Seller Financing Available
IL Const Co. $30MM in Rev for 2014, $3.5MM Hard Assets, 68 Yrs old
IL Const Co, 68 Yrs old, 3.5MM Assets, will do 30MM Rev in 2014
2013 Cash Flow is $850 on $20MM in Sales. They have a record backlog heading into 2014 and just got a $6MM contract that will benefit the new owner right away.
Only $3,000,000 Down at Closing and Buyer Instantly Gets over $3,5 in Hard Assets. Over 50% Recurring Customer Business with Customers including Coca Cola, Exelon, Del Monte, Mas Tech, and many other large corporations. They have worked with several of them for two or three generations.
80% Design/Build with 1 Architect and 1 Graduate Architect on Staff
Sales Price $4,900,000 With $3,000,000 Down at Closing. Buyer Instantly Gets over $3.5MM in Hard Assets!
Location: West of the Western Suburbs of Chicago, IL
Terms: $4,900,000 with $3,000,000 down at closing and the seller will carry $1,900,000 over 5 years paid from the income of the business. More specifically, the buyer will get $1,520,000 (appraised June 2011) in real estate worth over $1.65MM now which is the main facility and land where the business operates, $663,672 of equipment (Quick Sale Value), $550,000 of “current” inventory(QSV), and $700K of scrap value "off the books" useful inventory. This totals over $3.5MM.
Just call Jeff Chapman at 303-382-1926 or email me at email@example.com
Brief Overview and Selling Deal Points:
The buyer also will get both the Accounts Receivables and the Accounts Payables. The sellers will guarantee that the AR is not negative to the AP at the closing. As of December 2013, it is $200K positive. The buyer will be allowed to leverage the real estate to 1) grow the business or 2) recover some of the down money that they brought to closing since all debts except Accounts Payables will be paid off at closing.
Sale Includes: $663,672 in heavy equipment, trucks, specialized tools, etc at quick sale value. $550,000 in current inventory. They counted all of the inventory in early June 2011and got rid of several dump truck loads of old inventory. The company has 5.74 acres of fully-functional land with 3 main buildings totaling about 31,000 square feet. The land and building were appraised in June of 2011 for $1,520,000 and should be worth at least $1.65MM now. They also have $1MM in useful inventory that is worth $700K in "off the books" inventory.
Since 1946 we have constructed hundreds of large-scale commercial buildings. In fact, we have constructed millions of square feet of commercial space in virtually every aspect of commercial construction. This includes; libraries, hospitals, schools, city halls, medical centers, retail space, large-scale malls, industrial parks, office buildings, and manufacturing facilities.
We have the oldest exclusive territory with the nation’s #1 manufacturer of pre-engineered steel buildings in the world. More specifically, we have exclusive rights to 9 counties and have constructed over 200 pre-engineered metal buildings in just ONE zip code alone! We were named “Builder of the Year” (call broker for the actual reference) several times, and our firm was awarded the valuable title of “Career Buildership,” which is only offered to continuous elite performers.
Since 1946 we have been the premier builder in our market. We are always proud to say that over 50% of our customers are repeat customers. We have hundreds of long-standing customers that know us and trust us. Many of these companies are some of the largest companies in the world. “THIS” is our largest and most valuable asset being sold in this transaction – the future value of all of the work that the new owner will garner form these loyal customers.
The buyer will immediately step into a steady stream of work-in-progress, much of which is from long-standing customers. More specifically, we have over $13,000,000 in signed contracts and work-in-progress heading into 2014. The margins and profits on this contracted work is better than the margins we have enjoyed in the past. The new owner will have a solid pipeline of very profitably work.
The company has benefited by their location just outside of Chicago by seeing a large increase in the size of the jobs that have migrated to them over the years. The seller says “The work just comes to us without any outbound or pro-active sales/marketing efforts. We’re a Design/Build General Contractor with in-house architectural services; which makes us very unique in our trade area, and gives us a huge advantage over our competitors.” It is important to state to this point that we have just one large competitors to speak of in our entire market. It doesn't have an architect on staff, our size/reputation, or the quality/number of satisfied large companies that they have built for. Therefore, we can concentrate on larger and more profitable work.
They say, “ you are as good as you employees”. The sellers insists that they have the finest employee-base in the country. We have 19 employees that have an average tenure of over 15 years with us. Loyal employees who spend their entire careers with us, is a key to our continued success. We currently have 3 second generation (non-owner) employees.” This speaks volumes about their loyalty and commitment to the company. The new owner will not need any specific construction experience as we have all systems in place to estimate work and run jobs with the employees we have right now.
Bonding Big Jobs: We are trusted with big jobs because of our size, history of professionalism, and by getting the job done right and on time. Bonding is more difficult today than ever for our competitors. Less-established competitors have to bond many jobs that we don’t have to because of our history, size and solid reputation. As of late February 2014, we have no jobs that require bonding.
The company has become a leading provider of buildings to the Windmill industry (wind farms). They have designed and built 7 operations and maintenance buildings (for wind farms) and currently have 20 additional active bids to get new jobs. This is giving them national exposure with a very good profit margin. Ask for the sales packet for more details.
The company is 68 years old and has the biggest name and the finest reputation in their region. As stated, the seller will agree to full Reps and Warranties to a solid legal and business standing. “We have a great record for safety (OSHA), extremely satisfied clients, no legal battles, and a .92 MOD rate,” The company MOD rate is very low at .92. This low MOD rate saves money on annual insurance premiums and demonstrates the quality and safety of the employees.
Another area to immediately grow the business is to hire 1-2 new estimators. Currently our sales people are spending far too much time estimating instead of selling. A new owner can come in and increase sales immediately by freeing up the sales staff’s time so they can call on the existing list of hundreds of long-standing customers. Is it important to understand at this point that we have not historically done any “pro-active” marketing efforts. Most companies that gross $30MM have an aggressive team of pro-active out-bound sales and marketing efforts. All our work comes from in-bound call-ins and unsolicited bid inquires at almost zero cost to us.
Historically, we have operated in a 70 mile radius of the office. This is the way the ‘we have run our operations’ for many years. The new owner does not have to stay within the geographical limits that we have limited ourselves to. The new owner can, and should, increase the geographical radius (market) to something closer to 125 miles or more. This would effectively triple the market size and potentially triple the amount of work that can be pursued.
The sellers are fully committed to a solid transition to the new owner and will do “whatever it takes” to ensure a smooth and orderly transfer of employees, customers, and vendor/sub-contractor relationships. They will stay as needed short or long term. The sellers are so confident the short and long term success of the business going forward, that they will carry 40% of the sales price. The sellers loves their business, the people and everything about it. It has been their life and passion for many years and they want to see its legacy thrive for many years to come. In short, as stated above, they are motivated to do “whatever it takes” to ensure the business continues to grow and succeed.
In summary, the new owner should increase both revenues and net income steadily in the future based on our reputation, new working capital allowing the bonding of new jobs, hiring estimating personnel, pursuing additional markets, and by just enjoying the predictable growth that is taking place as Chicago expands west.
Thank you for your interest in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216