Excavation and Concrete Contracting

This excavation and concrete construction company serves the commercial and residential markets. They specialize in constructing home pads, utility trenching and grading services, and installing septic systems. It is a profitable, reputable, and successful operation with a proven track record and a loyal customer base. Revenues and profits are growing without any substantial marketing or sales effort. However, the Seller was in a major non-job related accident resulting in a requirement to relocate. The staff is experienced and is loyal to the company. They have minimized industry-normal lay-offs, thus ensuring a skilled workforce with relative longevity. The owner is in a position to allow his staff to maintain day-to-day operations, while concentrating on customer service needs. They own $509,600 of large excavation equipment which is well maintained. This equipment is specific for excavation use in the Central Oregon environment (lava rock, sand, etc). Much trial and error was involved in deciding on the equipment best suited for the type of work they do and the locations in which they do it. This saves a Buyer the wasted time of purchasing, evaluating, and assembling the necessary equipment and the wasted expense of inappropriate equipment purchases.

Facilities: The Seller owns the fenced 35,000 square foot industrial zoned (M-2) lot that they currently use. The Seller is willing to lease the facility for 5 years with a 5 year option. The approximate market value of this lease is $3,000 per month. This lot provides room for expansion and is visible from the main thoroughfare. The Seller is constructing a new shop/office building which is scheduled for completion in 2006. The new shop is planned to have a 40 x 65 bay for maintaining equipment (2,000 sf) and an additional office area (1,200 sf). Parking wi

Competition: Currently, demand for excavation services in the area exceed the supply of qualified excavation contractors, thus, reducing competitive concerns. They are often the highest bidder, but they frequently win these bids because of their reputation and prior service quality.

Growth/Expansion: Service Expansion. The current business could be an excellent platform to develop into a General Contracting business. Excavation is typically the most difficult component of the development process to complete in a timely manner. By adding framing, masonry, and expanding their current concrete contracting, the Seller could greatly expand their revenue and profit potential. Project size. The Seller has continuously increased their project size and they are potentially capable of bidding and bonding larger projects in the $400,000 to $500,00

Financing: Available to qualified buyers

Support/Training: The Seller is willing to provide training for four weeks from the close for up to six hours per day at no charge. The Seller is also willing to continue assisting the Buyer on a fee basis after the initial four weeks of training is over. The Seller is willing to negotiate a non-compete agreement.

Reason Selling: The Seller has medical problems that necessitate a move to a warmer climate.