Cash Flow Strong Construction Consulting Services Firm

Seller Financing Available

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Asking Price:$4,060,000
Gross Revenue:$4,100,000
FF&E:$85,000
Cash Flow:$1,310,000
Inventory:$300,000
Established Year:2004
BUSINESS DESCRIPTION

This well-known Construction Consulting Services Organization, located in the Northeast, consists of construction, scheduling, engineering, and architectural professionals. The firm provides services in construction management, owner’s representation, CPM scheduling and cost controls, pre-construction & risk analysis services as well as dispute resolution and litigation support. The firm enjoys strong operating margins, documented profitability and significant owner benefit.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 3.7x EBITA (ttm). A full valuation report is included and there is $300,000 in Net Working Capital plus another $85,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain over $510,000 benefit in after-acquisition- debt cash flow in Year #1 – close to 64% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)


DETAILED INFORMATION
Inventory
Included in asking price
Employees
15
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
This business currently operates from a conveniently located 6,000 sq. ft. leased office.
Competition
The company enjoys a strong competitive advantage in the Northeast Region through its reputation and long-standing relationships with contractors, building departments, agencies, designers, and consultants. This includes successfully projects with both private clients and major public agencies (qualified vendor).
Growth & Expansion
It is projected that a new owner will obtain significant additional growth by investing in the sales efforts in existing geography as well as expanding business development in a wider territory. The Company projects an annual revenue growth rate under such premise of 20%+ per year with high gross margins with a minimal investment of $150,000.
Financing
$0.8m Seller financing plus $2.5m Bank financing subject to buyer qualification
Support & Training
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
Reason for Selling
Retirement (consulting available)
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Achim
Neumann
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Achim Neumann