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20 Year Old Summit/Eagle Co CO, Asphalt Maintenance Co, Turn Key, Hundreds of Long Standing and Recurring Customers

ConstructionFor Sale in CO

Financial & Assets Details

$290,000
$140,000
$60,000
$10,000

About the Business

Yes
2010
5
$230
Yes

Business Description

Asphalt Maintenance Company Servicing the Central Colorado Mountains

This company protects, rejuvenates, and beautifies asphalt mostly residential driveways, commercial parking lots, and condo/townhome HOA’s
20 Year Old Location

2020 Revenues were 290K with 140K in Earnings. The Revenues and Earnings are almost exactly the same every year
This business only does the work from May to October. He makes 140K over only 6 months of physical work being done along with some of the estimating from his computer in the months leading up to the start of each season. Overall, he works a total of 7 months of the year and makes 140K. He works hard during the peak season which slows and then ends in late October. From November to April he doesn’t do much work except getting some jobs lined up for May and June but that doesn’t take much time since he can do the bidding right off of his computer without meeting the property owner. Plus, over 80% of the revenue is recurring jobs which is very valuable to a new owner. The owner is retiring from this so he can travel and fish more.
This business does not have a lot of competition. Almost 85% of the work is repeat jobs so most of his work is negotiated and not bid against competition. Most parking lots and driveways in the mountains are asphalt and not concrete because of the freezing/thawing cycle. Asphalt fades in color due to oxidation over time and even if it is still in great shape, most of his jobs are to put a new protective coating on giving it the beautiful finish.
The buyer will get approximately 60K in current value assets made up of 2 crack filling trailers, 2 Dodge Ram 2500 trucks, two large trailer mounted tanks with agitators, and various other equipment and tools.
He has hundreds of long-standing and recurring customers. Residential driveways need sealcoating every 2-3 years and parking lots every 3 to 5 years.
His crews clean and prep the jobs, crack fill as needed with a crack fill melting machine, and then squeegees on the sealer with a multi-application which produces a manicured finish different than the competition which typically sprays it on. The sealcoating is their main service/product.
This is a turn key opportunity which means that the owner will train the new owner on how to do everything the new owner needs to do right on his/her computer. He will also stay and transition the business for as long as the new owner wants him. The new owner can keep it this size with slow growth or grow the business in other mountain areas or even the front range including Denver.
Location: The new owner should live anywhere in Summit, Clear Creek, or Eagle County.
Sales price is 350K. This price is less than 2 1/2 times the earnings. Keep in mind that the owner of this company is only working 7 months a year. He will carry up to 10% of the sales price. He will be keeping his cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. It is an S so it can be a stock or an asset sale but it is priced as an asset sale. This business will qualify for an SBA bank loan and the SBA will pay the first 6 months of payments(5% of the purchase price) and is waiving their 2.5% upfront fee also. A bank will only require 10% to 15% matching from a qualified buyer meaning a buyer may qualify to buy this business with only 100K in liquidity..
Details:
§ Growth and Expansion: This is the best part. He does most of his work in a big resort town and surrounding area but is offered work throughout the central mountains of Colorado. He gets a ton of leads for other resort areas and town but he has not expanded there. He is married and just doesn’t have the time or want to but his services already generate a lot of demand from the website that he doesn’t respond to. The new buyer doesn’t have to do anything but set up a crew and equipment to start doing these jobs. A new owner can also start working at lower elevations in the late fall or early spring if he/she wants to expand the months in the year which works. In fact, the new owner could do work in Denver Metro if he/she wanted to. He could do a lot more business by just taking more jobs because he turns down jobs daily. The current owner loves the industry. He is excited to teach the new owner how to run and grow this business. This is one of the easiest businesses I have ever seen to grow by just expanding its coverage area by adding some equipment and workers but without having to spend a lot of money on advertising. He states that the demand is there and it is up to the new owner how big they want to be.
His crew is on payroll now which is very efficient since it is not a year round business because he pays them hourly when they are working. He has 5 workers each season of which 2 come back from the previous year. He knows of 2 that he has coming back this year already and it is easy to find the others since it exactly correlates with the ski resort employees. He just posts a notice in the local Ski Resorts locker room each spring and he finds the workers. The mountains has a lot of seasonally available employees from early April to early November because that is the exact opposite time frame of the winter ski resorts. This is a big positive for this company. In addition, it is not dependent on the economy and there are more businesses and parking lots being built in his territory every year. This business has 2 crews that work 2 sites at a time typically.
The owner will sign a non-compete. He is willing to transition the business and can teach the new owner how to run the business and how to grow it very easily. Industry experience is not necessary. There are no licenses required and he and his employees have the necessary experience. This is not rocket science. He does pick up his asphalt in Commerce City in Denver as needed which is every other weekend during the busy season. There is no special software needed and bidding/negotiating takes ½ hour on his computer which you can see in the video above.
· The owner leases a small parcel of land for only $230/month for the storage of the equipment and inventory.
This company has a great 5 star reputation and has won several awards. It is very valuable and takes a long time to build the trusted reputation this company has. He has a great record of safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.
This resort area is a great place to live because of its beauty, restaurants, events, and activities. Plus, it is sunny almost all year round in Colorado and there are a lot of very interesting places close by including Denver which is less than an hour and a half away. Plus, Colorado is the best State in the country to own a business. Colorado is the "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider’s. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.

Sincerely,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

This is prepared by Business Broker Colorado, LLC with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado, LLC and Jeff Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Growth & Expansion

This is the best part. He does most of his work in a big resort town and surrounding area but is offered work throughout the central mountains of Colorado. He gets a ton of leads for other resort areas and town but he has not expanded there. He is married and just doesn’t have the time or want to but his services already generate a lot of demand from the website that he doesn’t respond to. The new buyer doesn’t have to do anything but set up a crew and equipment to start doing these jobs. A new owner can also start working at lower elevations in the late fall or early spring if he/she wants to expand the months in the year which works. In fact, the new owner could do work in Denver Metro if he/she wanted to. He could do a lot more business by just taking more jobs because he turns down jobs daily. The current owner loves the industry. He is excited to teach the new owner how to run and grow this business. This is one of the easiest businesses I have ever seen to grow by just expanding its coverage area by adding some equipment and workers but without having to spend a lot of money on advertising. He states that the demand is there and it is up to the new owner how big they want to be.

Market Competition:

This business does not have a lot of competition. Almost 85% of the work is repeat jobs so most of his work is negotiated and not bid against competition. Most parking lots and driveways in the mountains are asphalt and not concrete because of the freezing/thawing cycle. Asphalt fades in color due to oxidation over time and even if it is still in great shape, most of his jobs are to put a new protective coating on giving it the beautiful finish.

Location Details:

The owner leases a small parcel of land for only $230/month for the storage of the equipment and inventory.

Support & Training

He will also stay and transition the business for as long as the new owner wants him.

Reason for Selling:

The owner wants to retire.

Listing ID: 27777

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