Business Overview:
Founded in 1991, this highly-regarded company provides construction materials inspection and testing services (concrete, steel, masonry, soil) and ancillary engineering services in the greater Washington, DC metro area and southern PA. It supports contractors that build airports, highways, sewer and stormwater managment projects and other public and private construction projects. It is positioned do well in the recession, as 70% of its end users are public projects. And, since most its work relates to infrastructure building and maintenance, it should do even better when the federal economic stimulus program is funded. Examples of its work include testing concrete to determine that compression strength (measured in pounds of pressure applied until a breaking point is reached) is what was specified by the architect or that the bolts holding together a steel structure are tightened correctly and the welds have no cracks. The firm is involved in many of the larger public and private construction projects in the greater Washington, DC metro area. Approx. 60% of work is derived from existing customers and contracts and is not competitively bid. 30% comes from referrals and bids with the remaining 10% from marketing efforts. Although many of its workers are certifed by various organizations and although the company employs several professional engineers, the owner is not and does not need to be an engineer or have any certifications. Managment (current vice-president) is in place and willing to stay on with the new owner. The owner wants to retire, but will stay on for transitional or longer-term employment. All equipment used in the business as well as $1,000,000 in net current assets (current assets minus current liabilities) are included in the $3.5M price .
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Property Features and Assets:
The company leases approximately 4,000 square feet of office space in a 7,904 square feet building owned by the company president and owner. The space houses the company's headquarters and a testing lab. The remaining 3,904 is occupied by another company. The new owner can either purchase the entire building for $575,000 (in addition to the business purchase price) or rent the existing business leasehold at the rate of $3,400 per month. The company also occupies two other office/lab facilities, one located at Dulles International Airport and the other in Washington County, MD.
Market Competition and Expansion:
Although some competition exists in each of the services this company provides, no other company in its market provides the full range of services that this company provides. Management believes that the company can be grown quite aggressively by geographic expansion to nearby areas, by marketing its field and professional engineering services (now only offered as an adjunct to testing services) and by expanding its environmental testing services offerings. And, as most of this company's work relates to infrastructure building and maintenance, it is positioned to grow significantly when the federal economic stimulus package is funded.
Reason for Selling:
Retirement
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.