Florida’s Specialty Underground Utilities & Excavation Contractor
| Cash Flow: | $394,000 |
| EBITDA: | $294,000 |
| Gross Revenue: | $1,200,000 |
Founded over 20 years ago, the Company is a statewide licensed underground utilities & excavation contractor. The Company’s key offerings are earthwork (excavation and embankment), pavement (asphalt), utilities (stormwater, water, fire line, and Sanitary Sewer), erosion control, and dewatering on civil engineering projects for federal and state governments, and some commercial projects.
The Company carries the following designations: DBE (DOT), SBE (Federal Government, South Florida Water Management District) MBE (State of Florida), MBE (others) – management estimates the special designation of SBE is responsible for 30% of revenue in 2022 and about 90% of revenue in 2023.
INVESTMENT APPEAL
Outstanding Growth Opportunities: Several opportunities exist for the Company to significantly increase revenue and profit, including leveraging the Company’s proven reputation to pursue and penetrate new and existing markets. The Company is currently generating 90% of its revenue through its special designation status of SBE. These opportunities are easily attainable, and expendable given the appropriate investments in capital and human resources.
Local & State Government Investment: The Construction sector derives a substantial portion of revenue from services provided to the public sector. As local and state government investment increases so does demand for construction services. Ongoing, and often noncyclical, investment in public works projects including roadways, utilities, museums, courthouses, police stations and recreation facilities all drive demand. Local and state government investment is expected to increase in 2023 and next few years, representing a potential opportunity for the sector.
High Barriers-to-Entry: To compete in the market, new industry participants would require advanced technical knowledge, significant investment in real estate and equipment, and strong customer relationships. Without prior involvement in the industry, new entrants would face significant hurdles in developing a meaningful share of industry revenue.
