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Concrete Pumping & Maintenance with 90% Recurring Client Base

Over $10M in hard assets!

CASH FLOW
$2,367,719

Specifications

  • Price
    $17,500,000

  • Revenue
    $16,025,233

  • Location
    El Paso Texas & Southern California

  • Cash Flow
    $2,367,719

  • Service Area
    South & Southwest USA

  • Equipment
    $10,500,000

With a 90% recurring client base, this growing concrete business has 4 locations, 36 concrete pumps, over $10M in hard assets, and 57 employees in Southern California and Texas. The bulk of its contracts are municipal projects, such as K-12 Schools, Universities, Hospitals, and Government Agencies. With its specialized equipment and experienced teams, this business is able to take on projects that would be too large or too difficult for other contractors. The company’s customers are loyal, and since larger public projects and public works are rarely affected by economic changes, the business has been able to weather economic changes and continue to grow while other contractors have failed.

 

The business boasts over $10M in hard assets and equipment, including 36 concrete pumps, making them one of the largest concrete companies in the nation. Moreover, the current owners have been efficient in their operations and have focused on sustainable and responsible growth. The owners approach this in two important ways: (1) They purchase all new equipment without incurring any long-term debt, and (2) The owners import their replacement parts from producers and wholesalers worldwide, which allows them to save 30-45% off what their competitors have to pay. Using these approaches, the company has over $2M in accounts receivable and ongoing work, and typically over 90% of AR is paid within 90 days. All this while remaining DEBT FREE!

 

Well-trained managers and project leads are in place and the supporting administrative staff is knowledgeable and capable to handle day-to-day operations. A lot of new equipment was purchased in 2016 & 2017; generally, CapEx is less than $150,000/year.

 

The owner is involved in daily operations as a manager and in an oversight capacity, and he is willing to stay on as president for 3-4 years. This is an excellent opportunity for any buyer, regardless of construction experience, as Seller will give you all the tools to succeed. Truly a turnkey business opportunity.

Equipment Examples

28Z-METER
Vertical Reach: 89' 7"
Horizontal Reach: 78' 1"
Unfolding Height: 21' 4"
Front Outrigger Span: 20' 5"
Rear Outrigger Span: 8' 7
 
33-METER
Vertical Reach: 32.6m
Horizontal Reach: 28.6m
Depth Reach: 21m
Delivery Pipe Diameter: 125mm
Slewing range: 370°
Front Outrigger Span: X extension
Rear Outrigger Swing-Type
 
36Z-METER
Vertical Reach: 116' 9"
Horizontal Reach: 104' 0"
Unfolding Height: 28' 7"
Front Outrigger Span: 20' 7"
Rear Outrigger Span: 21' 8"
 
38Z-METER
Vertical Reach: 121' 9"
Horizontal Reach: 108' 7"
Unfolding Height: 28' 7"
Front Outrigger Span: 20' 7"
Rear Outrigger Span: 21' 8"
 
47 METER RZ 5 SECTION
With O.S.S.
Boom: 5 Section R-Z
Vertical Reach: 151' 2"
Horizontal Reach: 138' 1
Unfolding Height: 31' 2"
Front Outrigger: 29' 2"
Rear Outrigger: 31' 2"
 
56 METER RZ 5 SECTION
Boom: 5 Section RZ
Vertical Reach: 182'
Horizontal Reach: 168'
Unfolding Height: 40'
Front Outrigger Span: 30' 6"
Rear Outrigger Span: 39' 8"
 
65 METER RZ 5 SECTION
With O.S.S.
Boom: 5 Section R-Z
Vertical Reach: 204'
Horizontal Reach: 191'
Unfolding Height: 42' 7"
Front Outrigger Span: 36' 2"
Rear Outrigger Span: 47' 7"
 
TELEBELT® TB 105
Vertical Reach: 90' at 30°
Horizontal Reach: 105' 0"
Unfolding Height: 16' 0"
Front Outrigger Span: 24' 2"
Rear Outrigger Span: 25' 2"
 

Photos

  

  

Business Highlights

  • Year Established:   12 years
  • Location: El Paso Texas & Southern California
  • Service Area: South & 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 or pandemic changes – 90% of clients are recurring.
  • 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 47 field employees
  • Seller Training Period: Will remain president for 2-3 years if desired
  • Current Owner Responsibilities: Oversight and management. Retiring owner does not need replaced.

Financial Highlights

  • List Price: $17,500,000


    Cash Flow Analysis

    Description of Financial StatementP&L Statement
    Combined - Jan-July 2020
    P&L Statement
    Combined
    P&L Statement
    Combined
    Notes
    202020192018
    GROSS SALES$9,698,642$15,852,520$17,983,362
    Annualized$16,626,243
    Net Income Shown on Financial Statement$2,054,227$2,087,769$3,207,414
    ADDBACKS
    Management fee$0$14,139$30,000To Owner
    Other unrelated salaries $8,290$606,562$519,756To Non-Onward Going Owner
    Interest $10,000$11,192$278,061
    Meals & Entertainment$2,308$25,184$30,88950% Personal
    Rent Adjustment$20,992$0$62,395Rent will be $300,000 onward going
    Prepayments for Leases on Vehicles & Properties$9,600$546,602$0
    Legal/Professional Fees$30,000$0$0
    Life Insurance$4,947$0$0
    11% Tax on total W2 Salaries$912$0$0
    Travel$20,000$0$0
    Sponsorship$1,850$0$0
    Cell Phone$4,800$0$0
    TOTAL ADDBACKS$113,699$1,203,679$921,101
    Seller's Cash Flow = Total Addbacks + Net Income$2,167,926$3,291,448$4,128,515
    Annualized
    Profit Margin22.35 %20.76 %22.96 %

     

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

      Typical Clients

      • K-12 Schools
      • Universities
      • Hospitals
      • Government Agencies

       

      90% of clients are recurring

       

      Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

      Employees

      • Office 8 full time; 1 part time (in California office); they invoice Texas 1/3 of the office expenses every month to account for an office clerical dept in Texas since we utilize office staff for both companies

         

      • Yard-Service: 7 full time employees in California and 2 PT employees

         

      • Operators/Oilers/Trainee: 24 full time and 2 PT

         

      • Sales: 4 and 1 PT

         

      • Texas: 7 operators (who also work in yard and 3 of which can do mechanical repairs); 1 manager/sales

         

      • California: 43 total FT employees; 6 PT employees / 8 employees in Texas

      Backlog and Projected Jobs

      • Amazon Warehouse in Texas
      • $70M in Backlog

      The company has a significant amount of work in the pipeline for Q4 2020 and 2021 already in California, and their customers in El Paso have already signed over $5 billion in contracts that we they be working on, 2 billion in school improvements and new facilities, and just over 3 billion in freeway projects all over the next three to five years. A buyer should keep in mind that is with just 5 of their customers, and all of their customers in Texas are getting busier in and around El Paso as the area is really growing and thriving. 

      Income Analysis

      • Not just a concrete pumping company; they have numerous avenues of which to generate revenue from parts, equipment sales, and even service.  They are a full-service company that is always looking for new ways to increase revenue or try to cut cost.
      • Pricing varies by customer, location, and project
      • Estimates are very easy as it is all based on square footage
      • Quotes are given to all customers by project
      • 90% of customers are returning
      • Average sale size: $2,100
      • Sale size varies month-to-month and by project
      • Annaul fee increases are implemented in July
        • Increase is typically 10-12%
      • A/R turnaround:
        • 50% in less than 45 days
        • 40% paid within 60-70 days
        • In general, 40% pay within 30 days, the next 30% pay in 31-60 days, the next 23% pay in 61-90 days and 7% in 91-120 days

      El Paso

      • Of monthly expenses 1/3 is charged to Concrete Pumping by Concrete Placement

      Assets of Business

      • Assets: $12,000,000

       

      • Equipment: : $10.5+MM: Concrete pumps (36), 1 trailer (2016 Wells Cargo), tools, safety equipment
      • Vehicles: 12 company vehicles: $200k+, including (2) 2019 Chevy Colorados, 1 2017 Ford Flatbed, 2 Mitsubishi Outlanders, and 2 Dodge Dakotas
      • Inventory: $40,000
      • Intangible: 90% Recurring Client Base

       

      * 70% Collateralized *

       

      *See additional asset information in the attachments

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