Construction Materials Testing Company, 40+ year

Dallas, TX
Dallas County

Asking Price: Annual Revenue:
$650,000 $619,339

Services: Engineering, Architectural Services

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RE: Construction Materials Testing Company, 40+ year Broker: Jeff Adam
Owner Financing is Available!
Price $650,000 with up to $65,000 seller financing.

Quick Facts

Asking Price: $650,000
Annual Revenue: $619,339
Net Profit: Not Disclosed
Cash Flow: $236,933
Total Debt: Not Disclosed
FF&E: $100,000
Real Estate: Not Disclosed
Year Established: 1990
Employees: 3
BBN Listing #: 276018963
Broker Reference #: 19825

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Business Overview:

The business is a 40+ year old, well established construction materials testing (CMT) service business set up to test and inspect materials on and from construction sites, including laboratory testing. Clients consist primarily of school districts and cities (estimated at 80-90% of annual sales) with architects, engineers, home owners and contractors providing the balance. The following is a listing of typical project services, typically to ASTM (American Society for Testing and Materials) specs: 1) Foundation construction observations / inspections, 2) Post-tensioning and reinforcing steel inspection, 3) Soil compaction, moisture content, density testing and inspection (eg Atterberg Limit Series, Standard Proctor), 4) Field inspection and quality control of drilled piers, formwork, reinforcing steel and inserts, 5) Concrete strength testing, concrete design mixes, and in-place strength investigations (including sieve analysis, specific gravity, Slump testing), 6) Concrete Test cylinders, 7) Inspection of concrete placement and concrete curing, 8) Concrete batch plant inspection, 9) Masonry mortar and grout testing, 10) Structural steel fabrication, erection and fastener inspection including joists and metal decking, 11) Weld inspection and testing including nondestructive examination (NDE) by ultrasound and x-ray testing
Clients are satisfied with the service provided and are committed to using the company. Comments from satisfied customers include, employee relations on jobsite, timely turnaround of daily reports, being on time for projects, and working with subcontractors to help keep their schedule going. The company is a profitable business with rapid growth potential. The backlog varies and is approximately $200,000. The seller states that the business has excellent matching books & records and that the seller can prove all sales, expenses and income. An Engineering license is not required as the company does not practice engineering. Any engineering is provided by a consulting engineer.
The company does no outside advertising. Due to its 40+ year history, the company estimates that 75-80% of sales are from repeat, returning clients. The owner estimates that their average job is approximately $80,000. The owner feels that the business could grow faster by adding inspectors (generally, 1 technician generates approximately $90,000 - $100,000/year in revenue) and a sales person calling on school districts, architects and engineers. NOTE: all sales and cash flow number are 2018 projections.
The asking price for the assets of the business is $650,000 ALL-CASH. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. Seller prefers to sell for ALL-CASH. The assets include inventory at cost of $1,000, Accounts Receivables valued at $50,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $100,000. The price will be adjusted for actual inventory, work in process (WIP) and accounts receivables as of the sale date.
We know about many businesses that are for sale but might not be advertised.

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Property Features and Assets:

The business occupies approximately 4,000+/- Square Feet of office and warehouse space with approximately 70% currently utilized. Lease is approximately $1,746.66/month. Utilities cost approximately ~$500 monthly. Seller believes that landlord is willing to offer a long-term lease and options to a qualified purchaser.

Market Competition and Expansion:

Competition:The business attracts customers from the Dallas Fort Worth Metroplex and surrounding areas (but focuses on Dallas). The owner feels that the industry is very competitive and estimates that there are more than 27 labs in the Dallas Forth Worth Area. Despite the presence of well-established competitors, the business has continued to thrive and can further grow with the addition of employees and equipment. Growth & Expansion:The strength of the company is its repeat business and referrals from the established base of customers. The company has been in business for ~40 years with 75-80% of jobs coming from repeat business through long-established repeat clients. The company does no outside advertising and does not have a company website. The owner turns away business and restricts sales to $500,000 to $700,000 per year, based on current employees/staff, as they are satisfied with the workload and pace at this level. The owner feels that by implementing the strategy below, sales could easily increase to $1,000,000 or more per year!

Reason for Selling:


Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.


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