This opportunity is a commercial, industrial, and residential asphalt maintenance company for sale that offers a wide variety of services, including but not limited to asphalt seal coating, infrared patching, drain repairs, removal, and replacement of asphalt, crack filling, and striping. The Company’s primary focus is on servicing commercial customers, many of whom are recurring and maintain long-standing maintenance agreements with the Company.
The Company was founded in the 1970s by the current Owner. The Owner is actively involved in the Business, and the Owner’s partner is involved minimally on a part-time basis. The Company’s current leadership team has an average tenure of over 20 years, while the Company’s crew leaders have an average tenure of nearly 11 years. All the members of the leadership team, as well as crew leaders, intend to remain with the Business.
The real estate is owned through the Owner’s real estate holding entity. Located on the Company’s property are six buildings, all fully utilized by the Company for various purposes related to the Business’s operations. All the buildings have been painted within the last few years and are all structurally and visually well-maintained. The real estate has an estimated value of $600,000. Ownership is flexible regarding the sale or lease of the real estate.
Real Estate: Owned through the Owners’ real estate holding entity. Ownership is flexible to sell or lease the facilities to the new Owner(s).
2020 Rent: $120,000
Total Building Size: 17,600 square feet
Facilities: The Company operates out of facilities located on roughly one and a half acres of property. Located on the property is a collection of six buildings, which includes a combination of office space and garage space to store vehicles and equipment. Housed within the first building is approximately 500 square feet of office space, accompanied by a lunch area and gym space. The remainder of the buildings on the property are home to seal coating tanks, a sandpit, a hot water pressure washer, mechanical lifts, a paint prep booth, and open parking to store and service equipment and vehicles.
Seller Financing Available: Yes
Seller Note: Limited Seller-Financing Available for Qualified Buyers.
Number of Employees: 21 (including Owner)
Year Established: 1981
Support/Training: Ownership is willing to provide reasonable and customary assistance during the transition period.
Reasons for Selling: Ownership would like to retire.
(1) Brand Reputation and Recognition: The Company is well-known as an industry leader in the region in which the Company operates. For over 30 years, the Company has strived to exceed customers’ expectations. By satisfying customers time and time again, the Company has earned a reputation for providing unmatched quality and a seamless customer experience. Additionally, the Owner has created strong brand recognition by assembling a fleet of well-maintained, distinct vehicles, which the Company is known for.
(2) Recurring Revenue and Maintenance Contracts: A large portion of the Company’s revenue is derived from recurring customers; as the Company’s customers are routinely satisfied, they refuse to consider other competitors. Approximately 80% of the Company’s revenue is derived from the commercial segment, as commercial asphalt services require routine maintenance to prolong the surface’s life and limit the property owner’s liability, should an injury occur on an asphalt surface. Asphalt maintenance is a non-discretionary expense for property owners, so the Company strives to deliver perfection through each project to ensure satisfied customers come back every year.
(3) Equipment and Personnel: The Company is equipped with a substantial base of equipment and personnel. One of the Owner’s highest priorities is to ensure that routine maintenance is properly conducted on all equipment to prevent catastrophic failures. The Company has idle equipment not being utilized to its fullest potential at any given time, presenting a value-adding opportunity. Additionally, the Owner has worked vigorously to create a family-first working environment which has led to low turnover and an average tenure of 10+ years throughout the Company.
(1) Implementation of Customer Relationship Management (CRM) Software: The Company currently does not leverage any systems or automation to the Business’ advantage. Implementing a Customer Relationship Management (CRM) system could greatly benefit the Company by reaching out to new prospective customers and managing relationships with existing customers more effectively. Additionally, the Company could utilize a CRM solution to refine current marketing strategies and assist with converting prospects to customers. Many CRM platforms also offer data analytics and feedback, which could help the Company select market segments to target.
(2) Offering Snow Plowing Services in the Winter: Due to the Midwest’s four seasons and cold winters, the Company can only offer asphalt services typically 7-8 months out of the year. To increase revenue beyond current levels, new Ownership could expand the Company’s operations to include offering snow plowing services in the winter. Already owning a substantial equipment base, minimal capital expenditures would be required to prepare the Company’s equipment for snow removal. Additionally, snow plowing services could be easily offered to the Company’s current base of commercial customers, whom the Company works diligently with to maintain long-standing relationships.
(3) Increased Web and Social Media Presence: The Company’s website appears to be visually outdated and simplistic, with all the content currently located on one page. Expanding the website into multiple pages and revamping the design could increase the Company’s Search Engine Optimization (SEO), helping to push the Business higher up among search engine results on the Internet. Additionally, the Company could create and utilize social media pages to showcase completed projects and draw in prospective customers. Social media advertisements could strategically be implemented to target commercial and residential customers within the Company’s operating region and publicize the quality of the Company’s work.
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