This was a multi-decade, family-run commercial flooring contractor in San Diego that had become a regional leader in commercial, healthcare, education, and industrial work across Southern California. The majority owner was ready to fully retire, while two minority owners wanted liquidity but also the opportunity to stay in the business and participate in the next stage of growth.

They weren’t just selling a flooring company, they were transitioning a legacy. Protecting their brand, reputation with general contractors and facility owners, and their tight‑knit team (including multiple family members and long‑tenured employees) was a top priority. Confidentiality throughout the sale process was critical to prevent rumors and disruption before they were ready to communicate the transaction to employees and key customers.

We brought the commercial flooring business to market in April 2024 with a targeted outreach process. Interest was immediate. After just 30 Days: more than 120 buyer inquiries and over 95 signed NDAs from private equity groups, family offices, strategics, and experienced owner‑operators. That level of activity allowed us to position the company as a premium commercial contractor opportunity and create genuine competition among qualified buyers.

Key Deal Metrics

• Revenue (3-year average): $11,295,483

• EBITDA / SDE (3‑year average): approximately $1,264,170

• Sale Price / Enterprise Value: $5,500,000

• Approximate Multiple: about 4.3x average 3‑year EBITDA/SDE

• Time to Close: 5 Months from List to Close

• Buyer Type: Private Equity focused on construction and services

• Deal Structure:

  • Substantial cash at close to the sellers for company shares

  • Personal goodwill allocation for the two continuing principals

  • A 10% Seller Carry Note

  • Rolled equity for the two continuing minority owners, who each retained about 10% of the company post‑closing

How We Structured a Win‑Win Exit

A core challenge in this transaction was aligning three different seller objectives in one structure. The majority owner wanted a clean, full exit and maximum liquidity, while the two minority owners wanted to de‑risk, stay actively involved, and share in future upside with a new capital partner. We solved this with a mix of cash for shares, a significant personal goodwill allocation to the two continuing principals, seller financing, and rolled equity that kept the leadership team invested while allowing the majority owner to retire on attractive terms.

We also invested heavily in preparation so the business would present like a larger middle‑market platform. We highlighted three years of financial performance, revenue growth from roughly $8.9M to over $13.0M and EBITDA/SDE expansion from about $681K to nearly $1.9M, alongside detailed service line descriptions, certifications, equipment, and growth opportunities. That level of transparency gave buyers confidence they were acquiring a scalable platform, not just a project‑driven contractor.

In the end, the majority owner exited on their terms, the minority partners rolled equity with a capable operator, and the team kept the leadership and culture they trusted, all while positioning this business for its next phase of growth.