Looking for a buyer.
This firm manages renovations and maintenance for military bases with projects across the West Coast. 50% of which are in Washington State, 40% in Northern California, and 10% in Oregon. Located in Tacoma, WA, they offer diverse services such as upgrades to massive military buildings, replace electric, chillers, plumbing systems, water mains, removal of fuel tanks, and demolition of structures. Clients are 90% Federal/Government and 10% private hire, including the VA, Navy, US Coast Guard, Schools, Army, and Apartments/Condos. There will not be any impact on this business should there be a recession. In fact, due to the newly passed US Infrastructure Bill, this business will have organic growth as the bill had many set asides for our military bases. There are typically###-###-#### active jobs concurrently. Of these, 20% are direct hires for a project, while 80% comes from bid invites. Only 25% of the projects are for new infrastructure, 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, several of which are multi-year contracts. They have over $21 million in backlog with more in the pipeline and the conservative projection for 2023 is over $35 million in revenue. 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 $37,000,000, a buyer is getting no shortage of talent and expansion potential!
Seattle, WA, USA
Seattle, WA, USA
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