Business Overview
About the Company
26-Year-Old Road Paving/Asphalt, Comm. Residential Near Denver. Cash Flows 2.2M
Seller will carry 2M on 7M sales price
26-Year-Old Road Paving/Asphalt, Comm. Residential Near Denver. Cash Flows 2.2M on 10M Solid, 3M in Assets Debt Free.
Cash Flow –
2023 Cash Flow will be over 2,200,000 on sales of about $8M
2022 Cash Flow was 2,193,057 on sales of 7,310,134
2021 Cash Flow was 2,289,443 on sales of 7,397,060
2020 Cash Flow was 1,655,380 on sales of 6,787,606 (COVID)
The sale includes $3M in assets completely DEBT FREE: including $2,800,000 in 65 pieces of paving equipment and vehicles etc. (see comprehensive equip. list). This is what the equipment is worth today, but the seller paid well-over $5,500,000 originally.
Summary of the Situation: the seller seeks to sell 100% of the business, but the same time he is absolutely committed to stay on for the next 3-5 years in a close working relationship with a new owner to “absolutely double the sales and cash flow in no more than 4 years”, he says. He has gone on record to say that he turns down more work than he pursues because of the name and reputation of the company. He has an incredible amount of work sitting right in his door that he passes on every day, simply because there’s not enough hours in the day to get it all done and he has specifically “held the business back” under $8M/yr. he simply doesn’t want any more growth. However, a new owner that wants to take the business right to $15M/yr., he would love to see stay on and make this happen. Currently we are drinking out of a fire hydrant of work and he is adamant that he can bring in another $5M/yr. of additional high-margin work because it is just sitting at our door for the new owner to take on.
90% of our work is recurring form repeat customers: In terms of quality of work, we have the finest reputation and working relationship with 100’s of long-standing steady customers who use us year after year and job after job. In fact, 90% of our jobs are from repeat customers, so its almost ALL RECURRING REVENUE.
No sales and marketing efforts at all, yet we grow every year: We have no sales reps or ANYONE in business development. We receive more bid solicitations in a given week than we can even pursue, we turn down work every day. Because of our name and reputation for solid work we can barely handle the work from our long-standing existing customers. For most of the year, we are drinking out of a fire hydrant of work coming at us and inbound calls that we can barely field, let alone bid for.
There Are No Negative Disclosable Items: We will provide full Representations and Warranties of the Company's Overall Standing. The company is in excellent standing. NO customer or industry concentration: Finally, we have no customer concentration concerns, meaning not 1 of our 100’s of customers is more than 10% of our gross sales year over year.
We have 65 pieces of the Best Equipment in our Market: In our industry it is clear that “you are as good as your equipment, and of course, your employees”, and we now have the best of BOTH. It was not always this way, but over the past 2-3 years, the seller has invested about $1M in the newest equipment. The new owner needs very little new equipment to grow to $10M-$12M/year for the next several years.
Our Great Employees: We have 38 solid employees and most of them have been with us for 10+ years. They are loyal and well-paid; we have the lowest turn-over in the industry. In the field our employees understand exactly how to run a job and operate equipment with almost no oversite or management from the owner after all these years, they are self-sufficient.
Roads and Pavement Surfaces have about ½ the Life Expectancy in Colorado than other States: It’s critical to understand that Colorado has a never-ending demand for pavement and need replacement more frequently than other cities. Simply put, asphalt and concrete have the shortest life span in the Front Range of Colorado than any other city in the country.
