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Business for Sale: Environmental Contractor - Environmental Services

Posted by Generational Equity in Dallas-Fort Worth-Arlington, TX on Apr 19, 2010

Environmental Contracting Services

Consistent, strong historical sales growth increasing from $6.5 million in 2005 to $8.7 million in 2007.
80% repeat business.
40 active accounts
Growth opportunities already identified, in both the public and private sector Well established, strong relationships with existing suppliers.
The Company’s key management members have over 80 years of environmental regulatory, contracting, and science experience.

Our Client, organized as an S-Corp in 1992, is an environmental contractor that performs a variety of services ranging from one-time, simple site assessments to large multi-phase remediation and development projects. For over a decade, they have offered a diverse range of environmental and site construction expertise as well as a variety of state-of-the-art technologies for site assessment, remediation and property development, coastal restoration, and environmental drilling as well as general construction. The Company owns the necessary equipment needed to perform the offered services including drilling rigs, excavators and loaders, off-road trucks, dozers, boats, a variety of trucks and trailers, and other equipment. In 2007, coastal restoration accounted for 87% of revenue, although in previous, more typical years, site remediation made up 60+% of sales. The current customer base is comprised of 40 active public and private sector customers, with the top 2 each accounting for 30+% of revenue in 2007. Marketing is accomplished through website, referrals, and repeat business. The Company services a 4 state area, with the majority of sales coming from the home office state. It is wholly owned by one principal who is active in the business operation. The owner is assisted by 21 talented, innovative, and resourceful employees who handle field and office operations. Business operations are conducted out of a leased office/shop/warehouse totaling 12,430 square feet located on 3.5 acres of land owned by a related party.

(Financial Summary Below)

Who should buy this company?: Our Client represents an excellent opportunity to purchase a solid environmental contracting company with an excellent income history and solid reputation. This Company will be attractive to buyers seeking to establish a foothold, or increase market share, within this market segment. Additionally, opportunities exist for the Company to significantly increase revenue and profit by leveraging the Company’s reputation to pursue new and existing markets with public and private sector projects already identified,. These opportunities should be readily attainable given reenergized management combined with the appropriate investment of capital and human resources.

Financial Summary: The Company projects lower 2008 revenues due to the completion of a large scale wetland mitigation project and the delay of funding for certain coastal restoration projects. However, EBDITA is projected to increase due to the focus on highly specialized work with high profit potential. Between 2008 and 2013 sales are projected to grow by an average of approximately 14% annually to reach 11,000,000 by the end of 2013. Annual EBITDA is projected to be between 23% and 24% of sales during this period of growth.

The Company is on track to meet its 2008 projections with sales in the first four months of $2.1 million and EBITDA of $624,000 (30% of sales).

For additional information regarding Client #52724, please contact Generational Equity at www.genequityco.com or call Generational Equity at 877-213-1792.