Construction Management Firm with $21M in WIP

This construction management firm has $21M in work in progress currently. The projects are all on the West Coast, with 50% being in Washington State, 40% in Northern California, and 10% in Oregon. As a construction management company, they offer extremely diverse services for a variety of projects, such as renovation & upgrades to massive military buildings, replace electric, chillers, plumbing systems, water mains, removal of fuel tanks, and demolition of structures. They provide all facets of construction expertise, from cost consultation, design, administration, sub-contractor and project management, and some specialty self-performed scopes of work. Clients are 90% Federal/Government and 10% private hire, including the VA, Navy, US Coast Guard, Schools, Army, and Apartments/Condos. There are typically###-###-#### active jobs concurrently. Of these, 20% are direct hires for a project, while 80% comes from bids. Only 25% of the projects are for new construction, 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. 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 $1.9M in assets, including working capital and the vehicles and equipment needed to continue successfully. CapEx remains very low at less than $200K 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 $38,000,000, a buyer is getting no shortage of talent and expansion potential!