Civil Site Contractor, South Florida

$2.9M

Revenue

$667K

SDE

3.0x

Multiple

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Full Editorial Writeup

This is a well-established civil site contractor operating in the South Florida market, generating roughly $2.9M in trailing twelve month revenue against $667K in owner cash flow. Civil site work covers the unglamorous but essential groundwork that precedes vertical construction: excavation, grading, site preparation, underground utilities, storm drainage, and paving. In a growth market like South Florida, this work is the first phase of nearly every commercial, residential, and infrastructure project.

The roughly 23 percent cash flow margin is healthy for site work, which is typically an equipment and labor intensive trade with tighter margins than specialty trades. That margin suggests either disciplined bidding, favorable job mix, or meaningful owner involvement in estimating and project management. At a 3x multiple on SDE, the $2M ask is priced in line with construction comps, though the specifics of equipment, backlog, and crew retention will determine whether this is a bargain or a trap.

The business sits in one of the strongest construction markets in the country, with sustained population inflows and development activity in Florida driving demand for site work. The key question for any buyer is how much of the earnings walk out the door with the seller, and whether the equipment and licensing transfer cleanly.

Why we like it

The 23 percent cash flow margin on $2.9M in revenue is strong for civil site work, a trade normally squeezed by equipment costs and competitive bidding. Earnings of $667K on a $2M ask means a 3x multiple, roughly a 33 percent unlevered yield before any operational improvement.
Civil site work is a required first phase of nearly every construction project, giving the business structural relevance across residential, commercial, and infrastructure jobs in the market. Established contractors with a track record hold real advantages in bonding capacity, relationships with GCs, and permit familiarity that new entrants cannot replicate quickly.
South Florida remains one of the strongest construction markets in the country, driven by sustained population growth and continuous development. A well-positioned site contractor is riding a tailwind of steady project flow rather than fighting a shrinking pie.
At $2M with $667K in cash flow, an SBA 7(a) buyer can structure this with roughly $500K down and cover debt service comfortably from existing earnings. The margin of safety on the numbers is real if the cash flow proves durable and transferable.

How to improve it

Audit the estimating and bidding process in the first 90 days to identify jobs where margin was left on the table. Site work lives and dies on accurate takeoffs, and even a two point margin improvement on $2.9M adds nearly $60K to the bottom line.
Formalize the relationships with general contractors and developers into repeat referral pipelines or preferred-vendor agreements. If revenue currently depends on the owner's personal relationships, converting those into company-level accounts protects value and enables scaling.
Review equipment utilization and the buy-versus-rent mix. Heavy iron sitting idle destroys returns in site work, so tightening fleet deployment or selectively renting during peaks can free cash and improve job-level profitability.
Build out a project management and estimating layer beneath the owner so the business is not dependent on one person for winning and running jobs. This is the single biggest driver of both risk reduction and future valuation.
Push into higher-margin scopes like underground utilities and storm drainage if the crew and equipment allow. Specialty site work commands better pricing than commodity grading and clearing.
Pursue or expand bonding capacity to bid on larger public and municipal projects. Government-funded infrastructure work provides counter-cyclical revenue that offsets private development downturns.

Diligence notes

Determine how much of the $667K cash flow depends on the owner personally running estimating, bidding, and client relationships. If the seller is the rainmaker and lead estimator, the transferable earnings could be materially lower than reported.
Verify the equipment situation carefully: what is owned free and clear, what is leased or financed, and what condition and remaining life it has. Site work is capital intensive, and undisclosed near-term equipment replacement needs can wipe out a year of cash flow.
Confirm the state of the backlog and the customer concentration. Ask for a job-by-job breakdown of the last 24 months to see whether revenue is diversified or dependent on one or two GCs or developers.
Review contractor licensing, bonding, and insurance requirements in Florida and confirm they transfer or can be re-established by the buyer. A civil contractor license is often tied to a qualifying individual, so a departing owner could create a licensing gap.
Scrutinize crew retention and labor availability. Skilled equipment operators and foremen are hard to replace in a tight South Florida labor market, and key personnel leaving with the seller would impair the business immediately.
Reconcile the reported SDE add-backs against tax returns and confirm the revenue is TTM 2025 as stated. Construction earnings can be lumpy, so pull three years of financials to normalize for project timing.

Source

Originally listed on Sunbelt Business Brokers. View original listing →