40 Y/O Southwest Pavement Preservation Company
Company-Owned Fleet, Strong Reputation for Quality Work, High Growth Market
The Company focuses primarily on the application of pavement preservation material which became popular as a road maintenance process in the 1960s. Another application process was first introduced in the 1980s, making it an established road resurfacing technique.
The market for pavement preservation treatments is growing every year. Their major metropolitan area in the Southwest is an advantageous location, because urban sprawl supports ongoing road maintenance needs in the future.
The Company has a consistent, stable and diverse customer base that includes city, county and state governments with contracts ranging from three to five years.
Based on a strong reputation and track record of quality work that is on-time and on-budget, there is significant upside for an ambitious operator, especially as the markets for pavement restoration continue to grow in the service area.
The business model is established, as the Company has been a respected member of the greater metropolitan area construction industry community for over 40 years. The Company has a lean management structure and builds out work crews based on business volume. There is substantial financial upside possible by adding crews to absorb added business volume.
80-90% of the Company’s revenue derives from government contracts and 60% of which are multi-year agreements. The Company saw 35% in YoY top line growth between 2019-20. Audited financials reflect consistent, stable revenue and profitability with strong cash flow.
The Company has a highly experienced management team, stable operational systems, and proven processes that will make a seamless transition to new ownership.