Issue link: http://deals.uberflip.com/i/1323283
Rapidly Growing & High Profit Margins Construction and Development Management Firm Located in Western US #61923 Sign NDA ► 2020 Revenue Est. $6,000,000 2020 EBITDA Est. $1,777,000 (29.6% of Sales) DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Don Ho Managing Director - M&A Email: DHo@generational.com Mobile: 972-740-9439 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX Fax: 972-392-1124 BUSINESS HIGHLIGHTS The Subject is a construction and real estate development company that offers a broad range of services to commercial customers. The Company has developed an enviable track record having completed high-profile projects in the hospitality, gaming, entertainment, food service, retail, and office sectors. The Company has a customer database comprising of major real estate development firms and well-known large commercial entities. The Company's differentiates itself by providing comprehensive project support and coordinates the efforts of architects, engineers, specialty trades/ subcontractors, and materials suppliers. My Client's capabilities include development management, Green/LEED construction, construction management, project management, and tenant coordination. INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 COMPANY STATS > Over 15 yrs of operations > US and Canadian Operations > S-Corporation (2005) > 28 FT & 4 PT employees > 4,500 sq. ft. Facility > Sole Owner with Stand Alone Management Infrastructure > Blue-Chip Customer Base > Impressive Project Portfolio INVESTMENT APPEAL • Competitive Edge — The Company has a competitive edge in the marketplace by coordinating the activities of the project team (including architects, engineers, contractors, and subcontractors). Additionally, the Company has generated significant repeat business because of the comprehensive support it provides to its customers. The Subject operates in niche and diversified markets, and has the ability to inject itself in all phase of the construction and development process. • Proprietary Expertise — The Company's management and key employees have extensive experience with real estate development and construction, in particular with large, complex projects. The Company has established a strong management team, who are capable of running the day-to-day operations on a stand-alone basis. • Integrated Services — The Company delivers integrated services to its customers including development management, cost consulting, project management, and full construction management. The Company strives to add value to customers by providing clear and transparent support and direction through the lifecycle of the construction process. • Strong Financial Performance — The Company's revenue increased from $2,538,000 in 2017 to $5,584,000 in 2019, reflecting a CAGR of 48.3%. Revenue for the base year 2020 is conservatively projected to increase by 7.4% to $6,000,000. The Subject's EBITDA increased at a CAGR of 69.7% from $528,000 to $1,519,000 during the historical period. EBITDA for the base year 2020 is conservatively projected to increase to $1,777,000. • Strong Growth with Virtually No Debt — The Company has historically grown the business with virtually no interest-bearing third-party debt. The Company's balance sheet also reflects a strong net working capital position. GROWTH OPPORTUNITY >Fragmented Industry Consolidation >Service Expansion >Develop Sales & Marketing >Geographic Expansion $1,228,000.00 $73,000.00 $73,000.00 $- Balance Sheet Current Assets Non-Current Assets Current Liabilities Non-Current Liabilities Base Year 2017 2018 2019 2020 2021 2,538 3,731 5,584 6,000 6,500 265.6% 47.0% 49.7% 7.4% 8.3% 2,011 2,753 4,065 4,223 4,368 79.2% 73.8% 72.8% 70.4% 67.2% 526 976 1,517 1,768 2,118 % of Sales 20.7% 26.2% 27.2% 29.5% 32.6% 528 978 1,519 1,777 2,132 20.8% 26.2% 27.2% 29.6% 32.8% 728 1,178 1,719 1,977 2,332 % of Sales 28.7% 31.6% 30.8% 33.0% 35.9% EBIT Owner's Cash Flow** % of Sales EBITDA % of Sales Adjusted Operating Expenses Total Sales % Growth