* Included in Asking Price
A premier General Contracting (GC) and Construction Management Company based in Maryland with operations spread across the Mid-Atlantic region and Florida. Founded in 1989, the firm specializes in small & mid-size Base Building work, Corporate Interior Build-Outs and Building Renovation work. The company has a diverse client base that includes numerous clients from Banking, Healthcare, and Retail industries.
Approximately 80% of the contract revenue comes from construction work in the Healthcare and Financial Services segments. The remaining 20% of contract revenue comes from construction assignments in the Assisted Living space. Due to a slowdown in construction activity in all major industries, the company’s order flows thinned down between 2011 and 2013. Order flows were further affected by a deceleration in the Financial Services space, which is one of the firm’s top client categories. A decline in the number of orders sharply affected company revenue during 2011 – 2013. As the U.S. economy has been stabilizing with construction activity gradually picking up, the contract revenue sharply grew at a CAGR of 22.8% during 2013 – 2015. The Company’s Contract Revenue stood at $16.6 million in 2015, and is expected to cross $22 million by 2018.
The firm has a presence in seven states – Maryland, Virginia, North Carolina, South Carolina, Florida, Delaware, and Washington, DC. The company is licensed to operate in these states through its five subsidiaries. Virginia and Maryland are the highest revenue generators for the firm, contributing 35% each to the company’s contract revenue for 2015. DC is the other major revenue generator with a contribution of 20% to the company’s revenue in 2015. The remaining four states jointly contributed 10% to the company’s revenue in 2015.
The company is well-positioned to expand its presence beyond its current geographies and is looking for a strategic acquirer that is interested in acquiring 100% equity stake in the business through an all cash deal or a combination of cash and seller financing. The additional capital brought in by the acquirer may be used for setting up fully staffed offices in multiple states and for developing business in those states. As a part of the transaction, the acquirer will also receive tangible assets, goodwill, and backlog. The firm is also open to an asset sale.
|Facilities:||The business operates from its headquarters in Maryland. The Company has three facilities in addition to the MD facility. These facilities are located in Virginia, North Carolina, and Florida. They have long term lease contracts for all its facilities and does not own any of these facilities.|
|Competition:||Standard competition in the market for the construction and commercial construction industry. Their primary competition largely consists of other GCs who bid for projects of similar sizes and scopes.|
|Growth Potential:||The business has a diverse client base that primarily includes clients from Healthcare, Financial Services and Assisted Living segments. On an average, the Company serves 30 to 35 clients each year. Their largest client accounted for approximately 19% of the Company’s Contract Revenue in 2016, whereas, the Company’s top 5 clients accounted for 54% of the Company’s Revenue for the year. A potential acquirer would be able to leverage the business’ rich industry experience, technical capabilities, strong brand name and customer orientation to gain a firm foothold in existing markets. The acquirer could also gain substantially by expanding its presence to additional markets.|
|Training/Support:||Owner will provide necessary training and support.|
|Seller Financing:||Available depending on final purchase price, terms, and qualifications of the buyer.|
|Sale Reason:||President of the company is retiring.|
Seller Reference #HZ277DZ
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