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Construction Services for Education and Government
An Arizona commercial general contractor specialising in school renovation and government work, holding job order contracts with multiple school districts.
Business Highlights
- Job order contracts with multiple school districts, which are difficult to obtain and competitively protected
- Work spans K-12 districts, college campuses and government agencies statewide
- EBITDA margins above 17%, which is strong for commercial general contracting
- Revenue has grown while margins held
Considerations / Questions to Ask
- The JOC contracts are the moat. When do they expire, how are they re-competed, and do they survive a change of control?
- Public work carries bonding requirements. What capacity is in place, and does it transfer?
- How concentrated is revenue among the largest districts?
- School work is seasonal around the academic calendar. How does that affect crew utilisation?
- At this revenue, what does the management team below the owner look like?
Opportunities
- JOC relationships are the hardest thing to acquire in public construction and are already held
- Statewide agency coverage means the same qualifications open work well beyond current districts
- School renovation is funded by bond cycles rather than the private construction cycle, which is a different and steadier demand driver
- The owner would stay a year, which is the mechanism for handing over district relationships