Earnings are growing faster than that, at a 30% per year pace. But 2018 is a slower year, a "breather" if you will. Lots of pipeline, but not as much completion activity.
This general contractor does virtually all its work in Maricopa county with a book of customers and a cadre of subcontractors performing, primarily, interior commercial projects.
A team of motivated project managers create the work, the revenue and the earnings. The owner "clips coupons" but at 70 years old, has decided to pass it along. The books are "clean" and the numbers are after an annual charge for Profit Sharing which is, technically, discretionary but that the owner does not want to show as Owner Benefit--it is one of the secrets of the business.
Net Owner Benefit (after payment of the Profit Sharing to the project managers and staff) including salary and Net earnings has averaged over $600,000 over the last four years and last year was $822,890.
Accounting is "management friendly" not "investor friendly." Income is recognized when the job is complete, not on a percentage completion basis. Earnings are choppy, but at the end of the day, it comes out the same.
Everything is set up. The Seller is ready to move on. Price is less than 2 times Net Owner Benefit (weighted average) and about 1.5 X last year's. Capital needed will have to include about $800,000 for Accounts Receivable.
About the Business
Contact the Seller
- Year Established:
- Number of Employees:
General office space. This company does not self-perform.
Competitive business. Primarily performing commercial, interior work. Tenant finish, etc.
Growth & Expansion:
The stage is set. Growth has been good. Ask about the 2008 and 2009 downturn? They did not experience it because they have an established book of clients and good sub contractors.
About the Sale
- Reason For Selling:
Retirement. Owner and wife are 70 years old.
At least 60 days of owner support, more available upon request.
- Ad Detail Views: