Full-Service Asphalt Paving & Maintenance Contractor, Southeast US

$19.7M

Revenue

$3.1M

SDE

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Full Editorial Writeup

This is a full-service asphalt paving and maintenance contractor headquartered in the Southeast United States, generating roughly $19.7 million in revenue and $3.06 million in adjusted EBITDA. The company does the full spectrum of asphalt work: crack sealing, striping, signage, milling, and resurfacing on the maintenance side, plus full paving and site development projects that layer in curb & gutter, sidewalk, and base installation. The revenue split is attractive and balanced, with roughly 45% coming from maintenance work and 55% from paving and site development in the TTM period ending June 30, 2026.

The customer base is diversified across private developers, general contractors, property managers, municipalities, and homeowner associations within an approximate 100-mile service radius. The business runs on a well-maintained equipment fleet with cross-trained field crews, giving it the flexibility to flex crew sizes up or down with demand. As of August 2026 the company carried about $16.5 million in open contract value with completion dates extending into 2027, which gives a buyer meaningful visibility on near-term revenue.

What makes this notable is the combination of scale, a growing earnings base (adjusted EBITDA CAGR of 15.7% from 2023 through TTM), and a retiring single owner. Gross margins have averaged a healthy 29.9% and the recurring-maintenance mix provides a base of repeat work from HOAs and property managers that softens the cyclicality normally associated with construction contracting.

Why we like it

Earnings quality is real and growing: $3.06M adjusted EBITDA on $19.7M revenue, with EBITDA compounding at 15.7% from 2023 to TTM and gross margins averaging a solid 29.9%. The $16.5M open contract backlog extending into 2027 gives a buyer rare forward visibility for a contracting business.
The moat is operational, not glamorous: a well-maintained fleet, cross-trained crews, and established relationships with GCs, developers, HOAs and municipalities within a 100-mile radius. Asphalt paving and maintenance is a sticky, locally-scaled trade where reputation, bonding capacity, and equipment depth create real barriers to new entrants.
Market tailwinds favor the asset: roads, lots, and sidewalks degrade on a fixed schedule and must be maintained regardless of the economy. The 45% maintenance mix plus regional population and renovation growth and open DOT/municipal spending give multiple independent demand drivers.
Operator advantage is unusually clear: management says existing fleet, crews, and supervisors can absorb a 20-30% revenue increase without significant capex. A buyer who simply fills that capacity converts idle overhead into high-incremental-margin earnings.

How to improve it

Convert one-off maintenance customers into multi-year maintenance agreements with the existing HOA, property manager, and GC base. Locking in recurring crack-seal, striping, and resurfacing contracts raises the quality of earnings and makes the whole business more valuable at exit.
Fill the existing 20-30% capacity slack the owner identified by adding a dedicated estimator and salesperson. Because the fleet and crews are already paid for, incremental jobs drop to the bottom line at far higher margins than the blended 8% EBITDA figure suggests.
Pursue municipal and DOT contract work, which the listing flags as untapped. Government paving budgets are counter-cyclical and bond-backed, and winning even a couple of recurring public contracts would diversify away from private development risk.
Bring subcontracted scopes like curb & gutter in-house to capture the margin currently leaking to subs. On a $19.7M revenue base, recapturing even a few points of subcontracted work meaningfully lifts gross profit.
Expand the service radius selectively into adjacent states where current bonding and equipment can be mobilized. A second yard or satellite crew would extend the same cost structure over a larger addressable market.
Tighten job costing and fleet utilization tracking per crew and per project. Heavy-construction margins live or die on equipment hours and crew productivity, and small improvements in scheduling and asphalt material procurement compound across the whole book.
Build a bench of field supervisors and a general manager before closing so the business is not dependent on the retiring owner. De-risking the org chart protects the backlog and supports a cleaner eventual resale.

Diligence notes

Verify the backlog quality: confirm the $16.5M open contract value is contracted versus pipeline, review margin assumptions on each major job, and check for any fixed-price exposure to asphalt and oil input cost inflation. Backlog is only as good as its signed terms and completion certainty.
Scrutinize the owner-related lease on the 8,400 sq ft facility and 3-acre parcel held by an affiliated entity. Nail down whether the price contemplates buying the real estate or a long-term lease, what market rent is, and whether reported EBITDA reflects an arm's-length rent charge.
Assess customer and project concentration across the GC, developer, HOA, and municipal mix. With 55% of revenue in paving and site development, a few large projects rolling off could swing results, so understand the revenue durability behind the 15.7% EBITDA CAGR.
Inspect the equipment fleet age, maintenance records, and remaining useful life, plus any associated debt or leases. The fleet is central to the thesis of absorbing 20-30% more volume without capex, so confirm that claim is credible and not deferring near-term replacement spend.
Confirm bonding capacity, licensing, and key-employee retention. In heavy construction the surety relationship and the superintendents who run crews are often the real assets, and both must survive the ownership change and the owner's departure.

Source

Originally listed on BizBuySell. View original listing →