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Inside a High-Cash-Flow Waterworks Deal in the Carolinas

Nov 12, 2024

Delve into a $32 million waterworks utility contractor opportunity in the Carolinas, highlighting its impressive cash flow and growth potential amid a booming population. Discover challenges like labor shortages and the intricacies of project costing, particularly for veterans seeking government contracts. Learn about the importance of due diligence in business acquisitions, and enjoy amusing anecdotes about distractions in today's digital workplace. This is a rich discussion for anyone eyeing lucrative investment opportunities in infrastructure.

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Intro

00:00 • 2min

Navigating Distractions and Sleep Schedules in a Digital Age

01:40 • 2min

Navigating Complex Business Deals

03:13 • 12min

Insights on Business Acquisition and Management Strategies

15:30 • 3min

Navigating Project Costs and Government Contracts

18:23 • 10min

Navigating High-Cash-Flow Commercial Deal Evaluations

28:47 • 3min

In this episode, the Acquisitions Anonymous team dives into the ins and outs of a $32 million waterworks utility contractor business in the Carolinas. With a strong cash flow of $2.3 million, this company’s focus on installing and maintaining underground utilities for residential and commercial developments makes it a fascinating opportunity for strategic buyers.

Thanks to today's sponsor:
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Key Highlights:
Region-Specific Growth Potential: The Carolinas are experiencing strong population growth, making this a potentially lucrative investment. But with heavy dependence on development cycles, how sustainable is this market?

Growth Opportunities and Challenges: The business has a record backlog and is primed for expansion with the right infrastructure and talent. However, labor shortages in the industry and a lack of costing software raise questions about scaling potential.

Ideal Buyer Profile: This episode explores who could be the perfect buyer—possibly a military veteran looking to leverage government diversity contracts or a strategic acquirer looking to expand their portfolio.

Risk Factors and Due Diligence: From client relationships to transferability of the business, our hosts discuss the potential risks involved in acquiring a contractor with network-based sales and key dependency on skilled personnel.

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