Luxury Outdoor Design-Build Contractor, Collier County FL, Est. 2006

$7.0M

Revenue

$1.4M

SDE

3.5x

Multiple

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Full Editorial Writeup

This is a design-build contractor specializing in luxury outdoor living spaces for affluent homeowners across Southwest Florida, operating out of Collier County since 2006. The business generates roughly $7M in annual revenue with $1.37M in seller cash flow and $1.27M in EBITDA, putting margins in the high teens on a project-based construction model. The clientele skews high-net-worth, which is exactly the profile you want in a market like Naples and the broader Collier County coastline where outdoor amenities (pools, kitchens, hardscapes, pergolas) are table stakes for premium homes.

The company has nearly two decades of operating history and a reputation anchored in a wealthy, design-driven market. Outdoor design-build in Florida benefits from year-round building weather, a steady stream of relocating affluent buyers, and renovation demand on an aging inventory of luxury homes. The asking price of $4.75M against $1.37M cash flow pencils to about 3.47x, which is reasonable for a sub-$10M specialty contractor with SBA financing available.

The caution is that this is discretionary, project-based revenue. Luxury outdoor construction is a want, not a need, and it is the first line item deferred when high-end buyers tighten up. There is no contracted or recurring revenue base here, so every dollar of next year's sales has to be re-won through the backlog, referrals, and a sales engine that may currently lean heavily on the owner.

Why we like it

Earnings quality is strong for the category, with $1.37M cash flow and $1.27M EBITDA on $7M revenue, a tight spread that suggests clean add-backs rather than aggressive owner adjustments. Margins near 18 percent on project-based construction are above average and point to real pricing power in a luxury niche.
The moat is reputation and location. Nearly two decades operating in Collier County, one of the wealthiest markets in Florida, builds referral networks and designer relationships that a new entrant cannot replicate quickly. Luxury clients buy on trust and portfolio, which protects pricing.
Southwest Florida has durable tailwinds from affluent in-migration, year-round construction weather, and an aging stock of high-end homes needing outdoor upgrades. Pools, outdoor kitchens, and hardscapes are now standard expectations for premium properties in this market.
The 3.47x multiple with SBA financing available is attractive for a cash-flowing specialty contractor. A buyer can put down a modest equity check, let the business service the debt, and still clear meaningful owner earnings in year one.

How to improve it

Audit the sales pipeline and reduce owner dependence in the first 90 days. If the owner is personally closing most luxury jobs, document the process, hire or promote a sales lead, and build a referral system with designers, architects, and builders so revenue survives the transition.
Build a recurring revenue layer through maintenance and service contracts. Outdoor kitchens, pools, water features, and hardscapes all need upkeep, and converting past clients into annual service agreements adds predictable, higher-margin revenue to a lumpy project base.
Formalize a backlog and deposit structure to smooth cash flow. Require larger upfront deposits and progress billing, and track a rolling pipeline so you can forecast revenue and manage labor before a downturn hits discretionary spending.
Expand the geographic footprint along the affluent Gulf Coast. The same playbook applies in Naples, Marco Island, Bonita Springs, and Sarasota, so a second crew or a satellite presence can grow revenue without rebuilding the brand from scratch.
Tighten gross margins through better subcontractor management and materials purchasing. In project construction, a few points of margin on $7M is six figures, so renegotiating supplier terms and standardizing scopes directly drops to the bottom line.
Invest in a portfolio-driven marketing presence. High-end clients research visually, so professional photography, a strong website, and a curated social presence showcasing completed projects can lift lead quality and justify premium pricing.

Diligence notes

Verify the owner's role in sales and project delivery. If the principal is the primary rainmaker and designer, model the cost and risk of replacing that function, because revenue could stall post-close without a transition plan and a sales successor.
Pull three to five years of project-level revenue and margin data to assess cyclicality and customer concentration. This is discretionary luxury spend, so understand how the business performed in 2008-2010 and whether a handful of large jobs drive the numbers.
Scrutinize the backlog and pipeline at close. A contractor is only as good as its signed contracts and deposits, so confirm the value, timing, and deposit status of committed work so you are not buying a business with a hollow pipeline.
Confirm licensing, insurance, workers comp, and any open warranty or lien exposure. Florida construction carries real liability, so review permits, certificates of completion, and any litigation history tied to prior projects.
Reconcile the $1.37M cash flow to tax returns and bank statements and scrutinize add-backs. The tight EBITDA-to-SDE spread is encouraging, but verify that owner compensation, personal expenses, and one-time items are correctly normalized before trusting the 3.47x multiple.

Source

Originally listed on BizBuySell. View original listing →