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Residential ADU Construction Management

A Southern California construction management firm specialising in ADUs, garage conversions and additions, holding a six-digit CSLB licence issued over thirty years ago.

Business Highlights

  • Six-digit CSLB licence established over thirty years ago, which opens bidding on larger contracts that newer licences cannot access
  • All field labour is handled by licensed 1099 subcontractors, keeping fixed overhead very low
  • Specialises in ADUs, garage conversions, home additions and mountain construction
  • Revenue and margins have held steady rather than fluctuating
  • Additional transactional income from buyer home inspections and cost analysis

Considerations / Questions to Ask

  • The licence is the core asset. How does a six-digit CSLB licence transfer on a sale, and what does the buyer need to qualify personally?
  • Margins near 50% are high for construction. What exactly does the firm do itself, and what is subcontracted?
  • A 1099 subcontractor model carries classification risk in California. How is that structured?
  • How dependent is the pipeline on the owner's own relationships with subcontractors and referral sources?
  • California ADU rules have driven demand. What happens to volume if that policy environment shifts?

Opportunities

  • ADU demand in Southern California is policy-driven and the firm is already specialised in it
  • The licence permits bidding on larger contracts than the business currently takes on
  • A subcontractor model scales with demand without adding payroll ahead of revenue
  • Inspections and cost analysis are a low-cost lead source into the construction work