Today’s Business For Sale (No. 265): 57 YR Grading & Paving | $5.3M Cashflow Per Year

本站添加: 2026-05-05

[00:00:00]Established in 1969, today's boring business is a grading and paving company. The seller lists over $5 million in annual cash flow or just under half a million a month. Companies typically don't last 50 plus years by accident. Let's see how they make money.

[00:00:11]What does the company do? This company handles the first phase of construction.

[00:00:14]They're typically hired by developers building subdivisions or commercial projects. They take raw land and turn into build ready sites. Let's take a look at the numbers. The asking price is 15.8 million. For gross revenue, they do 24.3 million a year in annual sales. out of that 24.3 that generate 5.3 million a year in cash flow. At this ask price, the seller is looking for three times annual cash flow for the business. Given the asking price of 15 million plus, this is not an SBA deal. To buy something like this, you're typically looking at a lower middle market structure, which includes some combination of senior bank debt, equipment loans, seller loans, SBIC, or messdiven industry. This often goes to an industry buyer or someone with significant experience in the industry.

[00:00:50]Now, some items to note on the listing.

[00:00:51]The first is revenue mix. Residential subdivision work is 55% of their total revenue. The rest is in commercial and government, meaning they're heavily tied to housing. Second item is the assets listed. Mentions here is there's $6.5 million of equipment included in the asking price. Given the high amount, this can help with financing if you do asset back loans. Equally as important, given it's a big number, the replacement cost. How much capex is needed to replace old machinery? Now, some questions to ask in diligence. The first is cyclicality. Business like this directly tied to new construction. New developments slow down. This business typically slows down. Now, they've been in business since 1969. So, the seller's been through multiple multiple housing cycles and the business is still here.

[00:01:25]But as the new owner, you have to dig in more and figure out what that cash flow looks like when times get hard. Second one here is reliance on a single developer or concentration risk. The seller lists, they have a pipeline built out well into 2026. You want to check on the quality of that backlog, but also is it tied to a couple small developers or a single developer that increases your risk they walk away. That's today's boring business review. Follow along for more. And if you're looking for the listing ID, here it is to go after it yourself if you're interested. Reminder, this forformational educational purposes only. Please do your own research. You can lose more 100% of what you put