Featured Business: Industrial and construction rentals and sales

Featured Business: Industrial and construction rentals and sales

Welcome to this edition of the PowerPlay newsletter, where we spotlight a company that rents and sells various mats, trucking services, site preparation, off-loading and loading out creates a seamless solution for most projects. This is a distinguished player in the construction and industrial services sector. Established in 2004, this business has carved a niche in providing high-quality mat rental services, showcasing remarkable growth and operational excellence. With a legacy of nearly two decades and a strategic approach to service and innovation, this rental company stands as a testament to sustainability and market demand. This company is located in Alabama and services the following areas including Alabama, Georgia, Florida, and Tennessee.

TL;DR

• Impressive Financial Trajectory: Revenue witnessed a significant jump from $1.08 million in 2021 to $1.9 million in 2023; EBITDA for 2023 stood at a robust $672k.

• Strategic Ownership and Management: The business benefits from dedicated leadership and specialized management roles, including Operations and Sales, contributing to its streamlined operations and growth.

• Solid Market Positioning: Located on a 5-acre site, the company boasts a strong base of over 3000 customers, split evenly between repeat and new clients.

• Unique Service Offerings: Specializes in vertical integration through a vast inventory of various mats, warehousing in locally owned yards, trucking service, site preparation, off-loading, and loading out, ensuring a seamless solution for projects.

• Service Flexibility: Offers rental, rental purchase, and lease to own options, along with 24/7 access to matting consultants for tailored, results-oriented program design.

• Future Prospects and Sale Considerations: The owner's readiness for retirement coupled with openness to stay on board post-sale presents a unique opportunity for growth and transition. The introduction of new service lines and in-house production capabilities signal substantial expansion potential.

• Power Play Highlight: This edition's Power Play focuses on this l Company's strategic pivot towards in-house production, poised to enhance profitability and operational efficiency.

• Ideal for: Entrepreneurs seeking a well-established business with strong growth prospects, hands-on operational involvement, and expansion opportunities in the industrial services sector.

Financials at a Glance

• Revenue Growth: Demonstrated substantial growth, escalating to $1.9 million in revenue by 2023, underlining the company's successful market strategies and client acquisition efforts.

• Net Earnings: EBITDA for 2023 was an impressive $672k, reflecting the company's operational efficiency and financial health.

Operational Insights

• Business Model: Excelling in rental and sale of high-quality mats, This Company stands out for its customer satisfaction and operational excellence, managing everything from bookkeeping to strategic expansions.

• Team Structure: Comprises 4 full-time employees including key managerial roles in operations and sales, augmented by part-time support, ensuring optimal performance and service delivery.

SWOT Analysis

• Strengths: High service quality, experienced leadership, and cost-effective logistics partnerships.

• Weaknesses: Dependence on external production of mats.

• Opportunities: Diversification into manufacturing, offering potential for significant revenue and margin growth.

• Threats: Seasonal variability affecting demand and operations.

Future Prospects and Strategy

• Growth Potential: In-house production and service line expansion offer avenues for revenue growth and operational scalability.

• Sale Considerations: The owner's strategic approach to the sale includes potential for seller financing and an earn-out arrangement, ensuring a smooth transition and continued business success.

Power Play

This week's Power Play underlines This Company's strategic foresight in considering in-house production of mats and pallets, setting the stage for operational efficiencies, cost reductions, and market differentiation.

This is a good fit for you if…

1. You're attracted to established, growth-oriented businesses with a solid financial track record and a clear path to expansion.

2. Operational involvement and strategic planning in a niche market excite you, offering hands-on management and development opportunities.

3. Expansion into manufacturing aligns with your business vision, especially in sectors with high demand and repeat clientele.

4. You appreciate a business with strong foundations in customer service, operational excellence, and potential for leveraging new service lines for growth.

This opportunity isn't just about acquiring a thriving business—it's about steering This Company towards new horizons of success and innovation in the industrial services sector.

Interested in this deal?

Contact [email protected] to learn more!