This is an opportunity to acquire a specialized Bridge and Elevated Highway Commercial Construction company active across Ontario.
The company specializes in foundation construction for roads and bridges. The company has operated for over 30 years and has established a strong reputation amongst its clientele. Key clientele includes the Canadian Government and established commercial contracting companies.
The company primarily services the foundations of roads and bridges using the H-pile driving and sheet piling technique. Secondary services include dredging, dam installation, retaining wall installation, boat ramp installation, driveway installation and shoreline improvement.
The company is incredibly agile and can scale operations up or down depending on demand. A lean operating model has allowed the business to carry out projects across Ontario; the business is not limited by location. Leveraging its established client relationships, the business can reliably generate recurring construction contracts.
Increasing population growth will expedite the wear and tear of roads and bridges, creating new construction opportunities and stable cash flows. The commercial roads and bridges niche has moderate competition and high barriers to entry in the form of high startup costs. Stable growth opportunities stimulate the roads and bridges industry.
The industry is forecasted to grow revenue annually at a CAGR of 2%, reaching ~$4.9 billion in total revenue by 2028.
Due to a relatively high level of owner involvement, this opportunity is relevant for businesses or individuals with extensive construction experience. The company operates out of a facility located approximately 1.5 hours north of downtown Toronto in a rural setting. The asking price is for a stock/share transaction with a normal amount of working capital on a cash-free, debt-free basis. Normalized EBITDA and Revenue for FYE 2023 are below.
