This highly respected Construction General Contractor & Management Firm has a dominant position in the PA region. While diversified, the firm’s concentration is on building large, medical, industrial and institutional facilities. The company maintains a consistent 24 month backlog of high revenue projects under contract and is an attractive purchase for any investor seeking a fully established, well managed, high cash flow construction organization.
The company enjoys a competitive advantage through historical, quality execution and thus maintaining long-term commercial relationships in its region. Cost control management, a strong executive team and efficient systems lead to maximizing the profitability of this firm - consistently winning job contracts and maintaining the highest profit margins possible. The company leverages its $100 Million bonding capacity to full advantage in the marketplace. It is projected that a new owner will obtain additional growth by expanding on the current job bookings in this vibrant and growing region. Management estimates such additional management fee costs to be approximately $500,000 per year, resulting in an increased revenue volume of $20 Million and profits of $3.5 Million. Currently, ownership turns down half of all project bid requests – demand and capacity are all in place for explosive growth if desired.
The company has been fully reviewed and conservatively appraised by an accredited, independent national valuation firm at 4x EBITDA (ttm) - a full valuation report is included in the prospectus. There is $6.5M in A/P to be assumed, but that is more than offset by $8M in A/R plus an additional $1.2M fixed assets included in the deal. By implementing the proposed deal structure an owner-operator will obtain more than $4.5M benefit in after-acquisition-debt cash flow in Year #1.
A comfortable six month transition period will be provided by the owner who truly wants to see the business continue to flourish.

Posted Sep 22, 2016

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