40% Growth in Year 1 of a Paving Business

notes and when you said grown it to what it is today. Give us a picture, give us some numbers around the size of this.

So when we were evaluating it, the three year average revenue was right about 4.1 million.

Full time employees? That was 16.

And margins in paving I have always understood to be not very high because I'm actually, I'm not sure why that is. Maybe because it's less differentiated work. But I really, I'm speaking out of turn here.

I don't know. So what, what did margins in this business look like?

Yeah, margins are in our type of paving are a little bit higher because we're doing more kind of odd jobs. It is all commercial but you know, we're doing patching parking lots, stuff that really big paving crews are not going to do. You know, they're going to want to do city work schedules, highways, you know, stuff where they just sit down and go.

Right. Massive quantities. They'll, they'll do in the thousands and thousands of tons. Right. And the margin of that smaller but they can make up for it in the quantity. So our margins are actually a little bit better.

When we evaluated the business, we got to basically an average margin of right around 17 and a half percent. So that's kind of what we did the rest of our analysis off of. Great.

So 17% of 4.1 million is. Oh, what is that? 700 ish. 7 high? 600. 700, yeah.

Yeah. So we were right there for SD and then my, my two buddies who helped me with this are great guys. They own a, a commercial janitorial service in the area called On Point Building Services. And, you know, I literally had all the financials.

And we, we sat down in their office one day, Blake and Corey, and we just put it all on a dry erase board and up on the computer we said, all right, let's figure out average sde. Let's, you know, all this stuff. And then we were able to come up with an ebitda, which we took the SD and we subtracted out what we thought it would take for someone to run the company.