Commercial Drywall & Framing Contractor, Florida with $23M+ Backlog

$13.2M

Revenue

$1.7M

SDE

6.2x

Multiple

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Full Editorial Writeup

This is a confidential sale of a specialty commercial construction contractor based in Florida that performs drywall and metal framing work for commercial projects. The business generates roughly $13.2M in annual revenue against $1.73M in reported cash flow, a cash-flow margin of about 13 percent, which is respectable for a labor-intensive trade subcontractor. The headline feature is a stated backlog of more than $23M, which is nearly 1.8x trailing revenue and implies strong near-term visibility if those contracts are real, signed, and collectible.

Drywall and framing subs sit mid-stack in the commercial construction chain, working under general contractors on new builds and tenant buildouts. The work is competitive and bid-driven, with margins compressed by labor availability and material pricing. A contractor positioned in Florida benefits from one of the strongest construction markets in the country, driven by population growth, commercial development, and a steady pipeline of institutional and multifamily work.

At $10.7M asking against $1.73M cash flow, the deal prices at 6.19x, which is aggressive for a project-based trade sub with no recurring revenue. The premium is clearly being justified by the backlog and growth trajectory. A buyer is really paying for a book of future work rather than a durable annuity, so the entire thesis hinges on verifying that backlog and the margin it carries.

Why we like it

The $23M+ backlog is nearly 1.8x trailing revenue, which gives unusual forward visibility for a bid-driven trade sub. If those contracts are signed with creditworthy GCs at protected margins, the first 12 to 18 months of revenue are substantially de-risked.
Florida is one of the best construction markets in the US, with sustained population inflows, commercial development, and multifamily demand. A positioned drywall and framing sub rides that tailwind without carrying location-specific regulatory drag.
The 13 percent cash-flow margin is solid for a labor-heavy trade subcontractor, where many peers run thinner. It suggests disciplined estimating and job costing rather than chasing volume at breakeven.
This is a scalable platform in a fragmented trade where a capable operator can bolt on crews, expand into adjacent scopes like acoustical ceilings or exterior framing, and consolidate smaller subs. Construction subs rarely command premium multiples, so disciplined roll-up acquisitions can be done at lower entry prices.

How to improve it

Within 90 days, build a live backlog dashboard tracking contracted value, percent complete, billed vs. earned, and gross margin by job. You cannot manage a construction sub without real-time WIP visibility, and clean job costing is the fastest path to finding margin leakage.
Audit the GC customer concentration and payment terms, then push for milestone billing and tighter retainage recovery. Drywall subs die on the cash conversion cycle, so accelerating collections frees working capital to fund the backlog without a credit line.
Lock down the key superintendents, estimators, and foremen with retention agreements before close becomes known. The enterprise value here walks out the door on two legs, and losing a lead estimator can torch the bid win rate overnight.
Expand into adjacent scopes such as acoustical ceilings, EIFS, or light-gauge exterior framing to increase scope per project. Capturing more of each GC's buildout raises revenue per relationship without adding new customer acquisition cost.
Implement a materials procurement program with volume commitments from gypsum and steel-stud suppliers to hedge input volatility. Material pricing swings directly hit the thin margin, so locking pricing on backlogged jobs protects the bid assumptions.
Build a repeatable crew-scaling playbook including subcontract labor partners for peak demand. The constraint on growth in this trade is skilled labor, not demand, so a reliable labor bench lets you take on larger jobs from the backlog.
Develop a small bolt-on acquisition pipeline of local competitors doing $2M to $5M in revenue. Buying trade subs at 3x to 4x and folding them into a platform with better procurement and billing arbitrages the multiple you are paying here.

Diligence notes

Verify the $23M backlog line by line: signed contracts, GC creditworthiness, start dates, change-order exposure, and the gross margin baked into each job. A backlog of unsigned LOIs or low-margin work would gut the entire thesis behind the 6.19x multiple.
Pull a detailed WIP schedule and reconcile it to the financials to confirm revenue is recognized correctly and there are no underbilled or overbilled jobs hiding problems. Construction accounting is where distressed jobs get buried, so the WIP is the single most important document.
Examine customer concentration among general contractors and the history of payment disputes, liens, and bad debt. A sub dependent on two or three GCs carries real risk if one slows payment or goes bankrupt mid-project.
Normalize the $1.73M cash flow for owner add-backs, equipment lease vs. ownership, and any one-time project gains during the recent growth spurt. Rapid growth can flatter trailing earnings, and you need to know the steady-state margin, not the peak.
Confirm licensing, bonding capacity, insurance, and any open workers comp or lien claims. Bonding capacity is the ceiling on how much backlog this business can actually take, and a buyer needs to know whether that capacity transfers.

Source

Originally listed on DealStream. View original listing →