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Southeast Based Commercial Roofing Service Provider

Construction

Client Number

62675

EBITDA

$3,500,000

Revenue

$16,500,000

Region

Southeastern U.S.

Contact Details

(214) 529-4598

tmackin@generational.com

Founded in 1994, the Company has become one of the largest commercial roofing contractors in the region. Capabilities and services offered include new roof installations, reroofing services, and service and maintenance for large and high profile projects located within their geographic reach. The client breakdown as a percentage of revenue consists of 43% for the private sector, 36% for local institutions, and the remaining 21% for government entities. The operation is supported by 15 full-time office personnel and an additional 88 full-time roofing laborers.

Investment Considerations:

Strong Historical Performance: Revenue and EBITDA increased at a 10.5% and 47.4% CAGR, respectively during the historical period. Significant growth was achieved organically while management successfully controlled operating expenses partly due to economies of scale as well as the fixed nature of certain overhead costs. Balanced Customer Based Providing Long Term Stability: The Company’s ability to maintain strong relationships in the private and public sector as well as the institutions located within their operating vicinity positions the operation in a strong position should one of the sectors fall off or decline in spending in any given year. Maintenance Service Offering: The Company’s ability to provide maintenance service provides it with a competitive advantage over other commercial roofing contractor while also providing management with a recurring and dependable revenue stream after each and every project is completed. Contract Backlogs: As of December 31, 2018, the Company’s secured backlog was over $6.1 million. Rising Gross Profit Trend: Gross profit margins increased from 30.2% in 2016 to 37.7% reflecting management’s ability to grow revenue without lowering prices. In fact, the strong margins would indicate an improved position of leverage allowing management to price their services at higher levels the market is willing to bear.

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