Mobile Platform & Scaffold Sales, Rental, Installation, and Dismantling
Sellers are willing to roll 15% equity and carry an additional 10% of the note!
The sellers are willing to roll 15% equity and carry an additional 10% of the note on this mobile platform & scaffold sales, rental, installation, and dismantling company! They currently have 500 clients in their customer base, with 25 continuously recurring clients that include general contractors, concrete & masonry, demolition, and repair and installation contractors. At a price of $19,500,000, you are looking at a 191% return on investment in the first year!
They install, dismantle, rent, and sell frame scaffolding, system scaffolding, shoring scaffolding, and hydro mobile platforms with nearly 60% of their revenue coming from rentals. This business has over $3.75M in work-in-progress and backlog, which is an average of 70% utilized with about $9.9M in inventory out for rentals on a monthly basis. Boasting $4.5M in hydro mobile inventory (96), they are far ahead of their competitors who only have 1-3 units. They also offer 3D drawings on more complex projects which differentiates them in the market. In addition, the recently passed US infrastructure bill caters to this company’s core customer base and will certainly increase their revenue in the coming years.
This company does little to no marketing or advertising due to their recurring clients. A new owner could absolutely grow by simply adding a marketing and sales plan. This business has a sister company (23% of revenue) that is Union based. In any given month, they have around 150 work orders and their large projects that go for longer than one year are greater than $1M in value. Assets include almost $11M in scaffolding inventory and $1.45M in vehicles like flatbed trucks (5) and pickups (20).
Their current work-in-progress is valued at $1.7M, with $2.05M in backlog. The current workload consists of 40% construction, 30% restoration, and 20% industrial. At any given time, they have anywhere from 45 – 60 employees with 7 of them in the office, 12 in the yard/shop, and 25-40 laborers. Two of the owners focus primarily on sales; the third owner manages day to day business. They are currently transitioning responsibilities to other employees. Priced at $19,500,000, this is a business that is positioned to grow in the scaffolding space through acquisition of more inventory and expansion into different cities.
Year Established: 2007
Location: Minneapolis Metro area
Service Area: Twin cities metro and upper Midwest
Services: Install, dismantle, rent, sell frame scaffolding, system scaffolding, Shoring Scaffolding and Hydro mobile platforms
Clients: 500 clients customer base with 20 recurring clients
Buildings:50,000 square feet space – 3,000 square feet is office building; 47,000 square feet is warehouse and 1.2 acres yard for outside storage.
Reason for Selling: Retirement
Personnel: 45 to 60; 21 employees who work in office and yard and ~ 25 - 40 laborers/contractors throughout the year.
Seller Training Period: 1 – 4 years
Growth Opportunities: Expansion into other citiesCurrent Owners’ Responsibilities: Active; Replacement or Retainment salaries accounted for in Cash Flow
- List Price: $19,500,000
- 2018-2020 Average Cash Flow: $5,858,892
*amounts may vary
- Assets: $15,000,000+
· Machinery & Equipment: $634,741 - Ladders
· Vehicles: $1,578,432 - Flatbed trucks (5), 27-foot straight trucks, one-ton truck (1), pickups (20)
· Inventory: ~$11,000,000
· Furnitures & Fixtures: $41,090
· Land: $371,328
· Capital Expenditure: ~$1,000,000
Buildings are not included in the current sale price. Advantage Scaffold
currently has an offer to purchase a new property for $3.2 million and are
negotiating to increase this. The new property, should they procure it, is
valued at $6M.
|Description of Financial Statement||Notes|
|Net Income Shown on Financial Statement|
|Compensation to Owner|
|11% Tax on total W2 Salaries|
|Seller's Cash Flow = Total Addbacks + Net Income|
- Gross sales in 2020 is $13,883,263, down 9% from 2019 due to COVID-19. In spite of that they still have a current backlog of $3.5M of projects.
This company has anywhere from 45 to 60 employees depending on the season.
They have 21 employees who work in office and yard and ~ 25 0 40 laborers/contractors during the year.
- Owners (3)
- 21 employees; 12 in office 9 in yard/ shop
- Sales representatives (4)
- Draftsman (draws scaffolding)
- Office Manager
- 11 in shop
- Drivers, mechanics, (11)
- Laborers and contractors
- 25 in the Winter
- 40 in the Summer
This company has a customer base of ~500 customers.
They provide services to office buildings, schools, churches, power plants, municipal buildings and theaters.
- Existing customers call them for rentals
- They have contracts only on installations and dismantles
- The concrete and masonry firms just call them for projects
This business installs, dismantles, rents and sells frame scaffolding, system scaffolding, shoring scaffolding and hydro mobile platforms.
|Service||% of Projects||% of Revenue|
|Rentals of the different scaffolding and Hydro Mobile platforms||77%||59%|
|Erection, dismantle, sales||23%||41%|
This company can can grow by expanding their work out of the twin cities metro area as well as increasing their inventory and employees.
The areas below are opportunities for growth;
- Swing stage rental
- Sales and installation
- Construction equipment rentals
- Sales e.g. Grout hog, mixers, The Mule robotic block laying tool etc.
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