Infrastructure Renovations for Government

Tacoma, WA


Asking Price: Annual Revenue:
$36,000,000 $28,238,532

Services: Construction, Contractors


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RE: Infrastructure Renovations for Government Broker: Jared Olson
Owner Financing is Available!
70% Buyer & Lender $25,200,000 30% Seller Financing and/or Equity Roll $10,800,000

Quick Facts

Asking Price: $36,000,000
Annual Revenue: $28,238,532
Net Profit: Not Disclosed
Cash Flow: $6,316,952
Total Debt: Not Disclosed
FF&E: $1,511,221
Real Estate: Not Disclosed
Year Established: 1999
Employees: 35
BBN Listing #: 700334398
Broker Reference #: CBI036-C

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Business Overview:

This firm manages renovations and maintenance for military bases with projects across the West Coast. 50% of which are in Washington State, 40% in Northern California, and 10% in Oregon. Located in Tacoma, WA, they offer diverse services such as upgrades to massive military buildings, replace electric, chillers, plumbing systems, water mains, removal of fuel tanks, and demolition of structures. Clients are 90% Federal/Government and 10% private hire, including the VA, Navy, US Coast Guard, Schools, Army, and Apartments/Condos. There will not be any impact on this business should there be a recession. In fact, due to the newly passed US Infrastructure Bill, this business will have organic growth as the bill had many set asides for our military bases. There are typically 20-30 active jobs concurrently. Of these, 20% are direct hires for a project, while 80% comes from bid invites. Only 25% of the projects are for new infrastructure, with 75% being focused on repairs and renovations of existing structures. The largest project is $11M, the smallest is $9,000, and the median is $2M, showing a diverse range of jobs, several of which are multi-year contracts. They have over $21 million in backlog with more in the pipeline and the conservative projection for 2023 is over $35 million in revenue.

A multi-layer management system is in place where there are about 35 key employees, including a President, CFO, 4 Project Managers, 2 Engineers, 5 Superintendents, 2 Foreman, 5 Estimators, 4 Quality Control, plus Admin, IT, and Assistants. Additionally, there are 85 suppliers and 6,567 subcontractors. Having a well-developed leadership team allows the owner to work remotely. He spends about 15 hours per week in the business having only 3 direct reports. He meets with his President & CFO and consults with the Chief Estimator when needed. The owner describes himself as having no day-to-day role and that he is more strategic. He is willing to stay up to 5 years post-close and will also offer a promissory note of 15% plus an equity roll of 15% as a sign of good faith. With the purchase, a buyer would receive $1.5M in assets, including working capital and the vehicles and equipment needed to continue successfully. CapEx remains very low at less than $200,000 per year.

With their experience handling private commercial work, this would be an easy growth opportunity to return to. In addition to this, the business has licenses to handle jobs on any federal property. With the newly passed US Infrastructure Bill and regular work with the VA/federal contracts, there is no shortage of projects for this company. Priced at $36,000,000, a buyer is getting no shortage of talent and expansion potential!

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Property Features and Assets:

Vehicles: $787,890 WIP: $21,115,000 A/R: $5,187,085 A/P: $4,463,754 Working Capital: $723,331 CapEx: Very low, less than $200,000 per year Prepaid Expenses: $5,991,859

Market Competition and Expansion:

With their experience handling private commercial work, this would be an easy growth opportunity to return to. In addition to this, the business has licenses to handle jobs on any federal property.

Reason for Selling:

Retirement planning.

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.

Documents:

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