Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA), and Mills Snell (@thegeneralmills) talk about a Non-Union Heavy Civil Excavation Contractor in Michigan. We dig into the operations, CapEx dynamics that you should consider, and we dig into the Union vs Non-Union tradeoff.
Would we buy this? Tune in to find out.
Company: Non-Union Heavy Civil Excavation Contractor
TTM Revenue 09-22 - $ 10,213,927 | Adj EBITDA 09-22 - $ 3,142,246
Equipment value $ 4,000,000 | Real Estate Value $ 700,000
Asking Price: Undisclosed
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(00:00) - Introduction
(00:55) - Our Sponsor is CloudBookkeeping.com
(02:28) - Deal & financials: Non-Union Heavy Civil Excavation Contractor in Michigan
(03:15) - What is water skiing?
(03:53) - How does this deal work?
(05:29) - Red flag. Is it a deal-breaker?
(06:44) - What are our first thoughts?
(08:33) - Mike’s take on this deal
(09:49) - Why should we give this deal a shot? Mills’ take
(11:44) - What are the operative dynamics around the heavy equipment part of the CapEx?
(15:00) - Why is this business easier to run when interest rates are lower?
(15:50) - Are Unions that bad? What are the ups and downs of Union involvement?
(21:41) - How much involvement is required from the owner in contractor based- businesses?
(25:06) - What’s the catch with C-Corps & S-Corps and Real Estate? Is the hype to flip your company to an S-Corp advantageous?
(26:30) - What fees should you pay to avoid future problems?
(28:30) - Would we buy this?
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