Philadelphia, PA (Philadelphia County)

Established:1981
Ad#: 1790031
Added: 09/28/20

Founded in 1981, this Pennsylvania based company is a highly reputable and leading provider in civil construction with a focus on concrete, storm water, parks, ADA compliant construction and street works. The company provides services for municipalities, general contractors, and private owners for customers across Pennsylvania.

The company has established a history of excellence in providing customers with high-quality construction services and will continue to ensure the same standard of excellence in all future operations. The company’s 39-year history, coupled with the latest in industry knowledge, broad service capabilities, and customer relationships, makes the company unbeatable in delivering continued customer satisfaction.

The company serves a variety of markets including municipalities (77% of 2020 revenue), general contractors (17%), and residential (6%) customers within a two-hour radius of the company’s headquarters. Overall, the company’s established customer base is a strong asset that contributes to stability and presents opportunities for revenue growth.

In 2020, the company’s revenue was derived from construction (92%), maintenance repairs (6%), and snow plowing (2%). Also, the company completed an estimated 40 projects varying in project size from $7,000 to $4 million with the company’s current backlog es?mated to be $2.1 million.

Overall, with professional and high quality services, a superior industry reputation, strong customer relationships, and solid management team, the company is well positioned for growth.

INVESTMENT APPEAL

• Superior Reputation: For close to 40 years, the Company is seen as a recognized leader in civil construction with a focus on concrete, storm water, parks, ADA compliant construction and street works. The Company is well known for its expertise on meeting the needs of complex and fast track projects.
• Unbreakable Client Relationships: The Company is proud of its unbreakable ties to clients and its reputation for quality work and client service. The Company’s top five clients in 2020 have been working with the Company from a minimum of 20 years to a high of 38 years.
• Industry Expertise: With the principal's extensive contracting experience combined with the Company’s key employees industry and service knowledge, the Company has a large advantage over many regional and local competitors.
• Strong Historical Sales Growth: Historical sales grew from $3,141,000 in 2018 to $5,590,000 in the fiscal year ending March 31, 2020, representing a compound annual growth rate of 33.4%.
• Pipeline of Signed Contracts: The Company already has approximately $2.1 million of revenue under contract for 2021, representing revenue large enough to cover 100% of estimated operating expenses for the year.
• Rising Gross Profit Trend: Gross profit during the historical period has increased from15.2% of sales in 2018 to 23.2% of sales by the end of 2020. Decreasing Operating Expenses: Operating expenses have been trending lower, decreasing as a percent of sales from 10.2% in 2018 to 6.2% in 2020.
• Strong Earnings: The Company has experienced strong growth in EBIT, from $88,000 in 2018 to $909,000 in 2020, representing a compound annual growth rate of 222.3%. Earnings have grown consistently year over year in the historical period.
• Strong Net Working Capital: As of March 31, 2020, DLC’s unadjusted current assets were approximately $1,748,000 and current liabilities were $1,042,000, resulting in a Net Working Capital (NWC) of $706,000. A strong NWC provides a pool of resources from which the Company can draw for continued growth and a strong buffer to maintain opera?ons in the event of various systematic and unsystematic risks.

Please complete NDA for more information about the business:

https://generational.tfaforms.net/4660083?DealID=a1L2G000005Y4iE

Detailed Information:

Location:
Philadelphia, PA

Employees:
30

Facilities:
The company operates out of a beautiful 14,000 square feet building utilized for office, warehouse, and storage purposes. The building can accommodate higher revenues without major facility improvements or capital equipment expenditures.

Support & Training:
Seller is proud of the business they've built. Their primary goal is to make sure the new Buyer is successful. Hence, they will stay on as long as the Buyer needs them.

Reason for Selling:
Preparing for Retirement