Texas Concrete Services Business

Is buying a business in an industry with sub-10% margins a good idea? Well, that depends on the business, and in the case of this Texas concrete contractor, their industry-defying 36% margins at least warrant double-clicking to learn more. Texas Concrete Contractor - http://bit.ly/3VsH8Mn Operating with a lean team and a young fleet, this company generates steady recurring work from residential and commercial contractors. The secret sauce - vertical integration... While most concrete subs buy from batch plants at $###-###-#### per cubic yard and outsource half the work, this operator likely produces their own concrete (cutting costs to ~$110/yard) and owns the complete pour process - formwork, pumping, finishing, everything. The result? They're capturing###-###-#### margin points better than their competitors while delivering better service to clients who become loyal repeats. Their Texas location also doesn't hurt. Texas leads the nation with $50B in construction spending and no signs of slowing down. What I like: - Vertical integration creates a real moat - Young fleet = minimal capex - Experienced team staying post-acquisition What I'd focus on in diligence: - the vertical integration... are these margins truly defensible over the long term? - the transferrability of these GC relationships... are those life-long golf buddies who will shop their business to someone else? This business appears to be engineered for more enduring profitability in a challenging market, so if these assumptions hold true, it could be a great acquisition for the right buyer. What's your take? Would you consider this business, given the overall margin challenges in the industry? ------------------- Search Assistant helps buyers save time and move faster on on-market listings. Sign up today for a 14-day free trial to explore deals like this and more in your backyard!