Pumping, Cement Maintenance & Repair w/ 60+ Employees
This company completes projects for diverse clientele with varying needs. This company provides services to: K-12 Schools, Universities, Hospitals, Government Agencies, and a few residential homes --- These clients are rarely affected by the economy changes. Anywhere concrete is either challenging to pour due to location or projects that cover large expanses, this company has the expertise to meet the challenge. With experience in medical facilities, retail establishments, and government contract work, this business can meet the needs of nearly any customer. They are able to effectively manage their equipment and staff to maximize profits wherever possible without sacrificing quality service and results.
Well-trained managers and project leads are in place and the supporting administrative staff is knowledgeable and capable to handle day-to-day operations. For each job, this business supplies the pumps and the operator. This business does not do concrete finishing or the purchasing of concrete for a project. The owner is involved in daily operations as a manager and in an oversight capacity. The owner will remain president for the next couple of years if desired.
- Year Established: 10+ years
- Location: Texas & California
- Service Area: South & Southwest USA
- Clients and Projects: K-12 Schools, Universities, Hospitals, Government Agencies and a few residential homes.
- Services: Concrete pumping, maintenance & repair
- Building and Land: Location 1: 5k sq. ft. building with 46k sq. ft. yard; Location 2: 1 ac. yard only; Location 3: 1 acre yard only; Location 4: 26k sq. ft. yard with small building and containers
- Reason for Selling: Partnership Dissolving
- Employees: 61
- Seller Training Period: Will remain President for 2-3 years, if desired
- Current Owner’s Responsibilities: Oversight and daily management
- List Price: $19,500,000
- Gross Sales:
- 2018: $14,626,264
- Cash Flow:
- 2018: $4,183,293
- Assets Included in Purchase: $12MM
- Equipment: $10.5MM: Concrete pumps (36), tools, safety equipment
- Vehicles: 12: $200,000
- Inventory: $40,000
- A/R: $1.7MM as of 7.31
- Intangible Assets: Established reputation for quality results and customer service, highly communicative process, well-organized procedures and operations, sunny weather for year-round projects
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$3,207,414|
|Other unrelated salaries||$519,756|
|Seller's Cash Flow = Total Addbacks + Net Income||$4,183,293|
|Profit Margin||28.60 %|
- Increasing profit margin year-over-year!
- Profit margin 2018: 33%
- Profit margin 2017: 33%
- Profit margin in 2016: 27%
- Profit margin 2016: 20%
- Due to space constraints, notes for this cash flow are available in the Qualified package.
Typical Clients and Services
- Concrete pumping
- Residential homebuilders
- Commercial builders
- Medical facility builders
- Government contracted builders
- Industrial and manufacturing builders
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
El Paso: 9
- Manager (1)
- Operators (8)
- Can do basic maintenance on equipment
Concrete Placement: 48
- Office Administration (6)
- Yard Service (9)
- Operators/oilers/trainees (26)
- Sales (7)
- Continue to manage utilization and profitability
- Continue customer relationships and seek to build more
- Expand work done in secondary locations
The Firm used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health.
For this business, a 2018 cash flow was used with a prescribed multiple is 4.64. With this information, the computation is as follows:
$4,183,292 x 4.64 = $19,410,474
The fair market value found above positions the business list price at $19,500,000.
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