Recession Proof, Recurring Revenue, SoCal Paving Contractor (38054) 

Recession Proof, Recurring Revenue, SoCal Paving Contractor (38054)
Price: $8,000,000
Revenue: Undisclosed
Adjusted Cash Flow: Undisclosed
Location: California

LOCATION: Los Angeles Suburbs                                                                                                INDUSTRY: SIC Code 161

More than a paving company, this licensed infrastructure steward is strategically embedded in the nation’s most pavement-intensive corridor. The primary Alpha lies in applying modern digital marketing and systematic account management to a business holding California’s hardest-to-replicate assets: a C-12 License, decades of institutional trust, and a recurring revenue base driven by the laws of physics—not the business cycle.

Pavement deteriorates regardless of economic climate; this company holds the credentials and relationships to be the default service provider when it does.

INVESTMENT HIGHLIGHTS

  • Regional Market Command: Headquartered in the LA/Orange County corridor, the Company captures superior route density and logistical advantages over peripheral competitors.
  • Regulatory & Licensing Moat: A specialized C-12 profile, coupled with rigorous CARB and NPDES compliance, creates high barriers to entry that insulate the business from under-qualified competition.
  • Non-Discretionary Revenue: Operations are anchored by statutory HOA reserve mandates (Cal. Civil Code §5550–5560). This structural demand remains uncoupled from macroeconomic volatility.
  • Entrenched Relationships: A blue-chip portfolio of municipal and HOA accounts provides a high visibility, repeat revenue foundation with minimal acquisition costs. 

FINANCIAL OVERVIEW

                                                               Dec-21                  Dec-22              Dec-23             Dec-24               Dec-25

Income                                                 13,364,634            12,513,065      10,052,191         13,167,255          11,892,434

Gross Profit                                           2,435,826              2,800,702        2,757,117          2,813,771            2,934,547

SDE                                                           957,393              1,418,803           832,365          1,050,833            1,244,965

Adj EBITDA                                              624,698              1,100,018           485,880             680,612              865,230

GROWTH OPPORTUNITIES

  • Scalable Platform: Documented operating procedures and a licensed crew base are ready for immediate geographic expansion into the Inland Empire and San Diego.
  • Service Extension: Immediate upside through concrete infrastructure, specialty coatings, and aggressive municipal contract capture.
  • Operating Leverage: Existing infrastructure supports meaningful revenue growth without proportional cost scaling.
  • Systematized Capture: Opportunity to deepen market penetration through modernized digital lead generation and proactive account management.

 Acquisition Terms: All business assets and goodwill are available for $8M.

 For additional information including a CIM and financial details, please execute an NDA, and contact:

Martin Gillard FMVA, CBCA, IMAAP                             480-781-6598                   mgillard@iagmerger.com



Martin Gillard

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