Make Millions Moving Dirt in Michigan - Acquisitions Anonymous episode 159

Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA), and Mills Snell (@thegeneralmills)  talk about a Non-Union Heavy Civil Excavation Contractor in Michigan. We dig into the operations, CapEx dynamics that you should consider, and we dig into the Union vs Non-Union tradeoff.Would we buy this? Tune in to find out.Company: Non-Union Heavy Civil Excavation ContractorLocation: MichiganTTM Revenue 09-22 -  $ 10,213,927  |  Adj EBITDA 09-22 -  $ 3,142,246Equipment value   $ 4,000,000  |  Real Estate Value  $ 700,000Asking Price: Undisclosed-----Thanks to our sponsors! CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.----- Show Notes:(00:00) - Introduction(00:55) - Our Sponsor is CloudBookkeeping.com(02:28) - Deal & financials: Non-Union Heavy Civil Excavation Contractor in Michigan(03:15) - What is water skiing?(03:53) - How does this deal work?(05:29) - Red flag. Is it a deal-breaker?(06:44) - What are our first thoughts?(08:33) - Mike’s take on this deal(09:49) - Why should we give this deal a shot? Mills’ take(11:44) - What are the operative dynamics around the heavy equipment part of the CapEx?(15:00) - Why is this business easier to run when interest rates are lower?(15:50) - Are Unions that bad? What are the ups and downs of Union involvement?(21:41) - How much involvement is required from the owner in contractor based- businesses?(25:06) - What’s the catch with C-Corps & S-Corps and Real Estate? Is the hype to flip your company to an S-Corp advantageous?(26:30) - What fees should you pay to avoid future problems?(28:30) - Would we buy this? -----Additional episodes you might enjoy:#158 - $1.2mm revenue Court Maintenance Company for Sale! #157 - Make a $1mm/yr with a Language School#156 - 60% Profit Margin Amazon Online Community for Sale#155 - A $3mm profit-a-year water delivery business!#154 - A Truck Driver School for sale in Texas#152 - Should we buy this Ambulance company?#150 - Let’s buy a medical staffing business#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse PujjiSubscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [email protected]

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