Construction Products Solutions Company
| Gross Revenue: | $23,892,000 |
| EBITDA: | $3,200,000 |
Description:
The Company is a diversified provider of construction product solutions, offering services in manufacturer representation, sales, logistics, marketing, and warehousing of construction products. The Company's operations also include manufacturing, domestic & imported product sourcing, and distributing surface protection, vapor barriers, concrete forming accessories, and specialized crawlspace liners, catering to both core and niche markets within the construction product industry.
Key Aspects:
• Revenue Growth: Combined revenue grew at a compound annual growth rate (CAGR) of 22.9% from 2021 to the trailing twelve months (TTM) ending June 30, 2024.
• Strong Financial Margins: Gross profit and adjusted EBITDA margins averaged 39.1% and 18.2%, respectively, from 2021 through 2023.
• Diverse Business Model: The Company combines manufacturer representation, wholesale distribution and manufacturing, and niche market servicing to maximize market opportunities.
• Extensive Distribution Network: Approximately 90% of product sales are managed by the Company's dedicated sales team, complemented by a network of 1099 independent sales representatives.
• Loyal Customer Base: The Company has an established customer base with approximately 80% of revenue generated from repeat customers, with no single customer contributing more than 20% of revenue in the TTM ending June 30, 2024, highlighting strong customer loyalty and satisfaction.
Opportunities:
• Enhance Market Penetration: Increase market penetration by targeting additional manufacturers and territories to enhance the Company's reach within the industrial and commercial construction supply space, leveraging its established sales and logistics infrastructure.
• Increase Sales Coverage: Implement additional traveling sales associates or independent sales representatives to cover more territories, increasing direct sales and customer engagement.
• Strengthen Regional Presence: Solidify the Company's presence in the Southeast US, and further expand into other parts of the country.
• Boost Marketing and Branding: Invest in marketing and branding across all entities to strengthen recognition in niche markets and establish the Company as a top choice for specialized construction and protection products.
• Develop Online Sales Channels: Build an online presence for direct sales of niche products to reach broader markets and direct-to-consumer buyers.
Headquartered:
• Southeast US
Current Markets:
• The Company primarily serves the commercial and industrial construction product and material industry in the US.
Real Estate:
• The Company operates out of a 55,000 sq. ft. office & warehouse facility and a 53,000 sq. ft. office & warehouse facility both of which are leased from an affiliated entity. The facilities will not be included in the sale of the Company, but management is open to entering into a long-term lease agreement.
Shareholder Ownership:
• The Company is solely owned by a single shareholder who is open to multiple deal structures to facilitate a transaction. The owner is willing to remain with the Company for a predetermined period to facilitate a smooth transition to new ownership.
