Bradenton Construction Company, Family-Owned Florida Contractor with 14-Month Backlog

$1.4M

Revenue

$505K

SDE

3.8x

Multiple

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Full Editorial Writeup

This is a family-owned construction company operating in the Bradenton, Florida market, currently listed by Sunbelt Business Brokers for $1.9M. The standout feature is a 14-month contract backlog, which means revenue is not a hopeful projection but largely spoken for well into the future. On $1.411M in revenue it throws off $505,200 in owner cash flow, a roughly 36% owner-benefit margin, which is strong for a construction shop and suggests the owner is running a lean, profitable operation rather than a low-margin volume play.

The Bradenton and greater Sarasota-Manatee corridor has been one of the fastest-growing metros in Florida, driven by in-migration, retirees, and new residential and light-commercial development. A contractor with a durable book of business in this market benefits from that demographic tailwind, though it also means the business is exposed to the local construction cycle and interest-rate sensitivity of new building.

What is notable here is the combination of visible near-term revenue and healthy margins at a 3.76x multiple. That is a reasonable entry price for a cash-flowing construction business, but the thin public disclosure (no year founded, no detail on trade specialty, crew size, or contract mix) means the real work is in diligence to confirm the backlog quality and how much of that $505k is truly transferable to a new owner.

Why we like it

Earnings quality is the headline: $505,200 of cash flow on $1.411M revenue is a ~36% owner-benefit margin, which is unusually strong for construction and implies disciplined bidding and cost control. A buyer should confirm how much of that is genuine profit versus owner labor that must be replaced.
The 14-month contract backlog is the single most attractive feature. Most construction businesses live or die on the next bid, so buying one with more than a year of booked work materially de-risks the first-year cash flow and gives a new owner runway to learn the operation before hunting new contracts.
The Bradenton and Sarasota-Manatee market has strong demographic tailwinds from Florida in-migration and retiree-driven residential and light-commercial demand. A contractor with an established local reputation is well positioned to keep the pipeline full if the seller's referral relationships transfer.
At 3.76x cash flow the entry multiple is reasonable for a profitable, family-run trade business with visible revenue. That leaves room for financing structure and a fair return if the backlog and margins hold post-close.

How to improve it

Map and formalize the sales pipeline in the first 90 days. A family-run shop with a strong backlog often relies on the owner's personal relationships and referrals, so build a simple CRM, track bid win rates, and formalize follow-up so the pipeline outlives the seller.
Audit gross margin by project type and drop or reprice the lowest-margin work. With a 14-month backlog you have leverage to be selective, so identify which trades, project sizes, or clients drive the 36% owner margin and concentrate bidding there.
Build a general manager or lead project manager layer if one does not exist. If the seller is personally estimating, selling, and running jobs, a new owner needs a second-in-command quickly to make the cash flow transferable and to scale beyond one operator's capacity.
Institutionalize vendor and subcontractor relationships. Lock in pricing agreements with key suppliers and reliable subs so a new owner is not exposed to cost spikes or crew shortages that could erode the strong margin during the transition.
Add recurring or repeat-revenue service lines where the trade allows, such as maintenance, warranty, or service contracts. Construction is lumpy and project-based, so any layer of recurring revenue smooths cash flow and reduces reliance on continuously winning new builds.
Tighten billing and collections cadence. Construction cash flow can be strangled by slow draws and retainage, so implement progress-billing discipline and shorten receivable cycles to protect working capital under new ownership.

Diligence notes

Verify the 14-month backlog contract by contract: get signed agreements, confirm deposit or draw status, contract values, expected completion dates, and any cancellation or contingency clauses. A backlog is only worth the paper it is written on if the contracts are firm and the margins on them are what the seller claims.
Reconcile the $505,200 cash flow figure to tax returns and confirm what add-backs were used. Determine how much of that number reflects the owner's own project management, estimating, and field labor, because that portion is a real cost a new owner must pay for or replace.
Confirm the licensing structure and whether the qualifying license is tied to the owner personally. Florida construction licensing can be a dealbreaker if the qualifier leaves with the seller, so understand how the license transfers and whether the buyer must bring or hire a qualifier.
Investigate customer and project concentration. Ask how much of the backlog and trailing revenue comes from a small number of builders, developers, or clients, since heavy concentration means the loss of one relationship could gut the business.
Assess crew and subcontractor dependency in the tight Florida labor market. Confirm whether the workforce is W-2, subbed out, or owner-recruited, and gauge the risk of key crew or subs walking after the sale.
Clarify the year founded, ownership history, and reason for sale, none of which are disclosed. Understanding how long the business has operated and why a profitable family operation is being sold will surface whether there is a hidden cyclical, legal, or reputational issue behind the clean numbers.

Source

Originally listed on Sunbelt Business Brokers. View original listing →