Buying a Quarry for $17M: A Rock-Solid Investment or Sinkhole?
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May 30, 2025
The hosts explore a unique investment opportunity: a $17M Massachusetts quarry with impressive cash flow. They discuss the potential rewards and risks of asset-heavy business models, including the intricacies of USDA loans and government contracts. The conversation shifts to the interplay between stone demand and market dynamics, and the operational challenges quarries face. Plus, there's a delightful detour into the festive atmosphere of San Antonio's Fiesta, complete with amusing anecdotes about dressed-up dogs. It's a blend of business insight and cultural fun!
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question_answer ANECDOTE
Fiesta Dogs in Sombreros
Michael Girdley shares a personal story about San Antonio's Fiesta involving a lady dressing up her dogs with sombreros.
This anecdote illustrates the spirited local culture and festive community traditions.
insights INSIGHT
Quarry Asset-Heavy Valuation
The Massachusetts quarry business includes 68.5 acres and 5.5 million tons of extractable rock.
Its $17M asking price with $2.7M SDE implies a 6.25x multiple, highlighting a significant asset-heavy operation.
insights INSIGHT
Quarry Like Cemetery Inventory Model
Quarries often operate like cemeteries selling finite inventory that determines long-term value.
Regrading and selling land post-extraction can create perpetual value beyond mining operations.
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This week, the hosts break down a first-ever for the podcast—a Massachusetts quarry generating millions in cash flow and loaded with real estate and equipment.
Business Listing - https://www.bizquest.com/business-for-sale/quarry-gravel-and-wall-stone-in-new-england-municipal-accounts/BW2188901/
Sponsors: Check out Capital Pad – the marketplace for small business acquisitions where operators and investors meet: https://www.capitalpad.com
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Episode Description: In this episode, the hosts examine a uniquely asset-heavy small business—a quarry in Massachusetts listed at $17M with $2.7M in cash flow. With a 68-acre land parcel, $6M in equipment, and 5.5 million tons of stone still underground, this business comes with significant upside and risk. They dig into USDA loan potential, specialty product vs. commodity rock dynamics, the implications of fluctuating demand, and how this type of deal might appeal to family offices. There’s even a fun detour into San Antonio’s wild Fiesta tradition. If you’ve ever wondered what it's like to buy a hole in the ground that prints money—this is your episode.
Key Highlights:
- Why a quarry deal is a first for the podcast in 400+ episodes - Understanding asset intensity and CapEx risk in quarry businesses - Revenue mix between government contracts and private clients - How to use USDA loans for large rural acquisitions - Real estate as a built-in exit option once the rock is gone - The role of family offices and what financing could look like - A 53% YoY profit spike—explained or not? - Why it’s critical to hire a specialty buy-side advisor for niche deals - Bonus: a deep dive into San Antonio’s Fiesta and corny coronations
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