Project Granite, Vertically Integrated Asphalt & Concrete Manufacturer, Flagler County FL

$859K

SDE

8.7x

Multiple

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Full Editorial Writeup

Project Granite is a vertically integrated asphalt and concrete manufacturing and paving company operating in the Central Florida market out of Flagler County. The business combines its own production of asphalt and concrete with paving services, which means it captures margin at both the material and installation layers rather than buying product from a third-party plant. The asking price reportedly includes an 8-plus acre manufacturing plant, so a meaningful portion of the $7.5M is tied to real estate and production equipment rather than pure operating goodwill.

The company serves one of the faster-growing regions in the country. Central Florida's population and housing growth drives sustained demand for roads, driveways, parking lots, subdivisions, and commercial pads. As an in-market producer, Project Granite benefits from the freight economics of concrete and asphalt: these are heavy, low-value-per-pound materials where local production near the jobsite is a structural cost advantage over distant competitors.

At $858,748 of cash flow against a $7.5M ask, the headline multiple of roughly 8.7x is steep for a construction business, but that figure is inflated by the inclusion of the plant, land, and production equipment. On a clean operations-only basis, backing out the real estate and hard-asset value, the effective multiple on the operating cash flow is likely far lower, which is where the real underwriting work sits.

Why we like it

Vertical integration is the core of the thesis: producing your own asphalt and concrete and then self-performing the paving means capturing material margin plus installation margin on the same job. That structure typically produces higher and more defensible gross margins than a pure paving contractor buying product from a competitor's plant.
The 8-plus acre plant and land give this deal a hard-asset floor that pure-service construction firms lack. Much of the $7.5M ask is collateralizable real estate and production equipment, which improves lender appetite and protects downside if the operating business softens.
Central Florida is a genuine growth market with sustained road, residential, and commercial construction demand. Heavy materials like concrete and asphalt reward local production because freight kills the economics of shipping product far, so an in-market plant enjoys a structural moat against out-of-region players.
At $858,748 in cash flow with owned production assets, this is a scarce combination: a profitable operator and a physical materials plant in one package. Most buyers have to choose between an asset-light paving crew or a capital-heavy plant, and this bundles both.

How to improve it

Separate the operating business from the real estate by valuing the 8-plus acre parcel independently and considering a sale-leaseback or holding the land in a separate entity. This clarifies the true operating multiple, frees up capital, and can materially improve levered returns.
Push plant utilization by selling asphalt and concrete to third-party contractors, not just self-performed jobs. If the plant has spare capacity, wholesale material sales convert a fixed-cost asset into an additional revenue stream at attractive incremental margins.
Pursue municipal and DOT paving contracts, which offer larger, repeatable, credit-worthy work in a fast-growing county. Getting prequalified for public bids diversifies away from cyclical private development and smooths the revenue base.
Build a preventive maintenance and repaving program targeting existing commercial lots, HOAs, and property managers. Sealcoating and resurfacing on a scheduled cycle creates the closest thing this business has to recurring revenue and keeps crews productive between large jobs.
Tighten job costing and estimating with proper software so every bid reflects true material, labor, and equipment cost. Materials producers with paving arms often leak margin on underpriced jobs, and disciplined pricing is the fastest path to margin expansion.
Invest in the sales function to capture the region's homebuilder and general-contractor volume with dedicated account coverage. A relationship-driven pipeline with the top three or four builders in the county can lock in recurring project flow.
Audit the fleet and plant equipment for deferred capex and replacement timing before scaling volume. Understanding the real maintenance and reinvestment schedule protects margins and prevents a post-close capital surprise.

Diligence notes

Revenue is not disclosed, which is a major gap on an 8.7x cash-flow ask. Get full P&Ls and tax returns to establish revenue, gross margin, and how much of the $858,748 is owner add-backs versus true operating earnings.
Break out exactly what the $7.5M includes: real estate value, plant and production equipment value, fleet, and inventory versus operating goodwill. The effective operating multiple depends entirely on this allocation, and you need an independent appraisal of the land and plant.
Scrutinize customer and project concentration. Paving and materials revenue can hinge on a handful of large builders or GCs, so map the top ten customers, contract backlog, and how much repeat versus one-off work the business actually carries.
Assess the equipment and plant condition, permits, and environmental compliance. An asphalt and concrete plant carries air permits, emissions, aggregate handling, and potential contamination liability, so confirm all environmental permits are current and order a Phase I on the property.
Verify labor availability and workforce stability given the tight Florida construction labor market. Understand crew tenure, key-person dependence for plant operation, licensing, and whether the seller's relationships transfer post-close.

Source

Originally listed on BizBuySell. View original listing →