Civil Engineering Practice Focused on Wastewater & Disaster Area Rel

Seller Financing Available

Civil engineering firm focused on waste water and disaster relief for
suffering communities! Roughly 50% of the work they do comes
from infrastructure grants, and 50% comes from referring
engineering firms who lack the expertise in this niche of water and
wastewater management. The firm does not bid to gain or win work;
rather they have a niche in grant application processing. Their team
of 11 consists of 2 Licensed Engineers, 5 Non-Licensed Engineers,
and 4 in administration. They work out of a 2,600 square foot office
space and have the necessary resources to accommodate their
operations effectively. They work closely with cities, counties, and
special districts to provide expertise in various aspects of
engineering related to water and wastewater systems. This includes
designing, planning, and implementing infrastructure projects such
as water treatment plants, sewage systems, stormwater
management, and other related facilities. They primarily serve the
Central Valley of California, including clients in Kern County,
Modesto, and Stockton. The current owner has decided to sell the
firm in order to plan for retirement. The current owner’s
responsibilities include general oversight with limited direct
interactions with clients. As part of the transition process, he is
willing to provide a training period of 1-2 years to ensure a smooth
handover of the operation. This will allow the new owners to
familiarize themselves with the business operations, client base, and
ongoing projects. In addition to the 1-2 year training period, the
seller has offered to carry 20% of the purchase price via seller
financing and an equity roll.
Priced at $7,000,000, this business is primed and ready for a new
owner to step in and enjoy a reputation that has been built over the
last 10 years. A 10% down payment of $700,000 returns $539,232 in
the first year after debt payments, which is a 77% return on
investment! The current owner provides light oversight, handling
hiring processes, and managing invoicing. These responsibilities can
be absorbed by the existing staff or delegated to new hires as the
business transitions to new ownership. One of the growth
opportunities lies in outsourcing the grant writing. With an increasing
demand for infrastructure development and maintenance, there is
significant potential for expansion in their area.