HEAVY CONSTRUCTION FIRM
WITH EXPERTISE IN CIVIL AND UNDERGROUND UTILITY PROJECTS AND IN RENEWABLE
ENERGY & POWER SECTORS
Business
Description: Serving the Western United States, the
Company is growing rapidly and is well diversified in both the private and
public sectors, while establishing itself as a dominant player in the
fast-expanding, Renewable Energy Sector. It is also active in the power
industry, public works and site-civil residential work. This well-established
business has high year-over-year growth and is an approved supplier to key
government agencies. The business is split 50-50 between renewable energy and
mainstream construction.
Current opportunities
include large joint venture projects and increasing demand for wind farms.
Significant tail winds will spur continuing growth: Increasing demand for
renewable energy—currently an $800 billion market— points to decades of significant
growth. The FAST Act will increase federal funding for highway infrastructure
by 2.4% through 2020, and power spending, with wind as the fastest growing sector,
generates annual spending of ~$100 billion.
In January 2019, the
Company began a joint venture project valued at $36 million. In addition, the
Company secured a 12-year MATOC [master contract] for perimeter security
upgrades valued at $75 million. Upcoming projects already contracted show
multi-year growth, including a $20 million wind project and a $25 million wind
project to begin late 2019, and a $23 million substation project beginning in
2020.
Distribution: The Company secures
business primarily through competitive bidding, but its reputation and
performance provide a unique competitive advantage leading to repeat business.
Another source of business is its status as preferred vendor for a power
marketer.
Operational Strengths: The Company’s
significant growth is based on multiple factors: diversification in public and
private sectors, and its competitive advantage as i) a government approved
supplier and ii) registration as a preferred vendor for a large federal power
marketer. 90% of projects are from
previous customers that include major power companies and wind farms. Current
market demand gives the Company a strong pricing advantage. The
Company’s stellar reputation for quality and integrity creates demand for its
services, and because it excels in value engineering services, the Company is
able to win bids at premium rates. The Company has earned a reputation for a
commitment to cost savings throughout a project’s life cycle without
sacrificing quality. The non-union workforce and highly knowledgeable
operations and management teams operate independently without the need for
day-to-day owner participation. Bonding capacity at $50 million supports
current projects and future growth.
Transaction: The owner [S-Corp with
single owner] seeks to sell 100% of the business and is ready with his
management team to partner with the new owner to drive growth. Real estate is
available for purchase or lease. Owner will stay on for at least 1 year to
insure a smooth transition. Trailing 12-month figures through Q1: $31.5 million
Revenue and $8 million Adj. EBITDA.
Financial
Summary
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2019
Seller Forecast
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2018
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2017
|
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Revenue
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$36.9 mil
|
$24.8 mil
|
$18.6 mil
|
Adjusted
EBITDA
|
$11.9 mil
|
$3.1 mil
|
$1.5 mil
|
Other Highlights
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Location
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Financials
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Management Team in Place
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Years in Business
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SIC Classification
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Western US
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Reviewed
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Yes
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10
|
1611, 1623, 1629, 1794
|
Direct all Inquiries to:
Gottesman Company
Refer to: S-2942-1 JPN
Tel: 718-618-5346 UK Office: +44 (0) 7906786505
E-mail: dmj@gottesman-company.com