Centrally located in Texas, LONESTAR presents a compelling opportunity for strategic acquirers looking to add highly qualified surveyors and engineers while expanding market share and customer diversification. One of the shareholders seeks to transition out in the near-term, while the others want to align with a larger firm that can support continued growth and professional development.
This highly profitable business (25%+ EBITDA margins) offers a diverse set of professional services to both public and private clientele and enjoys strong customer retention. LONESTAR is very strong in their survey capabilities and provide premium customer service compared to their competition. While diversified, they excel in energy and public infrastructure markets which, combined, account for 50% of their total revenue on an annual basis.
LONESTAR possesses a high caliber team consisting of ±35 employees. With a 40+ year track record and exceptional reputation in its local market, the Company enjoys a loyal customer base across municipal, infrastructure, energy and commercial development end markets. The Company is tracking $5.6M+ revenues w/ 25%+ EBITDA margins in 2021. Revenue breakdown consists of approximately 75% surveying, 25% engineering. Civil engineering capabilities were added five years ago, presenting a significant growth opportunity with the increasing infrastructure budgets across the state of Texas.
Company currently leases two facilities at fair market rents and expects these leases to convey with the sale.
Market Outlook / Competition
There is significant growth opportunity to expand these services with key hires of additional PE’s. Today, there is more demand to keep up in Texas due to the investments in infrastructure. Additionally, the Company continues to diversify into newer end markets which present growth opportunities, i.e., Renewable Energy.
Surveying/engineering is a very fragmented industry, especially in the state of Texas. While there are many competitors in their geographic area, the Company benefits from strong relationships with repeat customers. Additionally, the Company’s solid reputation in Texas ultimately wins them many projects with exceptional clients.