Denver Well Established Demolition and Concrete Saw Cutting Company

The 2022 revenues were 3.9M with earnings of 1.36M

Growing at an average of 25% per year. 90% of revenue is recurring or referral based. They get most of their business from general contractors that are remodeling commercial spaces. There is a lot of demand for their specialized business which means that the business should not change after the sale. This is also high margin work.

They offer demolition, slab sawing, wall sawing, core drilling, flooring removal, floor prep, floor grinding, interior structural demolition, surgical demolition, and high-volume demolition. They work slab on grade, suspended slab, roof penetrations, and wall penetrations, all of which can be cut precisely. Typical projects are the repurposing of a commercial, industrial and/or retail building whereas the new floorplan requires some sort of changes including but not limited to relocating the utilities. This is common for almost every type of space. This will consist of demo and removal of all types of material.

Their equipment ranges from handheld equipment to various powered equipment for different project requirements. The have gasoline, diesel, hydraulic and even electric so they can still do the work if there are specific exhaust requirements. Having multiple options in emissions and size, made it easy to adapt to every challenge. The company has invested not only in being able to provide their own power but also in the size of the equipment.

The team consists of mostly long-term, highly skilled employees who love their jobs and are paid very well. The company has over 17 employees in 2023.

The company has a great reputation as proven by a 5-star Google Rating and very low modification rating for their workman’s comp insurance. This company’s ratings are valuable to the new owner both for marketing and for hiring.

The owner maintains a 40- 50-hour work week. He is selling to move into different ventures from demolition and saw cutting. He wants to focus on different aspects of life in a much slower pace. He is willing to offer a full transition with restrictions, to make for a smooth transition. Buyer will get assets currently valued at more than 1M.

Location: Denver Metro Area

The Sales Price is 3.5M which is a great price for a company with 90% recurring revenues, 5 star Google Rating, ability to add and keep skilled labor, 1M in assets, and a 30% net profit margin.

This is an LLC and therefore, the sale will most likely be an “Asset” purchase. It is priced as an Asset Sale which means that the business will be offered with the Seller keeping his cash, AR, and will be transferring the business debt-free. This should qualify for an SBA bank loan for a qualified buyer.

Details:

The company has a 90% recurring revenue, an impressive website, very skilled and happy employees, and a lot of specialized equipment some of which few of their competition has which are all reasons that this business should not change the day after the closing. They currently have a normal amount of work in progress, a backlog, and turns down jobs. 2023 should be equal or better than 2022 as they have increased their pricing.

They have a great reputation for the quality of our work, dependability, accurate bidding, and for fair dealings. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) and no legal battles. They have a workman’s comp MOD rate of .78 which is very low. This is a clear indication of how well run their business model is.

Growth Opportunities: The work is available. Add employees, expand into high demand areas like roads and highways, accept more workload that the current owner has not been willing to take on for quality of life reasons. The new owner can add a manager and grow while maintaining his/her quality of life.

The company location is leased with a more than 5,000 square foot building with four high bay garage doors, and more office space than they currently use, a common area, on almost a full acre property. The property has 3 containers on it for extra storage. The lease will be $11,170/mo. The business is in a great location. There is a 10-year lease with 6 years left ending in 2029. The landlord would prefer a longer lease with the new owner.