Download July 2002 - Gottesman Company

GOTTESMAN COMPANY & Cooperating Intermediaries
Seller Profile
United States, Canada & Europe
Since 1985
America’s International Network of M&A Business Brokers
Acquisition Opportunity
Commercial Plumbing & Piping Contractor
Business Description:
This is a unique opportunity for a buyer to acquire a leading specialty plumbing contractor in a growing
market in the Southeast U.S. Founded in the 1970’s, the Company has evolved into a leader in its
market as evidenced by its revenue and profit growth. Well known and recognized for its expertise on
large, complex commercial projects, the Company achieved record revenue and profitability in 2015. The
Company has a diverse mix of commercial, residential and service capabilities that provide a compelling
offering to developers and general contractors in the markets it serves. Also, the diverse mix of work
among several different industry verticals helps to mitigate cyclicality risk in end markets. We believe
there is an opportunity for meaningful value creation in a rapidly growing market, especially when
combined with an existing operating platform with infrastructure and/or growth capital available to invest
in new markets or new capabilities.
Distribution:
With a resume of construction experience that includes over 10,000 jobs; our client has emerged as a leader in hi-rise condominium and hotel
projects. The Company has developed a system of managing projects that ensures the customer and general contractor receive the highest level
of quality workmanship delivered in a consistent and timely fashion. The Company has been involved in some of the most successful high-end
commercial hi-rise developments in the Southeast. The new construction landscape in the Company’s service area does not show signs of
slowing and, as of December 31, 2016, contracted backlog was approximately $25.8MM.
Operational Strengths:
Our client is proficient in both service/repair and in a variety of areas in new construction including: residential construc tion, remodels, tenant
build-outs, office buildings, medical research buildings, schools, shell office buildings and more. The Company has earned a reputation as an
elite subcontractor through years of recruiting and retaining some of the industry’s finest project managers, general foremen and laborers. For
decades and multiple repeat jobs, the Company has developed strong relationships with a number of large developers and general contractors
which has led to repeat business. The service/repair department provides consistent revenue stream. The service department performs
residential, commercial and industrial repairs and offers emergency service 24 hours a day, every day of the year. The service department has
been growing consistently over the years with 2015 and 2016 revenue of approximately $6.1MM and $6.0MM, respectively. The company has
a senior management team with over 180 years of combined construction management experience. In addition, the Company has de veloped
solid bench strength behind each member of the senior management team with a thoughtful succession strategy in place.
The Transaction:
The Company is interested in exploring strategic alternatives for the business, including a potential sale. Ownership is interested in a
transaction that enables certain shareholders to take chips off the table and diversify their net worth. In addition, a buyer with capital and/or
complementary contracting services could help position the Company for continued growth with an opportunity to build on its w ell-established
brand in the Southeast market. There are many ways to grow the Company both geographically as well as expanding capabilities into other
complementary areas like mechanical services. In 2015, the Company was in the middle of completing the largest project in its history, which
accounted for the large increase in revenue.
Financial Summary ($ millions, unless noted)
Revenue
Adjusted EBITDA
Location
Financials
Southeast US
Reviewed
2016
2015
2014
2013
$ 18.6
$ 39.4
$ 23.1
$ 12.1
$ 613K
$ 4.4
$ 2.3
$ 432K
Other Highlights
Management
Team in Place
Yes
Years in
Business
SIC Classification
45 +
1711/1796
Direct All Inquiries to:
Gottesman Company
Refer to: S-2460-10 RS
Tel: 212-330-8010 Fax: 646-434-4557
E-mail: [email protected]
4-3-17
Gottesman Company – 200 East 71st Street – New York, NY 10021
www.Gottesman-Company.com
This document is confidential and contains proprietary information belonging to Gottesman Company. It is unlawful to reproduce or
distribute without express written consent of Gottesman Company. No warranties or representations are made in connection with the
information provided herein. Gottesman Company is an M&A Business Broker, whose mission is to locate opportunities and introduce
participants.