Concrete Contractor

Location:
Michigan
Established:
1996, S-Corp
Gross Revenue:
$3,259,614
EBITDA:
$413,255
Employees:
6

Real Estate

$800,000

Accounts Receivable

$700,000

Government Contractor

MDOT Certified, Woman-Owned Business

Summary:

A local concrete construction market leader, the Company specializes in concrete construction, excavation, underground utilities, and site contract work projects. The Company has completed numerous notable projects in the Metro Detroit area while primarily servicing the government, private, and competitively bid public sectors. The Company has a strong financial history and consistently produces healthy cash flow results. Company is owned by husband and wife (51%) and (49%) stake. As a small market player, they offer the same specialized services as larger conglomerates at a superior quality level while also providing a more personable customer experience. Unlike many of its competitors who rely on contractors and outside labor sources to complete a large portion of their work. This company completes the majority of its projects with in-house labor, ultimately resulting in higher quality work. The Company follows the industry-standard bid process to win most of its jobs. They have become a preferred contractor for the Michigan Department of Transportation (MDOT) and other government agencies by consistently completing their jobs on time and within budget. While it offers a wide range of specialized services, the Company derives most of its revenue from concrete and asphalt work. A smaller portion is attributable to excavation, underground utilities, site restoration, and boardwalks and landscaping.

 

Advantages:

● Significant barriers for companies that do not already have established processes in compliance with these standards.

● The Company has the opportunity to become a multi-tiered concrete contractor that is more resilient to macro-related economic changes because of its diversity in operations.

Growth Positioning:

The ability exists to improve upon the Company’s top and bottom lines while simultaneously diversifying its service offerings through further expansion into commercial projects. A. Penetrate New Markets B. Increase sales force C. Expand geography Through hiring experienced sales staff and augmenting the Company’s current sales initiatives. Bringing on personnel solely focused on sales increases the likelihood that the Company will find new, creative ways to market itself and develop its pipeline. Currently, sales initiatives are split between Ronny and Mario. However, it is neither of the Owners’ center of attention as they have other important aspects of the Business to concentrate on. This shortage of attention can be remedied through the addition of new team members focused on sales.

  • Hire additional estimators to increase bidding
  • Hire Sales Agents
  • Hire PM’s

 

Marketing:

  • The website can be improved.
  • IT can possibly outsourced

 

Bidding software used:

AASHTOWare

Bid Express

FieldManager

Reason For Selling:

Retiring

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