GOTTESMAN COMPANY &  Cooperating Intermediaries Seller Profile

United States, Canada & Europe Since 1985

America’s International Network of M&A Business Brokers

Acquisition Opportunity

S-2460-10-RS

Commercial Plumbing & Piping Contractor

Business Description:

This is a unique opportunity for a buyer to acquire a leading specialty plumbing contractor in a growing market in the Southeast U.S. Founded in the 1970’s, the Company has evolved into a leader in its market as evidenced by its revenue and profit growth. Well known and recognized for its expertise on large, complex commercial projects, the Company achieved record revenue and profitability in 2015. The Company has a diverse mix of commercial, residential and service capabilities that provide a compelling offering to developers and general contractors in the markets it serves. Also, the diverse mix of work among several different industry verticals helps to mitigate cyclicality risk in end markets. We believe there is an opportunity for meaningful value creation in a rapidly growing market, especially when combined with an existing operating platform with infrastructure and/or growth capital available to invest in new markets or new capabilities.

Distribution:

With a resume of construction experience that includes over 10,000 jobs; our client has emerged as a leader in hi-rise condominium and hotel projects. The Company has developed a system of managing projects that ensures the customer and general contractor receive the highest level of quality workmanship delivered in a consistent and timely fashion. The Company has been involved in some of the most successful high-end commercial hi-rise developments in the Southeast. The new construction landscape in the Company’s service area does not show signs of slowing and, as of December 31, 2016, contracted backlog was approximately $25.8MM.

Operational Strengths:

Our client is proficient in both service/repair and in a variety of areas in new construction including: residential construction, remodels, tenant build-outs, office buildings, medical research buildings, schools, shell office buildings and more. The Company has earned a reputation as an elite subcontractor through years of recruiting and retaining some of the industry’s finest project managers, general foremen and laborers.  For decades and multiple repeat jobs, the Company has developed strong relationships with a number of large developers and general contractors which has led to repeat business. The service/repair department provides consistent revenue stream. The service department performs residential, commercial and industrial repairs and offers emergency service 24 hours a day, every day of the year.  The service department has been growing consistently over the years with 2015 and 2016 revenue of approximately $6.1MM and $6.0MM, respectively. The company has a senior management team with over 180 years of combined construction management experience.  In addition, the Company has developed solid bench strength behind each member of the senior management team with a thoughtful succession strategy in place.

The Transaction:

The Company is interested in exploring strategic alternatives for the business, including a potential sale. Ownership is interested in a transaction that enables certain shareholders to take chips off the table and diversify their net worth. In addition, a buyer with capital and/or complementary contracting services could help position the Company for continued growth with an opportunity to build on its well-established brand in the Southeast market.  There are many ways to grow the Company both geographically as well as expanding capabilities into other complementary areas like mechanical services. In 2015, the Company was in the middle of completing the largest project in its history, which accounted for the large increase in revenue.

Financial Summary ($ millions, unless noted)

   2016  2015  2014  2013
Revenue $18.6  $39.4  $ 23.1  $12.1 
Adjusted EBITDA $613K  $4.4  $2.3  $432K 

Other Highlights

Location Financials Management Team in Place Years in Business SIC Classification
Southeast US Reviewed Yes 45+ 1711/1796

Direct All Inquiries to:
Gottesman Company
Refer to:  S-2460-10 RS
Tel: 212-330-8010     Fax: 646-434-4557
E-mail: office@gottesman-company.com

4/3/17   

Gottesman Company – 200 East 71st Street – New York, NY 10021 www.Gottesman-Company.com

This document is confidential and contains proprietary information belonging to Gottesman Company. It is unlawful to reproduce or distribute without express written consent of Gottesman Company. No warranties or representations are made in connection with the information provided herein. Gottesman Company is an M&A Business Broker, whose mission is to locate opportunities and introduce participants.