The business has new and underutilized equipment (liquidation value ~500K) as well as agreements to do repair work with local utilities. Agreements are up for renewal at year end and represent ~80% of work. Located in a growing southeast metro area. Rev ~$1MM.
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
1. Sourcing - If you're in a metro area, then there should be a good selection of suppliers. Look to understand where the company does work and where the suppliers are. Concrete often must be refused if it takes more than 60 minutes to deliver from the plant (and ASTM standard is 90mins). This is especially relevant if they're doing work in outlying areas.
2. Employee Skillsets - Concrete can require a lot of technical expertise to finish correctly. If the company does a lot of utility work, I would expect most of the jobs to be sidewalks, curbs, etc. which require experience but not a master level. If the company does interior finished concrete, then that's more specialized and you want to ensure all of the experience doesn't reside with one person (or that the one person will stay on after the acquisition).
3. Contractor Relationships - Does the company do most of the work contracted directly with utility companies and local utility departments, or is most of their work as a subcontractor? If they're a sub. you need to understand the current owner's relationship with the GCs and how those relationships might be affected if you become the owner.