Profitable, Growing Paving and Maintenance Company for Sale in Springfield, MO

Highlights of Business
Business is well established, rapidly growing, and nicely profitable
General manager in place and willing to stay on
Usually Monday through Friday work week, with only occasional weekend work
Steadily growing sales and profitability
Sales for 2022 were up 38.5% over 2021
Clean books and records
Very minimal inventory required
Seller will train
Business qualifies for SBA financing, which means lower down payment and longer terms
Seller will sign a non-compete agreement

History/Operations
The owner started the business in 2009. Most of the company's business is done within Springfield and the surrounding 50 miles.

Facilities
The business operates from an office and shop that is centrally located to its customers and materials suppliers, and which is owned by the business. The real estate is available through VR's sister company Professional Real Estate, LLC.

Discretionary Earnings
The seller is representing that the Discretionary Earnings for this business for 2022 were $424,777, and that they can prove it to a buyer and their accountant's satisfaction. That amount is AFTER deducting the estimated debt service on the purchase of the real estate (estimated at $67,104 yearly).

Real Estate
The office and shop from which this business operates is available through VR's sister company Professional Real Estate, LLC, and is priced at $595,000.

Financing
This business qualifies for SBA financing, since it has good books and records, and is priced attractively for its Discretionary Earnings.

Reason for Selling
The owner is moving out of state.

Employees
One full time employee serves as general manager. There are 6-8 other full time employees.

This is a rapidly growing, well-run business with good profitability and very substantial upside, and which is priced attractively. Buyers who believe it might be a possible fit for them should not delay in taking the next step, which is to arrange to receive the full confidential information.

Down Payment: $172,245

Total Sales: $1,692,132

Cash Flow: $424,777

EBIT: N/A

EBITDA: N/A

Accounts Receivable: N/A

Accounts Receivable Included: No

FFE: $225,000

FFE Included: Yes

Inventory: $2,000

Inventory Included: Yes

Year Established: 2009

Lender Pre-Qualified: Yes

Non-Owner Payroll: N/A

Absentee Owner: No

Real Estate: $595,000

Real Estate Included: No

Monthly Rent: N/A

Franchise: No

Reason For Sale:

Seller is moving to another state.

Training & Support:

The seller will provide 30 days of dedicated training at no additional cost.

Potential Growth:

This business has considerable upside potential. There are several ways the business could be grown.

Financing/Terms:

This business qualifies for SBA financing, since it has good books and records, and is priced attractively for its Discretionary Earnings.

The seller estimates that $40,000 would be needed for working capital. Buyers should consult their accountant if necessary, to determine if that is an appropriate amount of working capital for this business. Most lenders would be happy to loan that much or more in working capital for this business, as the cash flow from the business would fully support it.

Down payment for the business and real estate would be approximately $172,245, assuming an SBA loan, sales price of the business of $1,034,000, sales price of the real estate at $595,000, $40,000 borrowed for working capital, and loan expenses added to the SBA loan of $53,445.

The advantages of a business being able to be financed with an SBA-guaranteed loan are:

1) A lower down payment than a seller would require were they providing financing (typically only 10% of the Project Cost is
required by SBA rules);
2) A much longer term than a seller would offer (typically 10 years for a business, 25 years for real estate, per SBA rules); and
3) A lower interest rate than a seller would typically offer (currently around 9.5%).

Often a conventional loan is not a possibility in financing the purchase of a business, because the cash flow of most successful businesses is worth more than the value of the business’ assets, so there is insufficient collateral to secure a conventional loan. SBA loans are based on the cash flow of the business and for the most part are made irrespective of the amount of collateral available.