Capstone M&A is pleased to exclusively represent CMA103 (the “Company”) in the sale of its business. CMA103 is well-known for their expertise and dedication to excellence. This company has been servicing its customers for over 50 years. Revenue has been intentionally limited by preference of service area; however, a more ambitious ownership group could increase the radius of coverage and without capex considerations. The management and employees are well trained, and the ownership is willing to train and remains open to continued employment. The equipment is top-of-the-line and secures a majority of the asking price. 

 

History: CMA103 was incorporated in 1973. The company evolved to provide a variation of paving services, and while some of those services are still being offered today, the operation has grown with the utilization of available technology. Over the years, the brand has expanded into Asphalt Paving, Road Oiling, Concrete, and Excavating services.

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Services: 80% of total services are dedicated to “commercial work”. Commercial customers are classified as builders, other excavating companies, site preparation companies, municipalities, and mid-level business owners. The remaining 20% of services are geared towards residential. Because commercial work can be more demanding, residential work is generally scheduled as a stopgap to maximize employee bandwidth.

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Operations: CMA103 has an incredibly low turnover rate. The key employees are well trained with some tenures reaching over 20 years.  

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Equipment: CMA103 holds a variety of equipment. In total, the market valuation of hard asset included in the sale is roughly $2.2MM.

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Growth Opportunities: Expand the service area. CMA103 has maintained a 100-mile radius of service coverage. This area of service has provided $4MM to $5MM in annual revenue.

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Offer additional services. The existing customers would benefit, and often request, additional services surrounding site preparation, sewer work, and additional excavation. 

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Hire additional operators. The 520 has a trained operators on a ready-for-hire basis eliminating the obstacle of staffing issues.

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Develop a website. The company has succeeded without a digital presence; however, a more modernized approach would increase awareness and increase the odds of growth.