Design & Construction Support for Civil Infrastructure Projects
Well-known in the region with strong recurring client base!
This Washington engineering firm is well-known in the region with a strong recurring client base! Established almost 15 years ago in the Seattle area, this firm is licensed in Washington, Oregon, and Alaska, as well as having DBE, SBE, and MBE certification. Services include civil engineering, surveying, planning, design, permitting, and construction management in the public and private sector. Along with providing all civil aspects of design and construction, the company also conducts value engineering studies, involving a team of multiple disciplines that dissect a project and provide input on how to improve the function and cost; this service has proven to be indispensable in the industry.
The highly skilled team of 11 is based out of a 1,600 sq. ft. office building and includes the owner, who is a Project Engineer, 1 PT Professional Land Surveyor, 1 Engineer-in-Training, 4 Surveyors, 2 CAD Technicians, 1 PT Structural Engineer, and 1 Office Manager. Assets are comprised of survey equipment, digital levels, total stations, scanners, high-end computers, and a multitude of top-notch engineering software including MicroStation, InRoads, Civil 3D, and Leica Geosystems.
This firm has a long-standing reputation in the area with substantial connections with several important projects. Continuing to build these relationships and engage in large projects will certainly lead to an increased client base and growth in revenue.
- Year Established: 2006
- Location: Seattle, Washington
- Service Area: Primarily throughout Washington & Alaska
- Services: Civil engineering, surveying, planning, design, permitting, and construction management
- Clients: Residential, commercial, educational, institutional, large engineering & design firms
- Certifications: DBE / SBE / MBE certified
- Lease: 1,600 sq. ft. office building
- Reason for Selling: Exploring options
- Personnel: 11: 1 Owner (Project Engineer), 1 PT Professional Land Surveyor. 1 Engineer-in-Training, 4 Surveyors, 2 CAD Technicians, 1 PT Structural Engineer, 1 Office Manager
- Seller Training Period: 1-2 years, if desired
- Growth Opportunities: Continue to connect and engage in important projects in the area
- Current Owner’s Responsibilities: Overall firm management, public relations, design elements, marketing
- List Price: $1,540,000
- Gross Sales:
- 2020: $1,602,106 Annualized
- 2019: $1,330,905
- 2018: $1,352,918
- Cash Flow:
- 2020: $478,488 Annualized
- 2019: $452,632
- 2018: $394,683
- 2017: $606,202
- 2016: $216,024
- 2015: $381,699
- Assets Included in Purchase*
- Equipment: Survey equipment, digital levels, total stations, scanners, high-end computers, multitude of software
- Vehicles: 2 vehicles - 2020 Toyota Truck, 2013 Toyota
- Intangible Assets: Strong recurring client base, well-known in the industry, long-standing reputation
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Tax Return||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$225,125||$285,007||$267,471||$519,342||$216,850||$364,010|
|Compensation to Owner||$0||$225,009||$171,902||$102,431||$75,000||$86,639|
|11% Tax on total W2 Salaries||$0||$24,751||$18,909||$11,267||$8,250||$9,530|
|Meals & Entertainment||$2,139||$2,243||$2,439||$0||$0||$2,720|
|Owner's Disability Insurance||$1,500||$3,000||$3,000||$3,000||$3,000||$3,000||$3,000/year|
|Seller's Cash Flow = Total Addbacks + Net Income||$239,244||$452,632||$394,683||$606,202||$216,024||$381,699|
|Profit Margin||29.87 %||34.01 %||29.17 %||33.64 %||16.42 %||28.38 %|
- Profit Margin 2019: 34%
- Transportation & Roadway
- Large Engineering & Design Firms
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Civil Engineering
- Construction Management
- 1 Owner
- Project Engineer – overall firm management, public relations, design elements, marketing
- 1 PT Professional Land Surveyor
- 1 Engineer-in Training
- 4 Surveyors
- 2 CAD Technicians
- 1 PT Structural Engineer
- 1 Office Manager
- Continue to build connections/relationships in the area
The Firm 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 prescribed multiple is determined by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiplier.
For this business, a 6-year average cash flow was used with a prescribed multiple of 3.65. With this information, the computation is as follows:
$421,621 x 3.65 = $1,538,918
The fair market value found above positions the business list price at $1,540,000.
Purchase Price: $1,540,000
12.5%Buyer Down Payment: $192,500
12.5%Seller Financing: $192,500
75%Bank Loan: $1,155,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $3,589.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $15,178.
After business expenses and loan payments, a buyer with a 12.5% down payment of $192,500 would retain a profit of $196,415, which results in a 102% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $1,540,000 with the terms listed above, the coverage ratio is 1.87.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*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.
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: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
6-year average cash flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
6-year average cash flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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Omaha, NE 68114
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