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Asking Price$1,350,000
Revenue$1,348,416 Established1966
Cash Flow$448,819 Employees7 full-time
FF&E$1,369,603* FranchiseNo
Inventory$343,622* RelocatableNo
Real EstateUndisclosed Home-basedNo
* Included in Asking Price
Using precast concrete they manufacture over $1,300,000 in products such as septic tanks, storm shelters, stock tanks, feed bunks, parking chocks, a variety of concrete pads, and custom tanks and vaults for residential and commercial customers. The company has the capability to set products weighing up to 24,000 lbs. The custom concrete mix (5000 minimum psi) is produced using a volumetric mixer. Much of the residential septic business is from homeowner’s need to refurbish their septic systems to adhere to new code according to Iowa Chapter 69 which requires updating a septic system prior to the sale of a home. It is estimated only 25% of the systems in Iowa now meet the Iowa code, leaving much room for continued sales of septic products.
Annually there are over 500 customers with the average purchase per customer being $2,500. Currently General Contractors and Real Estate Agents are a predominant lead source since homes that were built before 1991 are required to have an updated septic system prior to selling. An opportunity for growth is to pursue a referral network with bankers as well, since they aren’t able to loan on these older houses until the septic systems are in compliance with the new regulation. There is a laboring work force of 7 employees in place that the owner oversees while his wife handles all of the billing.
Strong established business partnerships and excellent reputation in over one quarter of the state, combined with high demand for concrete products give this business a competitive edge within its industry. Steady profit margin of 33% along with consistent gross sales reflect the strength of the business as an investment for a new owner to achieve growth and profitability.

Financial Overview
List Price: $1,350,000
Gross Sales
2014: $1,348,416
2013: $1,350,512
Owner Profit/Cash Flow
2014: $448,819
2013: $329,859
Profit Margin: 33%
Multiple: 3.01 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Price
$448,819 x 3.01 = $1,350,945

Assets Included in Purchase: $1,773,149
Equipment: $1,369,603
Trucks: $389,522
Furniture, Fixtures & Equipment: $26,006
Equipment: $954,075
Raw Inventory: $42,381
Retail Inventory: $301,241
A/R Included: $59,924
*amounts may vary
Business Information
Year Established: Over 50 years
Years in Business: Current owner since 2000
Location and Service Area: South Central Iowa
Products: septic tanks, storm shelters, stock tanks, feed bunks, parking chocks, a variety of concrete pads, custom tanks and vaults
Clients: Servicing both commercial and residential clients totaling over 500 customers annually with the average purchase price of $2,500
Facility: Plant occupies over 3 acres
Reason for Selling: Owner Retirement
Employees: 7 laborers that manufacture, pour the concrete, ship and distribute products to clients. Customers install themselves or hire a contractor to install
Seller Training Period: 6 months
Growth Opportunities: Develop new product lines and build referral relationships with banks
Current Owner’s Responsibilities: The wife completes all billing and the husband oversees the floor laborers
Facilities:Facility: Plant occupies over 3 acres
Growth Potential:Develop new product lines and build referral relationships with banks
Training/Support:6 months
Seller Financing:15% Seller Financing: $202,500
Sale Reason:Owner Retirement
Ad #78536
Seller Reference #MAN008
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Contact This Seller
Cortney Sells
The Firm Business Brokerage
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