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Civil Firm Focused on Roads & Excavation with $33M in Backlog

The owner is in his 80’s and could sell his equipment & collect A/R for much more than our price – his staff and legacy are worth more!

CASH FLOW
$7,484,031

Specifications

  • Price
    $22,500,000

  • Revenue
    $32,250,270

  • Cash Flow
    $7,484,031

  • Equipment
    $13,000,000

  • Location
    Evansville, Indiana

  • Account Receivable
    $6,300,000

  • Employees
    120+, including 3 SVP’s, 8 superintendents, 1 office manager, 1 administrator/billing, and around 110 laborers

  • Reason for Sale
    Retirement, Owner Age

  • Service Area
    Primarily Virginia, along with Kentucky and West Virginia

With over $13M worth of assets included in the purchase of the business, the current owner could actually collect more income by selling his equipment than he will be with the purchase of this business. He is choosing to sell his business because continuing to employ his staff and allowing someone to build on the business’s current legacy is more valuable to him than the A/R that his equipment could gather. Thanks to these assets, the purchase of this business is over 55% collateralized. This business is at the top of their field. They are specialists in excavation and utility installation for road projects and large site retail and industrial jobs in their service area of primarily Virginia along with Kentucky and West Virginia. They boast 50% repeat customers. Their client base is made up of 36% municipalities, 22% government, 23% schools, and 19% commercial property owners. Their staff is able to handle a wide variety of clients both in geographic location and in contract types thanks to their size and skill. The team has over 120 members including 3 SVP’s, 8 superintendents, 1 office manager, 1 administrator/billing, and +/- 110 laborers dependent on projects and locations. It is pertinent to note that all staff have signed an agreement to stay on through completion of their current projects, so long as they remain at the same salary and bonus structure.

 

The current owner performs general oversight as a preference, as he is in his mid-80’s. His passion for the job is clearly contagious, as he has multiple personnel that have been employed for 10+ years, but he’s decided it’s time to retire. Established over 50 years ago, the longevity of this business has resulted in an excellent reputation for high-quality work, completed on time, every time. This long-standing esteem coupled with $33M of work in progress and new bids in the pipeline is manifesting in a projected revenue of $28M for 2022.

 

Priced to sell at $22,500,000, this excavation company has it all with repeat clientele, profitable contracts, and excellent name recognition. Not to mention the far over-collateralization of purchase with the $13M in included assets. The services this business offers are deemed essential and the industry as a whole is pandemic proof. In addition to this stability, new ownership is also poised to benefit from the increase in business and revenue brought on by the 2021 infrastructure bill which is providing natural growth in the construction industry. As an added layer of faith in the business, not only is the current owner prepared to collect less income from the sale of the business rather than the sale of equipment to keep the business running and the employees working, he is also offering to finance or equity roll 15% of the purchase! We believe that this shows extremely good faith in the future success of the business and mitigates risk to the next owner. There has never been a better time to get into the construction business and, given all of the positive points listed above, this excavation company is ready to capitalize on these incredible opportunities!

Purchase Price:

$22,500,000

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Bank Loan Needed: $

Years
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
TTM Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
TTM Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.