,000 in revenue was based on minimal staffing increases and was over $22 million actual. The Sellers believe that experienced operators could increase gross sales by as much as 100% within 12 months by expanding into other North Carolina markets.

Location

Location: Central North Carolina

Facilities Type: Office Condo

Monthly Rent: $1,500

Building Square Feet: 1050
Facilities Description:

The business is operated from a location on a major thoroughfare in Wake County, NC. Adequate parking is available. The building is available for purchase. If purchased the property will be sold at bank's actual appraised value which may be higher or lower than the estimated $130,000.

Labor

Full-time Employees: 10
Part-time Employees: 1
Contractors: 80

Support and Training

Owner qualifications:

Buyer(s) will need to possess or retain employees on staff carrying a North Carolina General Contractors License and for engineering, a NC Board of Engineers and Land Surveyors Professional Engineering License (NCBELS) licensed engineer with prescribed equity as reflected in the NC Secretary of State filings.


Support and Training: Seller will negotiate terms of transition assistance and/or consulting agreement
Support and Training Comments:

Owners are open to long-term employee contracts at market rates up to 5 years.

Seller Financing

Seller Financing: Yes, Seller will provide significant financing over 20%
Seller Financing Comments:

Dependent upon overall transaction. Seller financing percent includes earn-out.

LISTING BROKER

Jeff Snell, CM&AP, M&AMI, LCBI, ABI

Jeff Snell, CM&AP, M&AMI, LCBI, ABI
REAL ESTATE TRANSACTION HANDLED BY

2009 Caminos Drive
Raleigh, NC 27607