$11.0M
$2.6M
2.8x
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Step into a Florida institution with a 50-plus-year reputation as the region's go-to supplier of complete doors, frames, and hardware packages. This established commercial construction supply company serves general contractors statewide on education, healthcare, government, hospitality, and residential projects, with decades-long relationships (20 to 40-plus years) that drive repeat bid volume and reliable revenue. FY2025 was a record year for revenue of $11.0M (up 81% over 2024) and Adjusted EBITDA of $2.6M, powered by in-house hollow-metal fabrication and a stocking-distributor model that beats broker-only competitors on lead time. The business is debt-free and carries $1.62M of net working capital, while a long-tenured estimating, service, and logistics team is committed to staying on post-close. With clear upside in outbound sales, estimating technology, and adjacent product lines such as access control, this is a rare turnkey platform positioned for continued growth in one of the nation's strongest construction markets.
Why we like it
- Earnings quality looks strong on the surface: $2.57M of cash flow on $11.0M revenue is a ~23% margin, the business is debt-free, and it carries $1.62M of net working capital that supports the operation. A debt-free balance sheet with real inventory backing means the downside is protected by tangible assets, not just goodwill.
- The moat is relationships plus fabrication. Twenty to forty-plus year contractor relationships get this company onto approved supplier lists and drive repeat bid volume, and in-house hollow-metal fabrication lets it win on lead time versus broker-only competitors. Contractors reorder from suppliers who deliver on schedule, and switching costs on a project mid-flight are real.
- The product is non-discretionary and recession-resilient. Doors, frames, and hardware are required on every commercial building, and a healthy chunk of demand is tied to education, healthcare, and government projects that keep spending through downturns. This is boring, essential infrastructure supply, exactly the kind of durable cash flow that survives cycles.
- Florida is one of the strongest and most sustained construction markets in the country, with population growth and public-sector building both providing tailwinds. A statewide footprint on a growing base means the market is not the constraint on growth here, execution is.
How to improve it
- Build an outbound sales function. The listing explicitly flags outbound sales as upside, which tells you growth to date has been inbound and relationship-driven. Hiring one or two dedicated reps to systematically pursue new GC relationships and expand share of wallet with existing accounts is a clear, near-term lever.
- Layer in adjacent product lines, starting with access control and electronic hardware. The company already sells the doors and frames those systems mount to, so cross-selling access control to the existing contractor base is a natural, higher-margin attach with minimal customer acquisition cost.
- Modernize estimating with technology. Estimating speed and accuracy directly determine bid win rates and margin protection in this business, and the listing names estimating tech as upside. Investing in better takeoff and quoting software lets the team bid more jobs faster without adding headcount.
- Institutionalize the customer relationships into a CRM before the owner leaves. Decades-long relationships are the asset, and much of that knowledge likely lives in the heads of the owner and long-tenured staff. Documenting contacts, bid history, and preferences de-risks the transition and protects the moat.
- Analyze the 81% revenue jump and rebuild the pipeline around it. Understand which projects and customers drove the surge, then codify what won those jobs so the growth is repeatable rather than a one-off. This turns a scary-looking number into a playbook.
- Tighten working capital and inventory management. With $1.62M in net working capital tied up, there is likely room to improve inventory turns on slow-moving SKUs and negotiate better terms with core suppliers, freeing cash to fund growth or service acquisition debt.
- Explore a second location or satellite yard in another Florida metro. As a statewide supplier, lead time is the differentiator, and a strategically placed stocking point could win business in markets where the current single-location logistics footprint is a disadvantage.
Diligence notes
- Scrutinize the 81% revenue jump above all else. Determine whether it came from a handful of large projects, a sustainable share gain, or a pricing/inflation bump, and confirm whether FY2025 EBITDA of $2.6M is a normalized run-rate or a peak. The entire valuation thesis at 2.82x hinges on whether this is a new baseline or a spike.
- Test customer concentration and backlog. Decades-long relationships are great, but a project-driven distributor can still have dangerous concentration in a few GCs or a few large jobs. Pull revenue by customer for the last three years and get a current signed backlog to see how much of forward revenue is already committed.
- Verify the team's post-close commitment in writing. The value of this business is heavily tied to the estimating, service, and logistics staff staying on, so confirm key employees with stay agreements or retention incentives rather than relying on verbal intent. Estimator turnover would directly hit bid volume and margin.
- Reconcile the SDE/EBITDA figure and the working capital delivered at close. Clarify whether the $2.57M is cash flow or adjusted EBITDA (the listing uses both), scrub the add-backs, and pin down exactly how much of the $1.62M net working capital transfers with the business versus being retained by the seller.
- Confirm the reason for sale and transition terms, which are not disclosed. Understand why a debt-free, record-year business is being sold and what training and handover the owner will provide, since relationship transfer is critical in a bid-driven distribution model.
- Assess supplier relationships and any exclusive distribution or manufacturer agreements. The stocking model depends on reliable vendor supply and pricing, so review whether key supplier contracts are transferable and whether any hollow-metal or hardware line rights could be at risk in a change of ownership.
Source
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