Municipal Engineering & Aquatic Design Firm, 47-Year Arkansas Practice

$1.8M

Revenue

$998K

SDE

4.0x

Multiple

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Full Editorial Writeup

This multidisciplinary engineering & architecture firm has deep municipal relationships, recurring public-sector revenue, specialized aquatic design expertise, and nearly 50 years of operating... Businesses Franchises Brokers Loading... Trusted Municipal Engineering & Aquatic Design Co. Little Rock, AR (Pulaski County) Asking Price:$4,000,000 Cash Flow (SDE):$998,033 EBITDA:Not Disclosed Gross Revenue:$1,800,000 Established:1978 Trusted Municipal Engineering & Aquatic Design Co. Business Description Trusted Municipal Engineering & Aquatic Design Co. This multidisciplinary engineering & architecture firm has deep municipal relationships, recurring public-sector revenue, specialized aquatic design expertise, and nearly 50 years of operating history.What makes this opportunity special includes:Highly Recurring Public-Sector Revenue: A high percentage of revenue is generated from Master Service Agreements and recurring municipal engagements.This small firm is a multidisciplinary powerhouse: Experience made a difference as the team offers integrated planning, engineering, architecture, aquatics, and construction administration services to create a one-stop solution for municipal clients.Specialized Aquatic & Recreation Expertise:The firm is widely recognized for its niche capability and extensive portfolio of aquatic centers, community centers, sports complexes, and recreation facilities across the state.Experienced Leadership Team & Transition Support: The Seller committed to remaining actively involved for 3–5 years following closing.NDA is required to secure the comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners. Ad#:2529793 Detailed Information Employees: 7 Full-time Facilities: The facility is headquartered in a centrally located 3,500-square-foot space with a monthly rent of approximately $2,500. Competition: The Company competes effectively against both larger and smaller organizations through a combination of technical expertise, principal-level involvement, responsiveness, and operational flexibility by providing a broad range of integrated professional services on a single platform. Growth & Expansion: The Company is well-positioned to benefit from continued investment in municipal infrastructure. Financing: The Seller is willing to consider proposals, provided they include a substantial down Support & Training: The Seller has indicated a willingness to remain actively involved with the business for an extended period to ensure the Company’s legacy continues. Reason for Selling: This is a planned succession strategy. Business Location Location: Little Rock, AR Financial Benchmarks for Arkansas Architecture and Engineering Firms Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Demographic Information for Little Rock Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Terie Salinas ProNova Partners View My Listings Phone Number 844-559-1107 Voice only (no SMS) Ad#:2529793 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Learn how to secure financing and get prequalified before buying a business. Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Business Listed By: Terie Salinas ProNova Partners View My Listings Phone Number 844-559-1107 Voice only (no SMS) Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. 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Why we like it

Earnings quality is the headline: $998K of SDE on $1.8M of revenue is a 55% margin, which for a 7-person services firm implies premium billing rates and minimal overhead beyond a $2,500-per-month office. That kind of cash conversion is rare and gives a buyer real cushion to absorb debt service and a wage for a replacement principal.
The moat is 47 years of municipal relationships plus a specialized aquatic and recreation niche that few firms in Arkansas can match. Public agencies favor incumbents with a track record and standing Master Service Agreements, so switching costs and procurement inertia protect the revenue base.
Demand is genuinely recession resistant. Municipal infrastructure, recreation facilities, and aquatic centers are funded by public budgets and bonds rather than discretionary consumer spending, so the work does not evaporate in a downturn the way private commercial design does.
The operator advantage is a rare 3 to 5 year seller commitment. In principal-driven engineering firms the biggest risk is the relationships walking out the door; an owner willing to stay half a decade gives a buyer time to build direct client trust and license a second signing principal.

How to improve it

Map every revenue dollar to its source in the first 90 days and quantify what share sits under Master Service Agreements versus one-off project work. Renew or extend the recurring MSAs early so the recurring base is locked before the seller's eventual exit and before the next municipal budget cycle.
Formalize a succession plan for professional licensure and stamping authority. Identify or hire a licensed PE or architect who can sign work, because in a 7-person firm the seller's stamp and reputation are likely load-bearing and cannot transfer with goodwill alone.
Expand geographically into adjacent states or counties using the aquatic and recreation niche as the wedge. The specialized portfolio travels well, and municipal work in neighboring markets lets you grow revenue without diluting the high-margin core.
Build a documented business development pipeline and CRM for RFP tracking. A 47-year firm this small has likely relied on inbound relationships, so systematizing proposal generation converts a personality-driven book into a repeatable growth engine.
Raise utilization and consider modest headcount additions in the highest-margin service lines. With only 7 employees, adding one or two producers against the existing overhead and MSA demand should drop straight to the bottom line.
Cross-sell the full integrated stack (planning, architecture, aquatics, construction administration) into existing municipal accounts. Clients already trust the firm for one service; capturing more of each project's lifecycle raises revenue per account with no new client acquisition cost.

Diligence notes

Quantify the recurring revenue claim precisely. Get the actual MSA contracts, their remaining terms, renewal history, and the percentage of the $1.8M that is truly recurring versus project-based, because the entire durability thesis rests on how sticky that public-sector revenue really is.
Assess key-person risk in the SDE. A 55% margin on 7 people usually means the seller is a top producer and rainmaker, so break down how much of the $998K depends on the owner's personal billings, stamp, and relationships versus the team.
Verify professional licensure and who holds stamping authority. Confirm which licensed PEs or architects remain post-close, whether the firm retains its qualifications-based standing with agencies, and what happens to bonding or prequalification status when ownership changes.
Check client concentration across municipalities. Pull the top accounts by revenue and confirm no single city or agency dominates the book, since losing one large municipal relationship in a firm this size could materially impair cash flow.
Confirm the structure and cost of the 3 to 5 year seller commitment. Understand whether that involvement is compensated, contractual, and tied to earnouds, and model what the business looks like on the day the seller finally exits.
Reconcile the reported $998K cash flow to tax returns and add-back schedules. Request three years of financials and the CIM, and scrutinize the add-backs to confirm the margin is real and not inflated by aggressive owner adjustments.

Source

Originally listed on BizBuySell. View original listing →