Email: [email protected]
Your Reference ID: TC1071617
Simply put, this business is among the best companies we have ever seen. The company, located in the upper Midwest, provides transportation, construction and material handling services to multiple industries – with a concentration in the mining industry. The two second generation owners, having spent their entire lives in business, look forward to pursuing completely divergent business interests after selling their company and conducting an orderly transition to new ownership.
The business maintains its corporate headquarters and operations in a 57,000 sf facility with an additional maintenance facility to support its fleet of equipment. Both facilities (along with many parcels of land) are included in the sale. The two impressive maintenance facilities allow the business to execute a very aggressive preventative program which keeps the company’s 300 (+) pieces of equipment operating efficiently.
The company is not afraid of investing in equipment when presented with new business opportunities. The company has a total machinery and equipment investment exceeding $15 million including $4.0 million in just the first quarter of 2017. The company has a successful history of negotiating long term (typically 5 year), nicely profitable contracts for its transportation and construction services. While there is customer concentration in the business, it is largely neutralized by the large capital commitment required for the work and the typical long-term contracts, thus providing very significant barriers for competitors (of which there are few) to enter.
The company has 138 employees with an average age of 44 years old. The management team includes a general manager, five project managers, an HR manager, two full time safety administrators, a purchasing manager and a CPA.
The listing price of a contemplated stock sale is $12.8 million which is comprised of (1) $2.7 million book value of the company; (2) $2.8 million appraised value of the extensive, included, debt free real estate from a related LLC; (3) $5.3 million of machinery and equipment value in place in excess of book value; and (4) $2.0 million of goodwill which includes (a) 365 day operations run with military-like precision; (b) valuable large, non-bid multi-year customer contracts in place; c) a young, well-paid and loyal work force; (d) favorable equipment financing packages with local and national institutions; (e) accurate financial data prepared by an experienced in house CPA and reviewed by an independent CPA firm; and of course, (f) annual EBITDA exceeding $3.5 million. The company also has new, solid, significant in-house revenue commitments which point to $25 million and $27 million respectively of 2018 and 2019 revenues with forecasted EBITDA surpassing $5.0 million each year. The business maintains adequate working capital in low seven figures, and the sellers anticipate carrying a seller note, also in low seven figures.
To learn more about this exceptional business opportunity please contact Tim Carter (firstname.lastname@example.org or (616) 560-1080).
Cash Flow: $3,500,000