Busy Excavating CoBig Long Term Contracts,Relocatable,Mostly Absentee

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Great Reputation, Recurring Customer Base, Big Growing Potential
Asking Price:
$1,250,000

Gross Revenue:
$1,230,000
Cash Flow:
$378,000
EBITDA:
$378,000
Inventory:
 Not Disclosed

FF&E:
$675,000
included in asking price

Real Estate:
 Not Disclosed

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Business Description

Excavating Company with Big Long Term Contracts
North Front Range from Castle Rock to Wyoming boarder Excavating Company. The

Owner can be Located anywhere. The current owner works out of his house.
The trailing 12 months earnings were 378K from 1.23M in revenues. 2017’s earnings were 255K from 1.03M in revenues.

The buyer will get approximately 675K in the current value of hard assets made up almost entirely of new or well-maintained heavy equipment including 4 excavators, 4 front end loaders, 2 dump trucks, a low boy 40 ton trailer, etc. This company has contracted work with home builders to dig the holes for entire new subdivisions which take years to complete. These are the biggest jobs available and the most profitable since they don’t have to move their equipment around. The company is shown business every week that they turn down in favor of these larger contracts. The size of the assets combined with the size of the signed contracts combined with the size of future Work in Progress supports a high multiple on earnings. This company is priced at 1.25M which is 3.3 X the trailing 12 months earnings. Typically a company with easily to liquidate assets that make up 50% of the sales price would carry a multiple of at least 4 X the earnings.

The company has many loyal and amazing employees that have been with the company for a long time. They also have great relationships with many home builders, general contractors, and developers. The owner does not work in the field and still works as a commercial pilot.

The owner wants to start a regional charter airline company and has already bought the first airplane. He will help the new buyer and is confident that it will be a smooth transition. The company will not change the day of the sale. The equipment/employees are fully booked for a long time to come.
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The sales price is 1,250,000 which includes all assets debt free. This price is 3.3 times the trailing 12 months earnings. The seller will be keeping their cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. It is an LLC so this will most likely be an asset sale.
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Brief Overview and Deal Points:

Growth and Expansion: A new owner can increase advertising, increase their service area, work harder than the current owners, and take smaller jobs with they are shown all of the time. This would further diversify their revenues and lead to additional sources of referrals and future work.

The business has very loyal and long term employees. There are 4 full time employees and two owners. One owner only works 20 hours a week doing some administrative work. The other is absentee. The employees are all hourly which keeps fixed costs in line with revenues. The employees are trustworthy, competent, and reliable. This company has a stable labor force.

The business is being run out of their house north of Denver. The employees and equipment are on site at their jobs. There is no equipment or assets kept at their house. A new owner can run this from anywhere.

They have a great reputation for safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.

Colorado is the best State in the country to own a business. Denver, the entire Front Range, and most of Colorado are among the fastest growing areas in t

About the Business

Year Established:
2015
Number of Employees:
4
Facilities:
They work out of their home.
Market Outlook/
Competition:
This company has contracted work with home builders to dig the holes for entire new subdivisions which take years to complete. These are the biggest jobs available and the most profitable since they don’t have to move their equipment around. The company is shown business every week that they turn down in favor of these larger contracts.
Growth & Expansion:
Growth and Expansion: A new owner can increase advertising, increase their service area, work harder than the current owners, and take smaller jobs with they are shown all of the time. This would further diversify their revenues and lead to additional sources of referrals and future work.
Contact the Seller

About the Sale

Reason For Selling:
The owner wants to start a regional charter airline company.
Training/Support:
The seller will help in transition and will stay as long as needed.
Seller Financing:
20%

Listing Info

ID:
1558200
Ad Detail Views:
644

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Business Listed by

Jeff Chapman Eisnaugle

Business Broker Colorado
License# 100054090

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