Dollar Bill
Member
As indicated, I'm evaluating an opportunity to buy an existing excavation company that's been in business 20+ years.
They have assets in excess of $600,000 USD to include 4 dozers, 4 excavators, 1 grader, 1 scraper, 2 extendahoes, 2 steel wheel compactors, 2 dump trucks, 2 dump trailers, 2 truck tractors, 2 low boys and various other equipment. I'd say the average age of the equipment is around 5-7 years. Some older, some brand new.
They have a reported adjusted cash flow of ~$300,000 USD on $1,100,000 gross. Owner is retiring.
Asking $1,000,000 USD.
I have an industrial background but not much experience in the excavation industry. I do have a good mind for business, understand costs and can manage people. If we can't quantify how we would bring value to this business, we would not move forward on this deal.
I'm meeting with the owner soon and would welcome any comments you have.
Having to do it over again, would you get into this business?
What are some of the big mistakes you have made?
What keeps you up at night?
They have assets in excess of $600,000 USD to include 4 dozers, 4 excavators, 1 grader, 1 scraper, 2 extendahoes, 2 steel wheel compactors, 2 dump trucks, 2 dump trailers, 2 truck tractors, 2 low boys and various other equipment. I'd say the average age of the equipment is around 5-7 years. Some older, some brand new.
They have a reported adjusted cash flow of ~$300,000 USD on $1,100,000 gross. Owner is retiring.
Asking $1,000,000 USD.
I have an industrial background but not much experience in the excavation industry. I do have a good mind for business, understand costs and can manage people. If we can't quantify how we would bring value to this business, we would not move forward on this deal.
I'm meeting with the owner soon and would welcome any comments you have.
Having to do it over again, would you get into this business?
What are some of the big mistakes you have made?
What keeps you up at night?