Underground Utility Construction Company
Seller Financing Available
Asking Price:   $5,750,000Inventory:   
Gross Revenue:   $14,750,000Real Estate:   n/a
Cash Flow:   $1,500,000FF&E:   $2,500,000 ++
++ included in the asking price         ** not included in the asking price
Founded in the late 1940ˇ¦s, the company is an established institution in the Washington DC area and enjoys a long standing relationship and excellent reputation with its major clients. Most of the companyˇ¦s business is in Washington DC, Northern Virginia and Maryland with about 90% of revenue coming from three clients. New construction in the Washington area has experienced a multi-year boom that shows no sign of decreasing. It is estimated that current existing housing in our area represents only approximately 50% of what will be required by the year 2025. This, supported by job base growth (70,000 new jobs last year), housing construction in particular is extremely active throughout our area. This is where the company is most active dispatching approximately 55 crews per day. If an aggressive new owner was so inclined, in addition to the current construction revenues, there is an immediate and growing demand/opportunity for repair and replacement work on the existing infrastructure in Washington D.C. that could dramatically increase revenues. While approximately 80 % of current sales are from new construction, should this slow, past experience has shown that the utility companies tend to do more maintenance work so the companyˇ¦s sales will be self-correcting. Financials show income for the company was affected in a positive way by the Internet/telecomm boom that occurred in the late 90ˇ¦s. There was significant increased demand for telecommunications construction services. Although this has since dried up, other construction requirements have greatly accelerated. While a boom and bust cycle is one of the single biggest negative factors in the construction industry, the company has built a business that is significantly insulated from downturns and is capable of significant growth. Aside: „X Fairfax County, the companyˇ¦s home county, is the most affluent county in the USA. „X Loudoun County is the fastest growing county in the USA, measured by increased population. Note: Asking price is $6,000,000 plus Excess Wroking Capital of $5,000,000
About the Business
Year Established:1949
Employees:200 full time -
Facilities:Facilities: the company operates out of a 15,000 sq. ft. steel construction and maintenance building located on 4.7 acres. The facilities are leased at a rate of $16,400. per month plus taxes (triple net). The current lease expires February 28, 2007.
Market Outlook and Competition:As just stated, there is more work available than good companies to do it. Loudon County is the fastest growing county in the country. The entire construction business is in a tremendous growth cycle that gives no indication of slowing. Currently there are approximately 55% of the homes available in the Washington DC area will be required by 2025. Additionally a great deal of the underground infrastructure (electrical, water and cable) throughout the area is going to have to be repaired, upgraded or replaced in the next few years.
About the Sale
Reason For Selling:Owner has built the company to a point where he is comfortable but there is great growth potential yet to be fulfilled. Owner is looking for energetic buyer who can take the company to the next level. He has reached a point where he would like to do something new and different.
Seller Financing:Open to negotiation.

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Business Listed By
Taylor Devine, CBI, CMEA, BTS, FRC  |  The CDI Group
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