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

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



