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Name:
#319 Recreational Facility Construction Contractor
Categories:
Construction Related
Region:
Colorado Front Range
Industries:
Construction Related; Contractor; Building and Construction Services
Segments:
Construction
Asking Price:
$4,400,000  
Down Payment:
$660,000  
Revenue:
$6,206,597  
Adj. Profit:
$1,430,247  
Adj. Profit Type:
EBITDA  

Recreational Facility Construction Contractor - Profits for 2018 are over $1,400,000 for this elite recreational facility contractor, which serves a specialized high-end niche of the construction industry. It has a backlog of $8,000,000. The company has very limited competition. It primarily serves the Colorado Front Range, but works throughout the state on major projects that have solid profit margins. The company has long-term client relationships, having been in business for over 30 years. The clients are mainly general contractors, engineering firms and architects. An experienced, well-trained workforce is in place. This business would be appealing to an individual experienced in construction or a construction-related firm looking to expand. The real estate is available for purchase. The business will qualify for a long-term SBA guaranteed loan with a relatively low down payment and provide the purchaser a return on investment of 91%. Working capital of $500,000 Accounts Receivable and $125,000 Inventory is included in the transaction. Contact Ron Brasch, rb@fbb.com. 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.