Civil Firm: Heavy Highway Excavation – Recession Resistant

They are a civil contracting firm at the top of their field, specialists in excavation and utility installation for highways, and industrial jobs and are boasting a year over year growth for the last 3 years. Their services are primarily focused on Virginia, along with Kentucky and West Virginia. This firm has a diverse list of clients, including Municipalities 36%, Government 22%, Schools 23%, and Commercial 19%. There is an impressive team in place of 120+, including 3 SVP’s, 8 superintendents, 1 office manager, 1 administrator/billing, and +/- 110 laborers. With a backlog of over $33M, there is no shortage of coming work. A buyer would be getting over $18M in assets with this purchase, including construction & transportation equipment, office equipment & software, and working capital of nearly $5M! A 3rd party appraisal was completed in June of 2022 to verify the assets. The services this business offers are deemed essential and the industry as a whole is recession resistant. The recently passed US Infrastructure Bill has over 1 trillion dollars allocated to highway work. The current owner offers general oversight (by preference), which is not necessity as owner is 80+ years old. He is willing to stay and transition for 1 year after closing. The reason for selling at this time is to retire. Something of note is that the owner could sell the equipment and cash out the A/R for more than the business price, but due to his loyalty and employees in place, he is choosing to sell the business as one cohesive unit so everyone keeps their jobs, and the business can continue to thrive as his legacy. As a show of good faith and vested interest in the ongoing success of the company, the owner is willing to carry up to 15% of the purchase price. At a purchase price of $19,000,000, and assets valued at over $18M, the bank loan would be over-collateralized by the assets on hand!