Active
Specialty Construction Business For Sale in New Orleans Metro Louisiana
Duran Advisors presents this Specialty Construction Business For Sale in New Orleans Metro Louisiana. This company has been operating for multiple decades in an ideal centralized location. It is the most dominant player in its area for its work type. It is also an ideal strategic acquisition for a platform company looking for a turnkey add-on.
Full management is in place for the sale. The owner is selling to retire, and he is flexible on the sale structure. He is ready to exit right away, or he is prepared to assist on an ongoing project basis. Regardless, the owner will stay on as necessary to help transition the business and the relationships for a year.
The business owns a large facility with ample room to expand. The property is available for sale or lease to a buyer. It is valued at $700,000. A Matterport 3-D scan Virtual Reality scan of the premises is available for fully disclosed buyers. A 40+ page Confidential Information Memorandum (CIM) is available as well.
The business is a good candidate for SBA financing. The right buyer could put as little as 10% down and earn their down payment back in as little as six months! Come and meet the owner, visit the work site, and see this turnkey opportunity!
2022 EBITDA is $1,427,607, and 2023 is expected to be similar due to upcoming work
For serious inquiries, please call the listing broker, Joel F. Duran, CM&AA®, CEPA®, CMSBB®, at (504) 313-1038. The Real Estate broker for this listing is John Sanderford, who can be reached at (504) 321-0196.
Listed By: Joel Duran, CM&AA, CM&AP, CEPA, CAIM, CMSBB
Background information
Reference:
NOLA-0057
Year established:
1972
Reason selling:
Retirement
Finance
Sales:
$3,888,149
Profits:
$1,427,607
Profit type:
EBITDA
Operations
Employees:
Full-time: 8 Part-time: 0
FF&E:
Estimated to be 1,000,000
Inventory:
Estimated to be $500,000
Premises
Facility:
Purpose-built for the industry
Square footage:
41,075 sq. ft
Rent and lease terms:
Lease the property or purchase it for $700,000
Location:
Centralized in the primary market of operation
Opportunities
Growth:
Global revenue for construction work, including specialty contracting, exceeds $7 trillion per year and is expected to reach about $15 trillion by 2030, according to Statista. The top employers in the construction industry include the US, Japan, Russia, and Mexico, according to NationMaster. Most specialty contractors focus on a single local or regional market, but some large companies operate internationally. The US specialty contracting industry includes about 460,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $875 billion. Source: Dun & Bradstreet/M&A Source 8-29-2022
Market:
Companies in this industry contract to perform construction work in various trades, including site preparation, concrete, electrical, HVAC, plumbing, and painting. Major companies include APi Group, Comfort Systems USA, EMCOR Group, Performance Contracting, and Quanta Services (all based in the US), as well as Bilfinger (Germany) and Skanska (Sweden). New residential and non-residential construction activity, corporate profits and local government budgets drive demand. The profitability of individual companies depends on accurate project bids and efficient operations. Most specialty contractors earn revenues from fixed-price contracts, and companies must estimate project costs. If actual material prices or labor costs differ from the estimates and cannot be recovered through change orders, profitability could be reduced. Large companies have advantages in being able to offer a variety of services over a geographically diverse market at competitive prices. Small companies can compete effectively by offering niche services or by building relationships with customers in individual markets. The specialty contractor industry is heavily fragmented, with the top 50 firms accounting for less than 10% of the industry's revenue. The industry is highly competitive, and a single project may attract bids from many contractors. Source: Dun & Bradstreet/M&A Source 8-29-2022
Price and terms
Financing:
The business is a good candidate for SBA financing.
Training:
The owner will stay on as necessary to help transition the business and the relationships.