Business Overview
About the Company
PLEASE EMAIL (ONLY) paul@companybroker.com
Dirt Hauling, Excavating/Grading, Sweeping, Erosion Control, Aggregates, Trash Removal
The Sales Price of the company is $7,000,000 down at closing, and another $3,000,000 (total sales price $10,000,000) paid over 4 years for a qualified buyer with a promissory note. This business will qualify for an SBA loan, but the buyer must have at least $2,500,000 liquid.
2022 Cash Flow was 3,417,787 on sales of 16,032,572
2021 Cash Flow was 1,316,632 on sales of 9,298,378
2020 Cash Flow was 2,419,263 on sales of 10,874,734
2019 Cash Flow was 1,157,332 on sales of 7,126,572
The sale includes about $3,000,000 in accounts receivables and $8,000,000 in heavy equipment and vehicles. That is what the equipment is worth today, but the seller paid well-over $10,000,000 originally. This totals about $11,000,000 in assets and working capital that the buyer will take over at closing DEBT FREE. Further, the seller will “guarantee” the collection of the accounts receivables for the buyer. Please see the comprehensive list of all vehicles, equipment and values for each piece in the data room. In short, the net worth or book value of the company is close to 11,000,000 after debts are paid off. Not bad for a business that will cash flow over 4M this year.
The seller will stay on for 1-2 years or however long it takes to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.
Critical Points to Understand:
The buyer will step into the biggest pipeline of work contracted in our history. We will have 7M-8M in contracts/work in progress (WIP) on the books at the time of closing of high-margin work all set up for the new owner for the next 5-6 months. This is more than 3 X’s the amount of work we had this time last year going into 2023. The seller is 100% confident that 2023 will cash flow over $4M on over $17M in sales because of the work we have lined up already.
The buyer needs NO WORKING CAPITAL since the sale includes about $3M in solid accounts receivable to operate the company going forward.
No New Equipment needed for 4 years: The sale includes 72 pieces of the latest-model heavy equipment worth more than $8M (QSV) and is incredibly well-maintained. Over the last 5 years the seller has reinvested virtually all profits back into the business to build it up to what he has today, which is enough equipment to do $25M in sales for the next 4 years without buying anything new. Instead of generating large profits to last for 5 years and paying big taxes, he took advantage of the tax benefits of plowing profits back into the business to grow the equipment so that the new owner can also just cash flow over $4M/yr. solid on sales of $16M for the next several years because we have everything needed to generate solid profits going forward.
It Would Be a “Lay-up” to Double the Sales and Profits Immediately: The biggest asset being sold here is not the $8M in equipment or the excessive working capital, or even the great name and reputation of the business. It is the immediate upside growth the new owner can pursue immediately because these homebuilders want us to do 2-3 X’s the current volume we currently do for them. This is the biggest asset, the very fact that we have an additional $20M-$30M on a silver platter that we currently pass on. This is all great margin work that the seller simply passes on to keep the business from growing much further. The new owner has an immediate ability to double the sales by simply taking on more of this work immediately.
