Leading Excavation Contractor in NV
ConstructionFor Sale in Reno, NV
Financial & Assets Details
About the Business
The Company is an established and respected Business that specializes in excavation services working primarily with residential Homebuilders and small commercial Developers. The Company has impressive margins well above the standards for the market and is poised for continued growth in one of the most dynamic housing markets in the United States.
The Company's revenue is well diversified across multiple homebuilding companies such as Toll Brothers, Tanamera Construction, Realm Constructors, Tim Lichty Construction, Built Construction, DA Builders, JCS Construction, TKR Construction, KDH Builders, GuiDenby, to name several of the more prominent relationships the Company maintains. The Company attributes its impressive growth to the quality of its work and the skill and respectfulness of its employees, as well as the Company’s image as a professional and responsible company.
The Business operates out of an 800 SF shop and approximately 1,600 SF of office with 21 employees, of which more than 19 are in the field, with one office manager in the office together with a VP of sales (who is an independent Contractor). The Company has a well experienced foreman running the Production projects while the Owner/President is running the Custom side.
The Company has experienced sustained growth over the last several years with no end in that growth foreseen. Sales in 2022 are again expected to grow 25% over of sales in 2021 (to about 4.2MM) with much of this revenue already under contract with various Homebuilders in the residential sector and from one of the largest builders in the nation, as well as with a surplus of custom homes on the schedule. Given the high demand for its services, the Company has been able to sustain its operating margin throughout its rapid growth and last year (2021) saw further expansion of its net operating income margin at a time when the home construction industry in general has experienced a great deal of margin pressure due to an increase in materials used in this sector, as well as fuel and competition for labor requiring , an increase in wages.
The services provided by the Company are in high demand by many of the largest Homebuilders in the nation that are actively building in the greater Reno-Sparks-Fernley MSA, which is one of the fastest growing economic regions in the Western U.S. According to the State of Nevada's most recent publication, the region is home to a population of more than 550,000 with many large companies, such as Tesla, Amazon, Chewy, Jet, Walmart, and Zulilly recently opening large manufacturing & distribution facilities in the region. Tech also finds this area very popular as both Apple and Google have set up huge server locations along with Blockchains and Switch.
The Company has been presented opportunities in the Tahoe Reno Industrial Center, which is the largest industrial park in the world. There is currently over 15,000 acres pre-zoned, fully entitled, and in active development. This is where Tesla is completing its Giga Plant and many other companies are establishing distribution centers. Distribution is huge here due to proximity for one day shipping to approx. 60 million people offering no inventory tax. All these companies are new to the area within the last 5 to 8 years and more are continuing to move here, creating the large vacuum of housing needs that is driving our housing growth and pricing.
The Reno-Sparks-Tahoe-Fernley Combined Statistical Area (“CSA”) region is expected to continue its rapid growth due to its close geographic proximity to many of the largest population centers and commercial ports in the United States (less than a 4-hour drive to most parts of the Bay Area), coupled with no state corporate or personal income taxes, and a state government regulatory environment that is ranked in the Top 10 of the friendliest for business in the United States.
The Company has many opportunities to expand by offering its services to other major Builders such as DR Horton, Lennar, and many local Developers who are currently in conversations for upcoming projects. In addition, there are many opportunities for expanding its scope of services into mass grading, large multi-family, large commercial, and industrial to name a few.
The Company is highly differentiated as follows:
- Projected growth and profitability based on established contracts.
- Managed by an experienced President, financial and office manager, and Foreman plus experienced field crews with well-defined roles and job responsibilities.
- A++ list of corporate clients: National and regional homebuilders and multi-family contractors who are active in the region.
- Ranks extremely high among its peers in performance and competence.
- It operates in the lucrative Reno-Sparks-Tahoe-Fernley Combined Statistical Area (“CSA”) region.
- Started by the Company founder in June 2017 and has experienced consistent growth and profitability ever since.
- Company has an established management structure
- The Company enjoys a high degree of visibility and customer awareness in its target market due to the quality product provided and to life-long established relationships in the community and the construction industry resulting in minimal investment required for advertising. Word of mouth and referrals are the invaluable outcome.
- The Company has few competitors who are as adequately positioned with a fleet of machines that have been strategically capitalized to maximize productivity and leverage their position for stability regardless of market variables. There are few to none that are more organized, with strategic direction, liquidity, and better rates of return. Furthermore, the Company also has a strategic advantage in regard to the bulk of their current competitors preparing to age out of the industry with no legacy plans in place creating a vacuum for increased market share.
Growth & Expansion
Reason for Selling:
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