West Michigan Ready-Mix/Concrete Products Manufacturer

Founded in the early 1970s, the Company manufactures and supplies ready-mix to customers throughout West Michigan. The Company offers ready-mix concrete, aggregate, crushed concrete, precast products, and septic tanks.

The Company derives approximately 75% of revenue from ready-mix, 20% from aggregate, and the remaining 5% from crushed concrete, septic tanks, and precast products. The typical customers for the Company are concrete contractors, farmers, individual buyers, and home builders.

The Company owns and controls its material supply, affording it operational synergies versus having to purchase materials from third-party vendors. It differentiates itself through the wide array of products offered. Rarely do competitors offer more than 1-2 products. 

The Company operates out of facilities owned by the same owners as the Business, under a separate entity. The three buildings include an 1,800 square foot office building with 1,200 square feet of office space and 600 square feet of storage, a 5,000 square foot maintenance building, and a 4,000 square foot precast/septic tank building. All buildings are maintained on a regular basis and are in excellent condition. The owners are open to selling or leasing the facilities and land to the new owner(s).

The Company is operated by two owners. Both owners are looking to retire. The owners are ready and willing to provide reasonable and ordinary transitionary assistance for new ownership.

Buyers will be required to have a minimum of $500,000 in available liquid capital, and preferably industry experience, to receive information about the Company.

The Company owns and controls its material supply, affording it operational synergies versus having to source material from a third-party vendor.

Additional Information

Real Estate: Owned—10,800 total square feet of facilities and 145 acres of land. The Owners are flexible to sell or lease the facilities to new ownership.

Total Building Size: 10,800 square feet between three buildings. The office building contains 1,800 square feet of space, the maintenance building contains 5,000 square feet, and the precast/septic tank building contains 4,000 square feet of space.

Facilities:  Three buildings total 10,800 square feet. The office building was completed in 1990, the maintenance building in 1994, and the precast/septic tank building in 2002. All buildings are in excellent condition.

Seller Financing Available: Yes

Seller Note: Limited Seller-Financing Available for Qualified Buyers.

Number of Employees: 16

Year Established: 1975

Support/Training: Ownership is willing to provide reasonable and customary transition assistance.

Reasons for Selling: The Owners would like to retire.

Investment Highlights

(1) Wide Variety of Services: The Company offers multiple products within the ready-mix/concrete industry. They offer ready-mix, aggregate, crushed concrete, precast products, and septic tanks. This variety of services offers the Company access to a wide array of markets and is a strong differentiator from competitors who typically specialize solely in ready-mix.

(2) High Barriers to Entry: The ready-mix/concrete manufacturing industry is capital intensive. The Company has already made all of the necessary capital investments to operate a successful operation in the industry. Between the investment in trucks, manufacturing equipment, and material supplies, a substantial investment is required to start a ready-mix business. The expensive up-front costs deter most potential start-up competitors. A key differentiator for the Company is owning its own pit. Operating a pit helps the Company reduce costs and save time because material providers are cut out of the supply chain. 

(3) Strong Performance Through COVID-19: The Company performed exceptionally well through COVID-19. The Company boasts a loyal and experienced workforce who were retained through the pandemic.

(4) Established Reputation for Quality: The Company has always placed an emphasis on quality products and service. The Company received an A+ grade from the Better Business Bureau. The Company also holds a 4.3-star rating on Google.

Growth Opportunities

(1) Maximize Plant Utilization: The Company currently outputs 150 yards of ready-mix per hour. The plant has the capacity to output 200 yards per hour, however, trucks and drivers are not in place to support this. By focusing on hiring additional workers and acquiring additional mixer trucks, the Company would be able to support the plant’s maximum output of 200 yards per hour.

(2) Increase Residential Work: The Company is geographically positioned to take advantage of residential growth within the M-37 corridor. A new owner(s) could target strategic relationships with residential home builders in this area to increase a recurring stream of new home build projects. Presently, the Company is not doing any type of home builder outreach. 

(3) Implement Marketing Strategy to Target New Business: The Company has been able to earn all the work it can handle without any marketing budget. All work has come through word of mouth from contractor to contractor. While the Company has done well without a marketing budget, with additions to the workforce and fleet, new ownership could build a website, maximize search engine optimization, and employ targeted marketing campaigns to bolster sales efforts.

(4) Expand Mining and Aggregate Operations: The Company owns 145 acres that are for sale with the Business, including roughly 40 acres of land with sand and gravel on it. A new owner(s) could take advantage of the resources at hand by increasing the count of employees working in the pit, maximizing gravel and aggregate sales.

The BEST way to receive confidential information about this opportunity is to fill out the form below.

Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this West Michigan Ready-Mix/Concrete Manufacturer for sale!

Financial Performance

  • Year End Mar 2020 Revenue

    $3,874,316

  • Year End Mar 2020 SDE

    $348,497

  • Equipment Value

    $2,740,800





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Calder Capital, LLC