Engineering Designer and Consultant Business For Sale

Business description

The Company provides engineering design and consulting services to a wide variety of clients, many of which are involved in the mining industry. The Company’s area of expertise includes hydrology and hydraulics, flood analyses, environmental permitting, ore reserve evaluation, mine planning, mine waste disposal, land reclamation design, mineral processing, plant design and construction coordination, construction management, solid waste disposal, sanitary waste disposal, and site evaluations

Demand for engineering services is largely driven by the construction needs of companies and governments and the desire of industrial customers to improve the efficiency of their operations. Success in the industry, on the other hand, is largely driven by diversity of services offered, a highly experienced staff, personalized services, and long-term client relationships. The Company’s staff is experienced in the disciplines of civil, structural (steel, concrete, and wood), mechanical, electrical, and environmental engineering.

• The Company achieved increasing sales each year during the historical period. Nominally, revenue increased from $1,819,000 in 2005 to $3,448,000 in 2007 representing a Compound Annual Growth Rate (“CAGR”) of 37.7%. Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) increased from 16.1% in 2005 to 23.3% in 2007. EBITDA is expected to grow again in 2008 as the Company experiences continued operational efficiencies and improves gross margins. The EBITDA margin in 2008 is expected to be 27.9%

• The Company distinguishes itself from the competition by offering personalized services. Their areas of expertise include hydrology and hydraulics, flood analyses, environmental permitting, ore reserve evaluation, mine planning, mine waste disposal, land reclamation design, mineral processing, plant design and construction coordination, construction management, solid waste disposal, sanitary waste disposal, and site evaluation

• US nonresidential construction, an indicator of demand for engineering services, increased 14.8% in the first 10 months of 2007 compared to the same period a year earlier. Growth in industrial production indicates the need for process design, mechanical, and other types of engineering services

• The Company serves a variety of customer markets. The major industries served are phosphate mining and processing, minerals processing and plant design, environmental permitting, land development and land reclamation. The top industry, phosphate mining, contributed 25% of sales in 2007. This diversification of industries served protects the Company from economic downturns or loss of a client in a particular market segment