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Coastal Erosion Control, Earthwork, & Site Prep – 97 Employees

With over 20 active projects at one time!

CASH FLOW
$3,399,349

Specifications

  • Price
    $15,550,000

  • Revenue
    $23,542,002

  • Cash Flow
    $3,399,349

  • Location
    Port Lavaca, Texas

  • Service Area
    100-mile radius of Port Lavaca

  • Employees
    97 FT W2 employees; plus a go-to list of subcontractors hired as needed

  • Profit Margin
    16%

  • Intangible Assets
    Diversified services & client base, solid reputation in the area, long-standing relationships with GC’s & word-of-mouth referrals

  • Reason for Sale
    Retirement

This heavy civil construction business has 97 full-time W2 employees and over 20 active projects at one time! Their sale size that ranges from $10k to $5M, and they have averaged over 225 jobs per year for the last 3 years. With $11M in backlog, work is plentiful for this Texas company. They offer a vast array of heavy civil construction services, including  building streets, subdivisions, commercial site preparation, and industrial work at petrochemical plants, as well as utility system construction, earthwork, site preparation, coastal erosion control, shoreline protection, and general maintenance. Clients are comprised of private developers, industrial, city, county, and state governments, and GC’s. This versatile offering of services and diverse client base works in this company’s favor, as they don’t rely heavily on one client or sector. Approximately 65% of their work is as the GC, primarily for the county, city, or state. The other 35% involves working for the GC on a project as the sub. While they do have a go-to list of subcontractors when needed, the majority of the time, it’s their own team doing the work.

 

The team works out of a 6,000 sq. ft. office building located on 5 acres of land; their facilities also include 1 heavy equipment shop, 1 truck shop (2,000 sq. ft. each), and 1 fuel & oil shed (1,200 sq. ft.). The owner of the business owns the facility under a separate entity and leases it back to the business for $9,000/month. With a solid reputation in the area, the business has long-standing relationships with customers and GC’s alike; they are able to keep their service area within a 100-mile radius of the office. 

 

Utilizing top notch ComputerEase, HCSS, AGTEK, and Trimble software, this well-respected team receives invites to bid from GC’s they’ve worked with over the years; they also subscribe to websites that send notices of upcoming projects that are up for public bidding, with a 20-25% success rate. Priced at $15,550,000, there is ample opportunity for growth. Expanding the service area, actively pursuing more bids, or opening a satellite office in an area nearby where the population is booming would certainly lead to an increase in revenue.

Business Highlights

Year Established: 1959; incorporated in 1971; under current ownership since 1996

Location: Port Lavaca, TX

Service Area: 100-mile radius of Port Lavaca

Services: Coastal erosion control, shoreline protection, utility system contracting, earthwork, site preparation, maintenance, industrial site work

Clients: Heavy Civil City, County & State governments, industrial, private developers & GC’s

Lease: 5 acres of land, with 1 office building (6k sq. ft.), 1 heavy equipment shop (2k sq. ft.), 1 truck shop (2k sq. ft.), 1 fuel & oil shed (1,200 sq. ft.): $9,000/month

Reason for Selling: Retirement, Age

Personnel: 97 FT W2 employees; plus a go-to list of subcontractors hired as needed

Seller Training Period: 6-12 months

Growth Opportunities: Expand service area, pursue more bids, open a satellite office in an area of the state where population is booming

Current Owner’s Responsibilities: General oversight

Employees

Board of Directors:

 

  • Owner/CEO
  • General Manager
  • CFO
  • Office Manager

 

Team of Employees:

 

  • 4 Admin
  • Chief Estimator
  • 2 Estimators/Project Managers
  • 1 Asset Manager
  • 1 Trucking Manager
  • 3 Mechanics
  • 1 Field Engineer
  • 1 Safety/Quality Control Manager
  • 2 Site Safety Technicians
  • 5 Superintendents
  • 9 Foremen
  • Survey Crew
  • Crews & Subcontractors as needed

Financial Highlights

  • List Price: $15,550,000

  • 2020 Cash Flow: $3,156,507

Assets

  • Assets: $6,500,000
  • Equipment/Vehicles: $4.8M: Heavy & Misc.
  • Vehicles: $1.7M: Light & Heavy
  • Backlog: $11M

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementP&L StatementNotes
202020192018
GROSS SALES$23,542,002$31,372,536$23,884,441
Net Income Shown on Financial Statement$1,578,881$1,813,491$572,032
ADDBACKS
Compensation to Owner$1,489,654$1,268,930$748,124Owner & Spouse salary + bonuses
11% Tax on total W2 Salaries$163,862$139,582$82,294
Depreciation$1,129,541$1,106,565$1,042,767
Interest$20,094$28,353$23,700
Contributions/Donations$57,578$36,897$24,176
Meals$8,890$9,308$6,925
Owner Life Insurance$771$772$772
Marketing$5,000$0$0
401k$74,483$63,447$37,406
Auto-Personal Use$18,000$18,000$18,000
Insurance$17,708$0$0
Miscellaneous Income$-1,407,955$0$0
TOTAL ADDBACKS$1,577,626$2,671,854$1,984,164
Seller's Cash Flow = Total Addbacks + Net Income$3,156,507$4,485,345$2,556,196
Profit Margin13.41 %14.30 %10.70 %
Profit Margin: 16%

Valuation

Funding Example

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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.