Denver County, CO Heavy Construction Businesses For Sale

Heavy ConstructionColoradoDenver

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25 yr. Absentee-Owned Demolition, Excavating, Recycling FacilityCash flows of $2.9 on over 7.8M in sales. 2019 is up even higher. $5M in Assets
$7,500,000Cash Flow: $2,918,436Seller Financing
25 yr. Absentee-Owned Demolition, Excavating, Recycling FacilityCash flows of $2.9 on over 7.8M in sales. 2019 is up even higher. $5M in Assets

Denver, CO

South East Metro Denver: Denver Demolition, Excavating, and Recycling Center Inc. for sale. 25 Yr. Old Niche, absentee-owned, Denver business provides comprehensive demolition, excavating, as well as a centrally-located 5-acre recycling center for most-every type of landscaping and construction material. Cash flows of $2.9 on over 7.8M in sales. 2018 Cash Flow was $2,918,436 on sales of $7,841,965 2017 Cash Flow was $2,661,241 on sales of $6,599,171 2016 Cash Flow was $2,538,297 on sales of $5,677,710 Sales Price and Deal Structure: The sales price is $7.5M with at least $5M of that down to closing. The seller will carry up to $2.5M paid over 4 years. At closing, the buyer will receive well-over $5M in heavy equipment and a wide righty of assets and small tooling beyond that is completely debt free as the business has no significant debts on the balance sheet currently. In summary, the buyer is putting down $5M and is getting well-over $5M of assets at the closing. A business that cash flows an average of $2.7M in and of itself is arguably worth 3 to 4 times that amount, and of course, a business that is absentee-owned and has this level of liquid equipment would typically sell for say 3.5 times $2.75M, which is approximately $12-$13 million. In other words, the buyer is paying about 500K less that “the value of the assets they are getting” at the closing and is carrying 100% of the goodwill and blue sky (intrinsic value) of the business in the $1.8M note. The buyer MUST HAVE no less than $1MM of their OWN $1M to put down on this deal for the SBA to do the deal. (really about $700K, but we wanted a margin.) Who We Are: We are an absentee-owned $7.9/yr. demolition/recycling/excavating business for commercial and residential construction projects. As part of our comprehensive services we also do sewer and water hook-ups so that we are one-stop shopping for our customers. We cash flow approximately $2.9 million per year on sales of $7.9M+. We have been operating in Denver Metro for almost 30 years. We are so well established that, unlike our competitors, we have no longer have to “bid” most jobs; the work is just handed to us and we give them a price and in almost all cases we get the contract. Only 10 or 15 years ago we didn’t have the name and established reputation that we have today for solid work that exceeds expectations and is completed before schedule. Today, we have 39 of the strongest workers in the industry and the finest equipment to do any type of project in our established niche market. The business is owned by 1 person who does not manage any of the day-to-day operations and as of recent is almost completely removed from the business. Today, the business is run by 4-5 key employees who love their jobs. We have a massive recycling center that charges great fees to receive materials and we sell recyclables to recycling companies out of our massive processing facility. On 5 central acres in the Denver metro, every day (6 days a week) we receive 1,000 – 1,000 tons per day of many landscape and recycling materials. Just to give a sense of the scale of this operation, we have a new $420,000 impact crusher and a new $220,000 jaw crusher which are designed to process up to 2,000 tons per day for recycling material. In the simplest terms we will have between 75 and 150 tractor-trailers coming through our yard 6 days a week bringing recyclables and landscape waste to our large processing center and we charge market fees for this inbound material. Then we separate and process these varied materials and then the end product of a wide variety of metals, aggregates, and soils are sold out the other end of the facility to other recycling centers and end users of these recycled commodities. In the last 3-5 years our facility has grown enormously in terms of its capacity to handle material and will now cash flow between $3.5-$4M on sales of $10M-12 easily with the new equipment that we have. Our customers who bring waste to us are very wide and varied from dozens of different industries, again, who pay us dump fees to deposit their debris in our central location. Then we sell the end product after processing to no less than 10 large metal/concrete/aggregate companies who and pay solid fees for these recycled products for these commodities that they ultimately sell to their end users. An example, we buy materials that we can recycle for say $16.50/ton and after we process the same material, we sell it to recyclers for $40/ton. We have the best (ONLY) recycling facility within a 10-15-mile radius: Like a gas station that is the ONLY gas station within a 10-15-mile radius, we can pretty much charge a nice premium for our inbound tonnage from waste haulers. We charge normal market rates for most waste/debris, but we could raise our prices simply because either they pay it, or drive it 10-15 miles north or east and incur the fuel and trucker drive time, etc. when you are the only game in town you are calling the shots and there will be no other facilities coming to compete because all the land in our radius used up and zoning for a recycling facility would not be possible or economically practical for a new competitor. This is everything to ensure stronger margins for the new owner, but again, the seller has not pushed prices to where they could be. In terms of demand for both ends of this operation, there is a never-ending demand from construction companies and individuals to bring waste to our facility. In fact, the demand to dispose and recycle materials is greater in our 15-mile radius then we are currently receiving by a long shot. We are only receiving a small percentage of waste and recyclables in our market, and the rest are taken to facilities that are much further away than where we are, and of course “miles are money” in the hauling industry. We just need start marketing our existence and our capacity to customers that don’t currently use us to let them know that we are here and what we do. In summary, we are the only facility to take this waste in all of north metro Denver and have the fastest on/off access to 3 major highways. It must be made clear here that at no point in the past have we done any form of sales or marketing or business development efforts to grow any aspect of this recycling facility as well as the demolition and excavating arm of the company. Our website and internet presence is just 1 year old – new site last year. Simply put, a new owner could dramatically increase the amount of material that can be brought to this facility by creating awareness and this is something we never pursued in any regard, in terms of bringing in more materials and waste, and selling the end-recycled products and commodities. Tin terms of end-users of who we send to, here is a never-ending demand for aggregates, copper, steel, other metals, road base, good soils and other construction commodities. Simply put, the 10 to 15 customers who buy our end products has an insatiable thirst for more material and recyclables than we could ever produce. Commercial and Residential Demolition and Excavation Services are more straightforward and need less of an explanation then the landscape materials and recycling company just described. Demolition and excavating are the oldest and original services of our company and we have an excellent history and reputation among hundreds and hundreds of construction companies. In terms of our track record, we have completed approximately 10,000+ individual projects in our history and have never missed the mark or left a job without exceeding the customers’ expectations. If it wasn’t done right the first time, we ALWAYS made it right 100% of the time, we have never had a bond called or a complaint filed against us that we were found of any wrongdoing. Diversified for all economies: It’s important to know that we are diversified in the services we provide for any economy. When new construction slows down and there is less work to be done, it has always been the case that high-end neighborhoods in the Denver Metro area have valuable land with homes that need to be demolished and new foundations that need to be excavated. This has been a constant in good and bad economies. We have the finest reputation in this niche market for turnkey services related to demolishing a commercial building or home, hauling all the material away, digging a new and larger foundation, and completing the sewer and water hook-ups, which is all the services in this phase of any construction project. Simply put, we have the finest reputation for completing jobs and exceeding expectations, we have the best equipment and the best equipment operators and laborers in the industry. Again, you don’t cash flow $2.3M on sales of over $7M if you don’t know what you doing. We Turn Down Tons of Work: Again, the business has been 100% absentee-owned, at least from a standpoint of the owner serving in a position of business development or traditional management/oversight. Basically, the owner has spent many years in the field operating a piece of equipment, literally. However, it is clear to key management that a new owner could double the excavating revenue immediately with the work that is already being asked of them that they currently turn down. More specifically, the company has all of the excavation, and to a smaller extent, demolition work they could possibly handle starting immediately. The general manager has claimed, “that they turn down just as much work as they accept”. All the new owner would need to do is to hire more workers and the work is sitting at our front door to go right to $10M in sales. As stated below, we have well-over $5M in solid and well-maintained equipment, and the new owner would not need another machine, truck or piece of iron, to go to $10M as we have everything to handle the increased workload. And as stated above, in almost all cases we don’t even have to bid for this work or compete for it, it is sitting at our door and we just need to price the work, submit a quote, and in virtually all cases they sign off on the job. Over $5,000,000 in Newer/New Equipment: The seller spent over $3,000,000 on new equipment in the past few years alone to maximize depreciation ($3.9M for those 2 years) to cut taxes and buy enough equipment to be able to double the gross sales immediately. The general manager of the company has stated clearly that, “going forward, starting 2019-2020 the new owner can increase sales to $10M in sales, and triple cash flow to $3.5M now that we have all equipment needed for this production level. Only 2 years ago, we would have been maxed out at about $7M with the equipment we had. You will Need about $150k in Working Capital: the seller is taking the $1.1M in cash on the balance sheet and all AR and will pay off all APs. Again, 100% of all debts will be paid off at closing. The new owner will need about $150,000 working capital to take over and grow the company. Also, as stated there is more than enough equipment to grow the business to over $10M ASAP. We Have No Real Competition: There are really only 1-2 other companies that do what we do and have the equipment and skilled workers to handle these often-delicate jobs. Part of the reason we have at least 3-$4M of additional work sitting at our door that we take a pass on at any point throughout the year is that we are the best on our market at what we do and we truly are one-stop shopping, which is beneficial to our customers. The Ownership Transition: In terms of this business transaction, we envisioned that the new owner would create a new role of sales and business development, which we have never had. We have everything in place to grow to $10M-$12M, we just need more sales in the existing market by simply taking on more of the work that is being asked of us that we turn down. The new owner will require no specific construction experience since our workers know how to run themselves. However, it is encouraged that the new owner should take the time to be a full-time, hands-on manager/operator (at least for the first year to learn the business). He/she should have good management skills. The seller wants to find someone to take the business to the next level. There Are No Negative Disclosable Items: The company is in excellent standing. There are “no ghosts in this closet”! As stated above, after completing over 10,000 jobs we have NOT had 1 complaint for unsatisfactory work that we did not immediately fix on our watch and our dime, we have never failed on a job. We have had 1 legal battle in the past 10 years, it went to trial AND WE WON THE CASE. Other than that, we have had no lawsuits, or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas. Licenses and Permits: Initially, the new owner needs no specific licensing or permits in Colorado, the company has all licenses needed to operate going forward. However, within the first 1-2 years the new owner would need to transition the licenses to themselves, but the seller will keep his license active for the company until this transition is complete.

2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.
$2,400,000Cash Flow: $1,100,000Seller Financing
2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.2018 Cash Flow $1.2M on $5.2M in Sales, Stucco/Exteriors Biz.

Denver, CO

2018 Cash Flow over $1.2M on $5.2M, Includes Over $850K in Assets Debt Free, Just $1.7M Down at Closing. The seller will carry $700,000 of the $2,400,000 sales price. Therefore, he expects just $1,600,000 down at closing and the rest will be paid through the future income of the business. Also, the buyer gets over $850,000 in assets debt free. Located South Central Denver. The deal includes approx. $450K in accounts receivables/cash and $200k in assets/inventory completely debt free. We are a large $5M/Yr. (2018) Commercial Stucco, Stone and Masonry Exteriors company for sale. (We do mostly multi-family housing condo and apartment complex work.) The Sales Price of the company is $2,400,000 but the seller will carry up to $700,000 of that sales price for 3-4 years for a qualified buyer. This business will qualify for an SBA loan, but the buyer must have at least $600,000 of their OWN liquid funds available to put down. 2018 Cash Flow expected to be over $1,100,000 on sales of close to $5M 2017 Cash Flow was $673,915 on sale of $4,155,681 2016 Cash Flow was $535,273 on sales of $3,391,178 Ask for all company financials for the past 5 years including tax returns. The sale includes ½ of all accounts receivables (about $600,000), $25,000 in cash, and over $200,000 in assets, vehicles, and state-of-the-art equipment to perform all forms of work. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE. This totals about $825,000 in assets. Please see the comprehensive list of all vehicles, equipment, and values for each piece in the data room below, which also contains the last 4 years of company financials and tax returns etc. The seller will stay on for 3-4 months (or however long the buyer wants) to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward. Critical Points to Understand: Reason for sale: After 25 years of working, the seller is moving out of state and wants to take a break. The (new) owner will cash flow over $1,100,000 in 2018. The seller seeks $1,700,000 down at closing, and the sale includes over $625,000 in assets at the closing, completely DEBT FREE. The seller is carrying almost 100% of the goodwill, blue sky and the intrinsic value of the company. The balance of $700,000 will be paid through the cash flow of the business over the next 3-4 years. The new owner will need NO working capital to take over and grow the company starting day-1 simply because the seller is leaving behind about $600,000 in “current accounts receivables and $25,000 in cash. Normally, when someone buys a company they need to take out a $500,000 line of credit or have $200k-$300k cash infused to run the company or perhaps $500K or more to hire more people to grow the company out of the gate. Not the case here, since the seller is leaving this level of working capital and NO DEBTS at all. The owner has held the company back and has always been content with $500K-$600K in annual cash flow. Please see the video above where the seller states that they turn down more than “1-2 X’s what they take on at any time”. stated differently, if the new owner wants to take on $10,000,000 in work in the next 12 months, it is there for the taking. “Denver has been a hay-day for the past 8-10 years, and there is no end in sight”, the seller states. Our customers are constantly pushing us to take on more work and do a wider variety of the work that we now do NOT do, such as masonry, stone, block, metal panels, and siding etc. We pretty much just do stucco and some small-scale stone work. Last month we turned down a highly-profitable $11M job that was handed to us. We hand off this work to other contractors all the time. Our existing and long-standing customers love our incredible quality and reliability, that they are really pushing us to be “one-stop-shopping” for them, vs. having to work with 2-3 different companies for their siding and exterior work. There Are "NO" Negative Disclosable Items: Representations and Warranties of the Company's Overall Standing. The company is in excellent standing. There are “no ghosts in this closet”! As stated above, we have NOT had 1 complaint about work completed that we did not fix and we have never failed on a job in any respect. When something has gone wrong in the past or wasn't done correctly, we have fixed it on our watch and our dime. 100% of our customers have been completely satisfied in every respect. We have had no legal battles or lawsuits or pending violations of any sort. We have never had an OSHA violation. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. We take worker safety very seriously and the seller is 100% committed to signing for Reps and Warrantees that provides for a solid protection of the buyer in these areas. We do: Commercial Stucco & Stone, Residential Stucco & Stone, Construction Defect Repair, New Stucco Installation, ½” & ¾” Stucco, EIFS, Synthetic Stone. In recent years our average job is about $200,000. We have don many jobs in the $500,000 - $1,000,000 range. Very few companies have the history, trust, and experience to be awarded jobs of this level. It took years, but we have earned the great spot we are in. In fact, a great portion of the work we do these days we do not have to even compete or bid for. It is ours to have, it is negotiated work. This means we submit an estimate and it is almost always granted to us assuming we don’t gauge We have exceptional in-house teams who specialize in construction defect repair, new stucco installation, EIFS, and synthetic stone. We hire trusted subcontractors with whom we have established relationships, ensuring they are vetted, insured, and aligned with our mission. There is no “seasonality” or substantial monthly sales and cash flow swings. It is hard to believe that even though we are a construction exteriors company, you would think we are somewhat dormant in the winter months and thrive during the 8 warmer months, that is NOT the case at all. We work all-but 7-10 days a year. In short, our November – March monthly sales and profits are roughly the same as the other 7 months of the year, and it has always been this way. Finest Reputation: In terms of quality of work, we have the finest reputation and strongest working relationship with all contractors and customers. We always meet or exceed the specifications for each job. We have a BBB rating of “A+” and have NEVER has 1 complaint filed. Our website is only 2 weeks old, meaning we cash flowed $673K last year and will do over $900K cash flow this year without any form of past web presence. A new owner can really bring our company into the 21st century with better branding, web and social media presence and overall business professionalism to bring the company to the next level. Diversity of Customers: We have no “customer concentration” problems, meaning not 1 of our customers is greater than 10% of our gross sales. A quick look at our accounts receivables report in the above data room shows that we don’t have “too many eggs in 1 basket”. When we DO have 15%-20% in a given customer work, please understand that is because we have a big job going with them. However, we don’t have the same big customer each year – it changes each year. This ensures we are never vulnerable to losing a lot of sales because 1 -2 given customers slowed down. In short, we have dozens and dozens of different contractors/companies who love working with us and the work we do, and many other sources of revenue and customers in our mix. Wow!! After 23 years in business, BBB Accredited and “A+” rated AND Gold Star Status. We have "0" complaints. See link below Our Great Employees: we do use some level of sub-contractors during busy times, however, in general, we have 42 great employees to ensure the finest quality work over the years. Most of our competitors exclusively use sub-contractors to do all fieldwork. The problem with this is obviously is maintaining quality for the customer, but just as importantly, how can you be sure the subs will be available to perform on a given job to get the job done on time? We have the best office and field workers in the business and the average tenure 10-15 years. In short, we never lose workers because they are paid above-market wages and they love what they do, it’s that simple. New Owner Skills Needed: The new owner will require no specific construction experience since our workers know how to run themselves. However, it is encouraged that the new owner should take the time to be a full-time, hands-on manager/operator (at least for the first year to learn the business). He/she should have good management skills, know how to work with people, be highly motivated/high energy, strong with financials, be aggressive in general, and want to grow the business going forward. The seller is very desirous of finding someone to take over the business and take it to the next level, where it is projected to go. The Ownership Transition: The new owner does not need to understand the bidding process or even be able to create bids, since we already have a great estimator that’s been with us and secures all our work. Good news, we have already identified an excellent replacement for the owner, he is a subcontractor of the Company for many years and has an excellent ability to run the field and all the workers. Moreover, he is very well known in the labor market/field in this industry and will be able to bring on as many workers as the new owner will need as they grow the business and even double or triple the gross sales in the next several years. Simply put this new field manager/foreman can get all the workers needed to grow the business as fast as it grows. No sales and marketing efforts: The sellers have made absolutely NO efforts to grow the company in the past and have been handicapped by having NO sales and marketing employees to assist in bringing in new business. The sellers are 100% confident that a new owner can double the sales and triple the cash flow in 2-3 years with new sales and marketing efforts. Or just take on more of the work that is being asked of us already as mentioned above. YOU MUST SEE THE 45-MINUTE-LONG VIDEO DETAILING ALL THESE POINTS. IT IS IN THE DATAROOM LISTED ABOVE ALONG WITH THE PAST 5 YEARS OF COMPANY FINANCIALS. In short, this is all a new owner would need to do to double the sales and cash flow. A new owner could pursue this effort or simply take on more work from existing customers that are being asked of them currently, or preferably do both. A New Owner Could “Easily” Double the Sales and Cash Flow Within 2-3 Years: It is a “hay day” in the Front Range of Colorado. The entire metropolitan area ranging from Fort Collins all the way down to Pueblo Colorado is nothing short of explosive growth and is one of the top 3-5 metropolitan areas in the United States for growth and expansion. Please see the articles below or any articles you can Google would indicate we are in the top 5 metropolitan areas on a consistent basis over the last 4-6 years. As a result, there is all the work you want from our customers as well as many other customers that call us on a regular basis that we turn down because we are simply saturated with our current workload. The seller has gone on record in the video enclosed, clearly stating that a new owner could very easily double the sales, gross profits and net income over the next 2 to 3 years and would only need desire to grow, dedication and perseverance. It is likely the new owner would need more workers, materials and other direct costs associated with the additional sales, however, with a very low overhead and debt free equipment, a tremendous amount of the incremental sales fall to the bottom line. Licenses and Permits: The new owner needs no specific licensing or permits, etc. The company has all the licenses needed to operate going forward. The new owner would be required to maintain existing city licenses Please email if you have any specific question(s), the path forward, or have potential interest in a phone call or face-to-face meeting with the owner/seller. The Big Picture: The Front Range, Colorado is the fastest growing city in the US. Denver is going CRAZY! Simply put, Denver and the entire Front Range of Colorado is nothing short of the fastest-growing areas in the US. The macro story for construction and overall growth is extraordinary and has been this way for the past 5 decades. Ever during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the US and in the past 3-5 years had exploded forward faster than almost every other major city in the US. Colorado is the best State in the country to own a business and is the "#1" fastest growing and strongest economies in the United States, per Money.MSN and Business Insider in September 2014 article. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation, and exports. Also, Area Developers Magazine ranked Denver the #1 growth opportunity in the country in 2015-2017. Colorado is #1 for Economic Growth in the US says US News and World Report ahead of New Hampshire and Minnesota. https://www.usnews.com/news/best-states/rankings http://denver.cbslocal.com/2017/02/28/colorado-economy-u-s-news-and-world-report/ http://www.metrodenver.org/research-reports/economic-forecasts/2017-economic-forecast/ http://www.denverpost.com/2016/12/05/colorado-economy-growth-2017/ https://www.bizjournals.com/denver/news/2017/02/02/colorado-ranked-among-the-top-states-for-1-year.html https://www.bizjournals.com/denver/news/2016/12/20/colorado-in-the-top-10-for-population-growth.html http://www.denverpost.com/2016/05/19/colorado-population-growth-far-outstripped-new-housing-census-says/ https://www.usnews.com/news/best-states/articles/2017-02-28/attracting-young-skilled-workers-drives-a-states-economic-growth The Denver-Aurora-Broomfield metro area was also rated first among the 375 metros. Here is Area Development's top 10 U.S. "Leading Locations" for 2016: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin


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