Seller Financing Available
17 Yr. Old Large Comm./Res. Excavation, Demolition, Sewer and Water Co
$750K in Assets. 2013 Cash Flow Over $700K, Asbestee Owner Now.
Denver County, CO
Seller will Carry $700K or a $1,500,000 Sales Price.
New Offering - 17 Yr. Old Large Commercial/Residential Excavation, Demolition, Sewer and Water Company
Sales Price - $1,500,000
2012 Cash Flow was $786,365 on $2,552,459 in Sales
2013 WILL Cash Flow over $750K on over $2.8MM in Sales, the seller asserts.
Selling for 1.2 X's Cash Flow AND Includes almost $900,000 in solid assets and equipment (Completely Debt FREE at closing!!)
We are the leader in our 17 year history and are one of the largest and most profitable excavating and demolition companies in our market.
We are having our best year in 5 years. We have 2-3 X's more work than we can handle because the seller is 90% absentee.
The new owner need NO industry or technical experience, but should have a solid business mind and be committed to work.
We are a 17 year old Commercial/Residential Excavation, Demolition, Sewer and Water Company. We specialize in high-end home tear-downs, excavation and demolition, and sewer and water hook-ups. We also do some of the highest profile large commercial demolition work in Denver metro. This work is roaring back right now, and this is our sweet spot.
The seller is fully committed to sell the assets of the business and will agree to full Reps and Warranties to a solid legal and business standing, no ghosts in the closet . We have NOT had one client complaint in all 17 years of operation. We have never had a bond called, ever been removed from a job, or had an insurance claim. We have a stellar track record of finishing jobs on time and on budget. We have a perfect track record. We also have a stellar worker s safety history without one claim in the past 7 years! We have the lowest insurance and workman s comp rates available due to our perfect safety record. We also have a perfect OSHA and safety record.
Please email email@example.com or call Paul at 303-382-1900 for a comprehensive sales packet with the past 5 years of financials and tax returns, and a detailed 40 minutes video interview.
Since 1997 we have completed over 1,000 demolition and excavation jobs. Today we enjoy an incredible steady stream of call-ins and referrals from our excellent reputation for fair dealings and great work. We are the largest Demolition and Excavating business in Colorado based on the number of permits issued the past 5 years. In fact, we have been issued more than 1/3rd of all permits issued in the entire Denver area in the past 5 years. We consistently work for the largest and busiest contractors, and also public entities and municipalities. Denver has a solid tax base and tax revenues are some of the strongest in the country. Therefore, there is plenty of money to upgrade infrastructure and begin new work, etc. But our bread and butter has always been high-end residential tear-downs and excavation in tight areas. Very few companies have the equipment and skilled equipment operators to complete this work in tight areas and in short time periods. This is why we get the biggest margins. "We charge for it, and they pay it", the seller asserts..
The sale includes over $850,000 in heavy equipment – the is “quick sale” or auction value. Over the past 2 years the seller has invested over $800,000 in back into the new equipment included in the sale. The equipment is late model, and well-maintained and will run for years to come without replacement. The seller says, “everything is here to make $4MM/year and no other equipment is needed. At this level the business would cash flow over $1,800,000/year. We just need someone to work it full-time and stay committed.
The seller has been running the business 90% absentee owner as he owns 2 other businesses (landscape and recycling materials companies) that are growing at an explosive rate. “If the new owner worked full time and hustled the jobs, sales and cash flow would immediately double or triple over 5 years”, the seller insists. We literally have jobs "racked and stacked" for the next 2 months out. We have hundreds of long-standing customers that year-after-year call us to get jobs done, and often we don't even have to compete for them; just estimate the job, then do it. We often write our own ticket - which has incredible margin. We have never done any form of sales and marketing efforts. We don’t even have a website or phone book advertisement. This is one of the areas that need to be improved by the new owner. They rely strictly on call-ins in the past. The work just comes to us from the past 17 years of jobs we have done in the past.
We are fully turn-key and are a full service demolition and excavation business. Most companies do just 1-2 aspects of the work that our client demand of us. We do it all and as a result, our top 100 customers use us over and over again. We are “one-stop shopping” for them – this is key to our success.
There is a tremendous opportunity for growth by simply taking on more work that we are asked to do. The seller has been the “bottle neck” of the business because of his many other commitments. The business also needs updated systems and procedures to get up to $6MM-$7MM/year levels. But these can all be easily implemented.
We have 15 solid and long-standing employees that love and take pride in their work. The operations manager/estimator has been with the company for all 17 years and is committed to stay on to grow the business back up to 2008 levels. We just need another estimator, additional office staff and obviously more field hands for the additional volume to get to $6-7MM/levels.
We are a mid–size demolition company with very little competition in our market because much of our direct competitors have gone out of business due to the economic downturn. Most-all other companies have substantial debt on their equipment and held large overhead in their companies. So, when things fell in the economy they couldn’t make payments or make payroll. Conversely, we have NO DEBT and have the lowest overhead structure possible. Again, this is why we cash flow is always so strong on $2.34MM in sales. Other companies can't hold these margins. Over the past 17 years we consistently hit a 65% Gross Profit Margins which is incredible with our low overhead. In short, the cash flow is excellent whether we gross $4mm or just $2.5MM. The average GP in the industry (our competitors) is just 30-40%.
The buyer will step into a great work in progress (WIP ) report of large to mid-size commercial jobs we have on the books for the summer and fall of 2013. We are slammed with work right now and for the next 4-5 months at least. High-end home tear-downs and re-builds are roaring back right now, and so is large scale commercial demolition. This is our sweet spot. We have all the work we want and the new owner can take on $3MM, $5MM or $10MM in new work if they want - all the highest-margin and profitable work is out there for the taking, at least for us. This is because we are tried and true. Other smaller and less established competitors do not have the equipment, experienced employees, but more importantly, reputation and trust that we have spent years building with these contractors and municipal entities.
We have very low overhead and an excellent business model for growth. The seller works just 5-10 hours/week on this company, and is selling because he has 2 other businesses and over $8MM in commercial real estate he needs to manage.