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Biological and Environmental Advisory Firm w/ Preferred Staffing

With $5MM in pipeline & a 46% profit margin!

CASH FLOW
$1,857,370

Specifications

  • Price
    $9,390,000

  • Revenue
    $4,056,637

  • Equipment
    $150,000

  • Location
    Southern California

  • Reason for Sale
    Industry Consolidation

  • Profit Margin
    46%

  • Employees
    23: (1) Controller, (1) Admin Assistant, (1) Office Assistant, (4) Directors, (4) Project Managers, (3) Project Coordinators, (7) Field Techs, (1) GIS, (1) Marketing

  • Intangible Assets
    Experienced team with a strategic approach offering high quality specialized services with a positive word of mouth referral reputation

  • Lease
    7,500 sq. ft. featuring 19 offices, 3 storage areas, kitchen, 7 covered parking stalls

With $5MM in pipeline & a 46% profit margin this full-service environmental advisory firm that specializes in the preparation of CEQA/NEPA documents, biological, regulatory and cultural services.  Known as intellectual leaders in the environmental community, they serve a myriad of public and private sector clients, working on jobs ranging from smaller development projects to $1.8 billion transportation improvements. 

Clients include builders/developers, cities, counties, water districts, school districts, the State of California, Caltrans, and metropolitan planning organizations throughout Southern California.80% of their clients are private firms and agencies, while the remaining 20% are federal government contracts. 

This highly focused team of 23 professionals with decades of experience leads clients through complex local, state and federal agency processes with excellence and maintains their business year over year. This firm is focused on providing superior service to existing clients, identifying new potential clients and participating in the Women Transportation Seminar, American Planning Association and Association of Environmental Professionals. 

The owner currently works on business development and project/ financial oversight. Growth opportunities include the expansion of cultural and CEQA services as they become leading divisions for the company. 

Business Highlights

  • Year Established: 1996
  • Location and Service Area: Southern California
  • Client Demographics: 80% Private firms and public agencies; 20% federal government contracts
  • Services: Environmental business in the areas of CEQA/NEPA, biological, regulatory and cultural services
  • Lease: 7,500 sq. ft. featuring 19 offices, 3 storage areas, kitchen, 7 covered parking stalls
  • Reason for Selling: Industry consolidation
  • Employees: 23: (1) Controller, (1) Admin Assistant, (1) Office Assistant, (4) Directors, (4) Project Managers, (3) Project Coordinators, (7) Field Techs, (1) GIS, (1) Marketing
  • Seller Training Period: 6 months - 1 year
  • Growth Opportunities: Division expansion of cultural and CEQA services
  • Current Owner’s Responsibilities: Business development and project/financial oversight

Cash Flow Analysis

Description of Financial StatementTax ReturnTax ReturnTax ReturnNotes
201820172016
GROSS SALES$4,056,637$3,766,987$2,905,542
Net Income Shown on Financial Statement$1,444,486$1,417,541$681,211
ADDBACKS
Compensation to Owner$194,016$231,702$226,418
11% Tax on total W2 Salaries$21,342$25,487$24,906
Depreciation$55,726$4,575$7,150
Interest$0$1,053$7,375
Non-Business Telephone$1,800$1,800$1,800$150 per month
Auto-Personal Use$150,000$0$0One time expense
Computer Program$50,000$0$0One time expense
Billable Hours$-60,000$-60,000$-60,000
TOTAL ADDBACKS$412,884$204,617$207,649
Seller's Cash Flow = Total Addbacks + Net Income$1,857,370$1,622,158$888,860
Profit Margin45.79 %43.06 %30.59 %
.

Typical Clients

  • Developers
  • Engineering firms
  • Cities
  • Counties
  • School districts
  • Metropolitan Planning Organizations

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Preparation of CEQA/NEPA documents
  • Biological mapping, endangered species surveys and reports
  • Regulatory permits and wetland/waters delineations
  • Cultural resources
  • Habitat mitigation, monitoring and reporting
  • Mitigation banking entitlement
  • Peer review and due diligence

Employees

23 Employees:

  • (1) Controller
  • (1) Admin Assistant
  • (1) Office Assistant
  • (4) Directors
  • (4) Project Managers
  • (3) Project Coordinators
  • (7) Field Techs
  • (1) GIS
  • (1) Marketing

Growth Opportunities

  • Expansion of cultural services
  • Expansion of the CEQA division

Valuation Details

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. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2018 cash flow was used with a prescribed multiple is 5.05.  With this information, the computation is as follows:

$1,857,370      x          5.05     =          $9,379,718

The fair market value found above positions the business list price at $9,390,000.

 

*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.