$4,750,000
Business Type: Construction / Construction-Specialty Trades; Lawn/Landscaping / Specialized Grass Services
Construction / Construction-Specialty Trades; Lawn/Landscaping / Specialized Grass Services
We are pleased to offer for sale, this profitable and growing North
Texas artificial turf company. This well-established, eleven-year old
family owned and operated synthetic turf company specializes in the
design and installation of synthetic turf for all their client’s various
athletic field related needs, including football, baseball/softball and
putting greens. The company advertises exclusively through Facebook and
it has no company website, which might be a hint at its upside
potential. It was established in 2013, by its founder, a serial
entrepreneur who oversees multiple business ventures.
They
specialize in building athletic fields, indoor/outdoor facilities,
batting cages, and cross-fit gym construction and Soccer. Their crews
are nimble, highly skilled and consider no job is too big or too small
for their highly dedicated and talented team. They are focused on
working hard to meet their customer demand and exceed their customer
satisfaction goals while establishing a strong relationship with their
customers, manufacturers, and suppliers.
The company is
currently completing a $1.6M athletic field in Rowlett, along with two
new youth football and soccer fields in various North Texas communities.
which they expect to complete in the coming months.
Over the
past four years, this company has generated solid and quickly growing
revenues of $2.1M in 2020 and up to $2.8M, in 2023, and it has generated
cash flows of between of $267K to $1M, respectively. After a slow start
in Year 2024, due to excessive inclement weather, the company is poised
to generate approximately $1.15M in revenues over the next ninety days
and they expect to exceed their Year 2023 revenues and cash
flow. According to a recently updated TTM (twelve trailing month)
P&L, dated September of 2023 to August of 2024, the company has
generated revenues of $2.8M and SDE of $1M.
The company could
double in revenues in Year 2025 based on known backlog of projects that
are forecasted. Its current backlog includes a committed large Louisiana
project which includes five fields which are valued at $6.5M, which has
been delayed due to a hurricane several weeks ago. Both the LA fields,
valued at $6.5M and the Farm League project, valued at $2M, are
expected to be completed in Year 2025.
Given that the company
has been earning SDE in the 30%-35% of revenue range, recently, the
seller would consider a fair earn out split on those jobs to be in the
15%-17.5% range of revenues for these projects. Any new jobs secured
prior to closing would be negotiated on a case by case basis in a manner
which is fair to both parties.
They typically collect deposits
for new jobs valued at 50% of the project cost, upon project award and
the remaining 50% upon project completion. Deposits valued at
approximately $500K are included in the company’s current revenues and
some of which are unearned until the projects are actually completed.
Unearned deposits accrued at closing will transfer to the buyer for use
as working capital to complete the work in progress.
Also
included in the sales price are Accounts Receivables which are valued at
$1,349,018. The sales price will be adjusted accordingly, dollar for
dollar, depending on the actual value of the company's accounts
receivables, on hand, at closing.
Lender Pre-Qualified Financing:
This
company boasts strong books and records, it’s financials are have been
pre-qualified by one of our Lenders for the financing of the
business acquisition, based on a buyer injection. We will provide a copy of the lender term sheet for financing a potential
transaction, for your consideration. The seller is flexible in terms of
being willing to offer a reasonable level of seller financing based on qualifications along with anticipated earn out scenarios. The seller is
also willing to stay on board with the company, as a consultant, after
closing for the length of any potential seller financing or earn out
scenarios.
For inquiries or to get in touch with us directly, please feel free to reach out via the provided phone number or complete the form below. We’re here to assist you in any way we can, making your business exploration as seamless as possible.
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