Pre-Fab Metal Building Assembler, 66-Year Nebraska Contractor

$3.8M

Revenue

$643K

SDE

3.8x

Multiple

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Full Editorial Writeup

This is a 66-year-old Nebraska contractor that assembles pre-fabricated metal frame structures: grain silos, pole barns, steel buildings, storage and garages, and airplane hangars. Founded in 1960 and based in Grand Island in South Central Nebraska, the business serves a diverse repeat client base spanning farmers and ranchers, commercial building owners, schools, government agencies, and even the FAA. It is a recognized top installer and is regularly recommended by its customers and by Behlen Manufacturing, a well-known metal building manufacturer, which functions as a de facto referral engine.

The economics are project-driven. Average jobs run $40,000 to $500,000 and are completed in under two weeks, on roughly $3.8m in revenue and $643k in cash flow. Overhead is unusually lean at $1,500/month for a small office, and the operation runs on 8 full-time employees including a long-tenured General Manager, an office administrator, and 6 field laborers. The deal transfers roughly $1.1m in hard assets ($421k vehicles, $646k machinery and equipment), plus $2.2m in work in progress and a $1.57m pipeline.

The standout structural feature is that the business is manager-run. The owner checks in only twice per week and the GM handles day-to-day operations, which makes this closer to a semi-passive holding than a typical owner-operator contractor. The seller is retiring and is willing to carry $450,000 of the $2.425m price, a meaningful signal of confidence in continuity after close.

Why we like it

Earnings quality is solid for a contractor: $643k cash flow on $3.8m revenue is a ~17% margin, supported by extraordinarily low fixed overhead of $1,500/month. Fast project cycles of under two weeks mean capital turns quickly and the business is not sitting on long, cash-draining jobs.
The moat is relationship and reputation driven. Sixty-six years of operating history, a repeat client base across agriculture, commercial, schools, government and the FAA, and active referrals from Behlen Manufacturing give this business a credibility that a new entrant cannot buy. Metal building assembly is skilled trade work where track record wins bids.
Backlog visibility is unusually strong. The deal comes with $2.2m of work in progress and a $1.57m pipeline, which together approach a full year of revenue already identified. That de-risks the first 12 months of ownership more than most SMB contractor deals can claim.
The manager-run structure is a genuine operator advantage. A long-tenured GM already runs operations while the owner checks in twice a week, so a buyer can step into a cash-flowing asset without needing trade expertise on day one, then focus energy on growth rather than firefighting.

How to improve it

Formalize the Behlen relationship into a documented referral pipeline. Right now the vendor recommendations appear informal and personal to the seller. Signing a preferred-installer arrangement or co-marketing agreement would lock in lead flow and protect against those referrals walking with the retiring owner.
Expand the service territory, which the listing explicitly notes has no restrictions. With a proven crew and fast job cycles, adding a second field crew to reach into neighboring counties or states could grow revenue without proportionally growing overhead given the $1,500/month cost base.
Build a maintenance and inspection recurring revenue line on the installed base. After 66 years there is a large population of structures this firm has erected. Offering annual inspection, re-roofing, and repair contracts would layer predictable revenue on top of lumpy project work.
Tighten project management and estimating systems before the seller leaves. With average jobs ranging $40k to $500k, margin discipline on materials and labor is where profit is made or lost. Documenting the GM's bidding methodology reduces key-person risk and protects margins.
Add a dedicated sales and business development function. The business currently relies on repeat clients and vendor referrals with no apparent proactive sales effort. A single quota-carrying salesperson targeting agricultural co-ops, municipalities, and commercial developers could convert the existing brand into faster pipeline growth.
Reduce customer concentration risk by broadening the government and FAA contract base. These relationships are attractive and sticky, but a buyer should pursue registration on additional government vendor lists and GSA-type schedules to diversify and stabilize the mix of higher-value institutional work.

Diligence notes

Verify the $2.2m WIP and $1.57m pipeline in detail. Confirm which projects are under signed contract versus verbal or estimated, what deposits have been collected, and the true gross margin embedded in each. A pipeline number is only as good as the contracts and margins behind it.
Stress-test the GM and key-person dependency. The entire absentee model rests on one long-tenured General Manager. Understand their compensation, whether they have equity expectations, retention risk after a sale, and whether a non-compete or stay bonus can be secured before close.
Assess cyclicality and end-market exposure. Grain bins, pole barns and agricultural structures are tied to farm income and commodity cycles, which are discretionary capex for farmers. Review revenue by year across the last full cycle to see how the business held up in weak ag years.
Reconcile the asset values and confirm ownership. The listing cites $421k in vehicles and $646k in machinery and equipment. Verify these are owned free and clear, obtain a fixed asset schedule with ages and condition, and confirm no liens or leases are attached that would reduce transferred value.
Analyze the seller-carry terms and true owner earnings. The $450k seller note is a positive signal, but confirm the interest rate, term, and any performance conditions. Also normalize the $643k cash flow for the GM's cost, owner add-backs, and whether the twice-weekly owner contributed anything requiring replacement.

Source

Originally listed on BizBuySell. View original listing →