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Pumping, Cement Maintenance & Repair w/ 60+ Employees

4 locations with 36 pumps, over 10MM in assets and 60 employees!

CASH FLOW
$3,291,448

Specifications

  • Price
    $17,250,000

  • Revenue
    $17,810,027

  • Profit Margin
    21%

  • Location
    California & Texas

  • Service Area
    South & Southwest USA

  • Reason for Sale
    Partnership dissolving (Brother retiring)

  • Equipment
    $10,500,000

  • Inventory
    $40,000

  • Account Receivable
    $1,700,000

  • Employees
    57: 10 office employees (managers, project leads and administrative staff) and 47 field employees

  • Lease
    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

  • Intangible Assets
    Established reputation for quality results and customer service, highly communicative process, well-organized procedures and operations, sunny weather for year-round projects

4 locations with 36 pumps, over 10MM in assets and 60 employees in Southern California! 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. With over 60 employees this is a turnkey operation that is successful in Southern California & surrounding states. The business is providing excellent concrete pumping services for a loyal client base, this company and its affiliates own all equipment and pumping trucks used for projects.  With responsible growth and efficient operations, this company has found an approach to success that is grounded in quality customer service, up-front pricing, and open lines of communication.  Included in the price is over $10MM in Assets plus $2M in accounts receivable– allowing the new owner to walk in and run the business as is! The business contains 36 Concrete Pumps which puts them at one of the largest in the Nation!

 

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. They recently got contracted for a border wall in Texas. 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.

Business Highlights

  • Year Established:   12+ years
  • Location: Southern Texas & Southern California
  • Service area: South and Southwest USA
  • Clients and Projects: K-12 Schools, Universities, Hospitals, Government Agencies, and a few residential homes --- These clients are rarely affected by the economy changes
  • 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 (Brother retiring)
  • Employees: 57: 10 office employees (managers, project leads and administrative staff) and 51 field employees
  • Seller Training Period: Will remain president for 2-3 years, if desired
  • Current Owner’s Responsibilities: Oversight and management. Retiring owner does not need replaced.

Financial Highlights

  • List Price: $17,250,000
  • Gross Sales:
    • TTM: $17,810,027
    • 2019: $15,852,520
  • Cash Flow:
    • 2019: $3,291,448
  • Assets Included in Purchase: $12MM
    • Equipment: $10.5+MM: Concrete pumps (36), 1 trailer, tools, safety equipment
    • Vehicles: 12: $200,000
    • Inventory: $40,000
    • A/R:  $1.7-$2.2MM 
    • Intangible Assets: Established reputation for quality results and customer service, highly communicative process, well-organized procedures and operations, sunny weather for year-round projects
    • 70% Collateralized

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Combined - March 2019-April 2020
P&L Statement
Combined
P&L Statement
Combined
Notes
202020192018
GROSS SALES$17,810,027$15,852,520$17,983,362
Net Income Shown on Financial Statement$2,498,074$2,087,769$3,207,414
ADDBACKS
Management fee$0$14,139$30,000To Owner
Other unrelated salaries $580,000$606,562$519,756To Non-Onward Going Owner
Interest $19,126$11,192$278,061
Meals & Entertainment$24,517$25,184$30,88950% Personal
Rent Adjustment$86,172$0$62,395Rent will be $300,000 onward going
Prepayments for Leases on Vehicles & Properties$0$546,602$0
Legal/Professional Fees$28,610$0$0
Life Insurance$9,524$0$0
TOTAL ADDBACKS$747,949$1,203,679$921,101
Seller's Cash Flow = Total Addbacks + Net Income$3,246,023$3,291,448$4,128,515
Profit Margin18.23 %20.76 %22.96 %

    • Due to space constraints, notes for this cash flow are available in the Qualified package.

    Typical Clients and Services

    Services:

    • Concrete pumping

     

    Typical Clients:

    • 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.

    Employees

    Combined: 57

    El Paso: 9

    • Manager (1)
    • Operators (8)
      • Can do basic maintenance on equipment
      • Sales

    Concrete Placement: 48

    • Office Administration (6)
    • Yard Service (9)
    • Operators/oilers/trainees (26)
    • Sales (7)

    Growth Opportunities

    • Continue to manage utilization and profitability 
    • Continue customer relationships and seek to build more 
    • Expand work done in secondary locations

    Valuation Details

    The Firm Business Brokerage 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 2019 cash flow was used with a prescribed multiple is 5.2.  With this information, the computation is as follows:

    $3,291,448      x          5.2       =          $17,115,530

    The fair market value found above positions the business list price at $17,250,000.

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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.