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Name:
#1017 Traffic Control Company
Categories:
Construction Related
Region:
Southern Colorado
Industries:
Contract Construction; Construction Related
Segments:
Service
Asking Price:
$1,495,000  
Down Payment:
$385,000  
Revenue:
$1,357,396  
Adj. Profit:
$476,356  
Adj. Profit Type:
Seller's Discretionary Earnings  

Traffic Control Company - For over 20 years, this well-managed Traffic Control and Flagging Services Company has seen continued growth, due to its long term involvement with the Colorado Department of Transportation (CDOT) and various municipal projects.   The construction industry remains very strong in Colorado and this business is poised to capitalize on the state’s infrastructure planning.   The owners are looking to retire, making this business a great acquisition for a regional industry buyer or an entrepreneur looking to acquire a well-established, profitable business and expand into other areas of the state.  Contact Robert Amerine.    BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.