This $750k Construction / Contractor Pays $249,102/Year After Debt
Priced at or below the benchmark multiple and coverage clears the 2.0x Bulletproof threshold. The margin runs well above the benchmark, which is the part to verify first.
This is a construction / contractor business listed at $750,000, generating $1.2M in annual revenue and $363,655 in seller's discretionary earnings. At a 2.06x cash flow multiple, the asking price is within the 3.00x Bulletproof threshold and below the 3.40x benchmark for construction / contractor businesses. The profit margin is 30%, well above the 12% benchmark for construction / contractor businesses, about 2.5x the category figure.
We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.
Deal Snapshot
The deal snapshot tells a clean story. Revenue of $1.2M produces a 30% margin, well above the 12% benchmark for construction / contractor businesses, about 2.5x the category figure. The 2.06x multiple is within the 3.00x Bulletproof threshold and below the 3.40x benchmark for construction / contractor businesses.
Financing Overview
Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.
Why the Numbers Matter
The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.
The post-debt cash flow of $249,102 per year is what is left after every loan payment on the figures entered. On a $75,000 cash investment, that is a strong return, and it is well above the $100K minimum threshold that the Bulletproof standard requires. This figure is calculated before any cost of replacing the owner’s own role in the business. Where the seller is also the person producing the revenue, a buyer should subtract what it would cost to hire that role before treating this as take-home pay.
The DSCR of 3.17x means the business generates $3.17 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears both with room to spare, which means you have a real safety margin if revenue softens or costs spike unexpectedly.
The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $960,000 in revenue (down from $1.2M), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.
Industry Context
📈 How This Deal Compares to the Construction / Contractor Industry
Construction / Contractor carries an SBA default rate of 6.8% against a 5.1% all-industry average. That is a statement about the category rather than this listing, but it does mean the coverage and stress-test figures carry more weight than the headline multiple.
Demand is partly discretionary and moves with the local economy, the service radius is local, and licensing keeps the competitive field narrow. Trailing earnings reflect a backlog that may already be spent, so a buyer needs to see signed work ahead rather than work completed behind.
Combined with a deal that performs well on the fundamentals, this is the profile lenders like to fund.
Strengths and Risks
✓ What Works
- Debt coverage of 3.17 against a bank minimum of 1.25. That is margin for a bad year, not just a good one.
- Coverage still holds at 2.54 after a modeled 20% revenue drop.
- Owner cash flow of $249k after every loan payment is made.
- Priced at 2.06x, inside the 2.89x to 3.91x band these businesses normally trade in.
⚠ Watch Out For
- Every figure here comes from the listing and none of it is verified. A listing is marketing, and it is written by someone paid on the sale.
- Margin of 30% is 2.6x the 12% industry average. Verify whether a market-rate manager salary sits in the expense base. If the owner is the labor, SDE is overstated and every figure below it moves.
Who This Deal Is For
Best fit for:
A buyer with roughly $75k for the equity injection, plus closing costs and working capital on top.
Someone who needs the business to pay them from day one. After debt service this leaves $249k.
An owner-operator who intends to run it, since the financing math here assumes no separate manager salary.
Not a passive investor. SBA acquisition financing requires the buyer to be actively involved.
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Frequently Asked Questions
Is $750,000 a fair price for a construction / contractor business?
At 2.06x seller's discretionary earnings, this asking price is within the 3.00x Bulletproof threshold and below the 3.40x benchmark for construction / contractor businesses. The Bulletproof threshold and the category benchmark are two different yardsticks, and this deal sits inside the stricter of the two.
What is a good profit margin for a construction / contractor business?
The benchmark profit margin for construction / contractor businesses is approximately 12%. This listing operates at a 30% margin, which is well above the 12% benchmark for construction / contractor businesses, about 2.5x the category figure. That is a comparison against category medians, not a verdict on this listing.
Can I buy a construction / contractor business with an SBA loan?
Yes. Construction / Contractor businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $750,000 deal the down payment is $75,000, but cash required at closing is $97,500 once closing costs and a working capital reserve of $156,000 are counted. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 3.17x DSCR comfortably clears both thresholds.
How much do construction / contractor business owners actually make?
Owner earnings vary widely based on revenue, pricing, and operational involvement. This construction / contractor business generates $363,655 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $249,102 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.
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