Seller Financing Available
IL Const Co. $27M in Rev, $3.3M Hard Assets, 68 Yrs old
IL Steel Frame Const Co, 27M Rev, 3.3M Assets, Huge Backlog
68 Year Old Design/Build Large Commercial Construction Business
Revenues are up 84% compared to the same period last year with $13,583,681 in revenue vs $7,188,134 as of September 30, 2014 which is 7 months into their Fiscal Year. Last year they finished the year with over $17MM in revenues and they are one track to beat $27MM this year.
Their net income is $602K higher than last year as of September 30th also. They also have the majority of their invoicing in the last one third of their fiscal year which ends February 28th and have the largest amount in their history already signed that will carry over into next year. In addition, they will be adding a $6MM contract in December of 2014 and another is expected for approximately $10MM early next year which will all benefit a new owner. Combined, they are set to have another record year next year and need to expand their headquarters size because of their current growth.
2,750,000 down at closing and buyer instantly gets 3,350,000 in current value hard assets debt free including 1.7MM in real estate owned by the company!
Over 50% Recurring Customer Business. Customers like Coca Cola, Del Monte, Exelon, Mas Tech, and many other large corporations. We have done work for many of them for two or three generations.
80% Design/Build with 1 Architect and 1 Graduate Architect on Staff
Sales Price is 4,900,000 with 2,750,000 Down at Closing for an Asset sale. This is a C corporation and the sales price is equivalent to a $3.2MM sales price because of the 1.7MM in real estate that is included and owned by the company($4.9MM minus $1.7MM value of real estate equals $3.2MM). They are expected to make over $1.5MM in adjusted EBITDA this year which makes this a very low multiple for this company by the end of this Fiscal Year.
There are many very special features to this company including the fact that they have 9 counties as the exclusive Butler Builder in IL(Butler is the largest pre-engineered building designer in the world), is the oldest Butler franchise in the USA, have never lost a building during construction, gets over 50% of their business through repeat customers, rarely needs bonding for jobs based on their reputation and currently does not have any bonding required on any job they are working on nor did they have any last year.
Location: Northern, IL
Terms: 4,900,000 with 2,750,000 down at closing and the seller will carry 2,150,000 over 5 years paid from the income of the business for an asset sale. They are keeping their Cash(except deposits and retainage), Account Receivables, and Cash Value Life Insurance that is on the Balance Sheet and transfer the business debt free. If it is a stock sale and the buyer wants any portion or all of their Cash and “net” Account Receivables then they will adjust the price up by that value at the closing. Just click and fill out this NDA link for the sales package: NDA link is: http://companybroker.com/buyer-profile-jeff.htm You may also call Jeff Chapman at 303-905-7607 or email me at firstname.lastname@example.org.
This company has very predictable future growth. They are located in an area where regardless of the economy and what you may think about construction, they will continue to grow both in the number and size of jobs. The more you learn about this business the more you will like it.
Brief Overview and Selling Deal Points:
The buyer gets approximately 3,350,000 in assets Debt Free. The buyer will be allowed to leverage the real estate and assets to help finance the purchase.
Sale Includes: 663,672 in heavy equipment, trucks, specialized tools, etc. at quick sale value. 550,000 in current inventory and another 500K in useful inventory that is "off the books". They counted all of the inventory in early June 2011and got rid of several dump truck loads of old inventory. The company also owns 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 are worth at least 1.7MM now.
They have the oldest exclusive territory with the nation’s #1 manufacturer of pre-engineered steel buildings in the world. More specifically, the company has exclusive rights to 9 counties and have constructed over 200 pre-engineered metal buildings in just one zip code alone! They were named “Builder of the Year” by Butler several times, and their firm was awarded the valuable title of “Career Builder ship,” which is only offered to continuous elite performers.
Since 1946 we have been the premier builder in our market by constructing hundreds of large-scale commercial buildings. In fact, they 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 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 large amount of work-in-progress and a record amount of signed contracts as of mid-October 2014, much of which is from long-standing customers. More specifically, they have almost 17,000,000 in signed contracts and work-in-progress currently with at least 20,000,000 expected by the end of November which is a record for this time of year indicating a great chance to have total revenues of at least $27MM for this fiscal year. The margins and profits on this contracted work is better than the margins they have enjoyed in the past. The new owner will have a solid pipeline of very profitably work. Also important is that they work in a seasonal climate which means that they lay slab in the spring, spend money on materials in the early summer, and then the invoicing starts to exceed the payables.
The company has benefited by their location by seeing a large increase in the size of the jobs that have migrated to them over the years because they are in a strong future growth area which you will learn more about from the sales package detailing their location. 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.” They have just one competitor to speak of in their entire market that doesn’t have their reputation or the type and length of relationships that they have with some very well know customers or the ability to build Butler buildings in their 9 counties. Therefore, they can concentrate on larger and more profitable work.
The sellers insists that they have the finest employee-base in the country. "We have 18 employees that have an average tenure of over 15 years with us. Loyal employees who spend their entire careers with us. 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 because they have the systems in place to estimate work and run jobs with the employees they have right now. The company has the biggest name and the finest reputation in their region. As stated, the seller will agree to full Reps and Warranties. “We have a great record for safety (OSHA), satisfied clients, no legal battles, and a .92 MOD rate,” This low MOD rate saves money on insurance premiums and demonstrates the quality of the employees.
Bonding Big Jobs: They are trusted with big jobs because of their size, history of professionalism, and by getting the job done right and on time. Bonding is more difficult today than ever for their competitors. Less-established competitors have to bond many jobs that they don’t have to. As of mid-October 2014, they 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 21 tornado proof operations and maintenance buildings (for wind farms) and currently have 10 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.
One way to immediately grow the business is to hire 1-2 new estimators. Currently their 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. It is important to understand at this point that they have not historically done any “pro-active” marketing efforts. Most companies that gross 20MM to 30MM have an aggressive team of pro-active out-bound sales and marketing efforts. All of their work comes from in-bound call-ins and unsolicited bid inquires at almost zero cost to them.
Historically, they have operated in a 70 mile radius of the office. This is the way the they have run their operations over their entire history so their workers can come back to their families every day. Although, they have loosened up on this in recent years, they still have a strong bias toward work that is close to their location. The new owner can further extend the geographical limits that they have limited themselves to with the support of the employees whom they have recently found don’t mind. If the new increased geographical radius (market) is closer to 150 miles or more, this would effectively almost triple the market size and amount of work that can be pursued.
The sellers are fully committed to a solid transition to the new owner and will ensure a smooth and orderly transfer of employees, customers, and vendor/sub-contractor relationships. They would like to stay long term and keep their jobs and are very hard working responsible and capable people that all get along and always have. I can tell you the reason for selling after you send in the NDA. An owner can buy this and leave them in place and oversee the operations with several choices as to whether they want to add working capital to acquire a sub or two or to advertise, etc. The sellers are so confident in the short and long term success of the business going forward, that they will carry 40% of the sales price. As stated above, this is a 68 year old company. The sellers love their business, their employees, 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 participate in the growth and continued success of the business. In summary, the new owner should increase both revenues and net income steadily in the future based on our reputation, hiring estimating personnel, pursuing additional markets, and by just enjoying the predictable growth that their area will have as Chicago grows to the west in the future.
Thank you for your interest in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216