excavation company for sale in NY

Discussion in 'Heavy Equipment & Pavement' started by godzilla, Mar 2, 2007.

  1. godzilla

    godzilla LawnSite Senior Member
    Posts: 401

    One of my good friends is looking forward to retirement and is entertaining offers to buy out his business. Pretty much a 1 person operation, however he has a daughter who helps him 2 days a week with some misc things like book keeping and some small jobs. In a good year the company does well over 500K with just the 2 people working.

    He has for equipment:
    1984? Ford L8000 10 wheel dump truck w/ 22? ton equipment trailer
    1982? John Deere 550 track loader
    1997 New Holland 575 Backhoe w/ 4 in 1 bucket, 4wd, enclosed cab, etc.
    2003 Volvo 160B steel track excavator w/ dozer blade (roughly 2000 hrs) EXCELLENT condition
    2005 Volvo 55B rubber track excavator w/ dozer blade
    2003 New Holland LS180 skid steer w/ bucket and harley rake
    Other equipment too.. chipper, roller, etc.

    He'll hear any serious offers over 500K
     
  2. dozerman21

    dozerman21 LawnSite Bronze Member
    Posts: 1,170

    I'm not real familiar with the Volvos, but 500K seems pretty steep for what was listed with the extras, unless he's including some kind of contracts too?
     
  3. thebobcatkid86

    thebobcatkid86 LawnSite Member
    Posts: 100

    I dont know it does sound kind of steep when I add it up but thats alot of equipment and those Volvos especially are pricey machines to begin with.
     
  4. godzilla

    godzilla LawnSite Senior Member
    Posts: 401

    I knew I forgot a couple of things.

    2004 Mitsubishi Fuso FG with 9' Fisher plow and sander
    2001? Chevy 1500 pick-up with cap and ext cab, 7.5' Ortiz snow plow.

    The chipper is a 12" diesel Morbark, and the roller is a little 2 ton with an 8 or 10 horse Briggs gas engine.

    Plenty of wheelbarrows, and misc hand tools to boot. Also a couple of mowers.

    No contracts to speak of... just a lot of repeat customers who have been built up over the past 20+ years of being in business. With 2 qualified "workers" the company could do well over 1 mil per year. Qualified meaning class A CDL holders who can actually operate the machines. Jobs range anywhere from little lawn mowing accounts for $25 per cut (only a half dozen lawns which are kept in order to keep other companies off the properties) to jobs which last for months and months on end generating hundreds of thousands of dollars. This past year he set a personal record of 10 straight months on 1 site. I believe the prior record was about 7 or 8 months. Typical excavation jobs range anywhere from 20K - 100K+
     
  5. BMFD92

    BMFD92 LawnSite Senior Member
    Posts: 698

    Matt is he selling anything seperatly or is he selling the whole package?
     
  6. ksss

    ksss LawnSite Fanatic
    Posts: 7,131

    Actually that does not sound overly high to me. If you got all the equipment and the established name and do around 500K a year gross money I assume. One would want to look at the books, talk to his customers etc. but on the surface seems like a reasonable number.
     
  7. godzilla

    godzilla LawnSite Senior Member
    Posts: 401

    Whole package or nothing.
     
  8. godzilla

    godzilla LawnSite Senior Member
    Posts: 401

    I forgot to mention also that my friend would be willing to work with / for the new owner as an operator / salesman. I think he said he wants $300 / $400 per day to do whatever the case may be. He just doesn't want to have to work 6 - 7 days a week to keep up anymore or have the overhead and all the other headaches that come with running a business. He would want to do maybe 2 - 4 days a week, either running the machines or driving the trucks.
     
  9. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,067

    Nobody is going to drop $500K and THEN pay him $400 a day as an operator.
     
  10. murray83

    murray83 LawnSite Senior Member
    Posts: 347

    Jesus,I know operators in Alberta who only get $1500 a week but $400 a day in NY state don't make me laugh.
     

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