Pre-Fab Building Assembler, 66-Year Nebraska Steel Structure Contractor

$3.8M

Revenue

$643K

SDE

3.8x

Multiple

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Full Editorial Writeup

This Grand Island, Nebraska contractor has assembled metal frame structures since 1960, making it one of the longest-tenured operators in its niche. It erects grain silos, pole barns, steel buildings, storage structures, garages, and airplane hangars for a diverse base of farmers, ranchers, commercial owners, schools, government agencies, and even the FAA. Average projects run from $40,000 to $500,000 and typically wrap in under two weeks, giving the business fast cash conversion and limited exposure to any single job stalling.

The operation runs lean with just 8 full-time employees (a GM, an office administrator, and 6 field laborers) and an almost comical $1,500 per month in overhead. It is effectively absentee-run: the GM handles day-to-day operations while the owner checks in twice a week. The business carries strong forward visibility with over $2.2 million in work-in-progress and $1.5 million in pipeline, plus $1.1 million in assets and a referral relationship with world-renowned vendor Behlen Manufacturing.

At $2,425,000 against $643,185 in cash flow, the deal prices at 3.77x. The retiring seller is carrying $450,000, a meaningful signal of confidence and a lever to reduce the buyer's day-one cash outlay. The 66-year track record and agricultural-and-institutional customer mix are the core of the story here.

Why we like it

Earnings quality is anchored by $643k of cash flow on $3.8m revenue, a 17 percent margin that is strong for assembly-style construction. The sub-$18k annual overhead and fast two-week project cycle mean cash converts quickly and working capital does not get trapped in long-tail jobs.
Durability shows up in 66 years of continuous operation and a referral pipeline from Behlen Manufacturing, a recognized vendor whose recommendations function as a low-cost lead channel. The diverse customer mix of ag, commercial, schools, government, and FAA spreads demand across cycles rather than concentrating it in one segment.
Forward visibility is unusually good for a project business: $2.2m in WIP and $1.5m in pipeline together exceed a full year of revenue already contracted or in play. That cushions the typical lumpiness of construction and gives a buyer a known runway into year one.
The operator advantage is real because the business is already manager-run with an in-place GM handling operations and the owner present only twice a week. A buyer inherits a functioning management layer rather than a job, which protects the multiple and makes a financed or semi-passive hold far more feasible.

How to improve it

Lock in the GM with an employment agreement and incentive comp tied to margin and on-time completion before close. The entire absentee thesis depends on this one person, so retention is the first 90-day priority, not an afterthought.
Formalize the Behlen referral relationship into a documented co-marketing or preferred-installer arrangement. Right now it appears to be goodwill-driven; converting it to a structured channel protects a lead source that would be expensive to replace.
Build a simple recurring revenue layer through inspection and maintenance contracts on structures the business has already erected. Grain bins, hangars, and steel buildings need periodic service, and a maintenance plan would add margin and smooth the project lumpiness.
Tighten project accounting and WIP reporting so gross margin by project type (hangars vs pole barns vs grain bins) is visible. Knowing which of the six structure categories earns the best margin lets a buyer steer the sales mix toward the most profitable work.
Expand field labor capacity carefully to capture more of the pipeline. With only 6 field laborers, crew availability may be the real ceiling on revenue, so adding a second crew could unlock backlog that is already in hand.
Invest in a modern website and local SEO targeting ag and institutional buyers across the broader Plains region. A 66-year-old firm likely under-markets online, and even modest digital lead generation could extend reach beyond the current geography.
Pursue government and FAA contract vehicles more systematically given the existing track record with both. Public-sector work tends to be stickier and less cyclical, and prequalifying for recurring bid lists would diversify demand away from farm economics.

Diligence notes

Scrutinize the $2.2m WIP and $1.5m pipeline for signed contracts versus verbal or estimated work. Confirm deposits collected, completion stages, and whether any projects carry margin risk or fixed-price exposure to steel cost inflation.
Verify the GM's tenure, compensation, and intentions post-close, since the business is explicitly absentee and the GM is the operating engine. A GM departure would materially change the deal and the valuation, so a signed stay agreement should be a closing condition.
Analyze customer and revenue concentration across the farmer, commercial, school, government, and FAA segments. Ag demand is cyclical and tied to crop prices and farm capex, so understand how much revenue depends on grain-bin and farm work versus more stable institutional jobs.
Confirm the composition and condition of the $1.1m in assets and whether equipment is owned free and clear. Verify that the quoted $1,500 per month overhead is complete and not masking expenses the owner personally absorbs or runs elsewhere.
Examine the seller note terms: the $450,000 carry is a positive signal, but confirm interest rate, amortization, subordination to any senior lender, and whether it is contingent on performance. This structure materially affects day-one cash and downside protection.
Validate the 17 percent margin against trailing 2-3 years to confirm it is stable and not a single strong year. Construction cash flow can swing with a few large jobs, so look for consistency and seasonality in the monthly detail.

Source

Originally listed on BusinessBroker.net. View original listing →