Buying a Paving & Asphalt Business

Loan options

• SBA 7(a) Standard Loan$5,000,000 · 10-year term for business acquisition with no balloon; fully amortizing monthly payments at variable rates typically WSJ Prime plus 2.75% or fixed equivalents

  Full business acquisitions of paving and asphalt contractors where proceeds cover the purchase price, equipment, working capital, and closing costs in a single loan structure

• SBA 7(a) Small Loan

  Smaller sealcoating, crack-fill, or striping businesses with lower equipment values and purchase prices under $500,000 where speed and reduced documentation are priorities

• SBA 504 Loan (Equipment Component)

  Acquisitions where a significant portion of deal value is attributable to heavy paving equipment or real property such as a yard or shop facility, allowing buyers to lock in long-term fixed rates on capital-intensive assets

Eligibility

• The target paving or asphalt business must be a for-profit U.S.-based operation with annual revenue under SBA size standards, typically under $8M for construction contractors, placing most lower middle market paving businesses well within eligible range.
• The buyer must inject a minimum of 10% equity at closing, sourced from personal funds, a gift, or a rollover for business startups (ROBS) structure — borrowed funds do not qualify as the required equity injection.
• The buyer must have relevant management or industry experience — lenders look favorably on backgrounds in construction, civil engineering, project management, or adjacent trades such as excavation or concrete contracting.
• The paving company's tangible assets, including equipment, accounts receivable, and real property if applicable, will be pledged as collateral; lenders may also require a personal guarantee from any owner holding 20% or more of the acquiring entity.

Step by step

1. Identify and Evaluate a Qualified Paving Business30–90 days depending on market activity and sourcing strategy

   Source acquisition targets through business brokers specializing in construction services, direct outreach to paving contractors, or lower middle market M&A platforms.

2. Sign a Letter of Intent and Engage an SBA Lender Early1–2 weeks for LOI negotiation; lender pre-qualification within 1–2 weeks of LOI execution

   Once you have identified a target, negotiate and execute a non-binding letter of intent outlining purchase price, deal structure, asset versus stock purchase election, and any earnout or seller note terms.

3. Complete Business Valuation and Equipment Appraisal2–3 weeks for business valuation; 1–2 weeks for equipment appraisal, often conducted concurrently

   SBA lenders require an independent business valuation for any acquisition over $250,000 where the buyer and seller are not related parties.

4. Submit the Full SBA Loan Application Package1–2 weeks to compile; lender underwrites within 2–3 weeks of complete submission

   Work with your lender to compile the complete application, including three years of business tax returns, three years of personal tax returns for all principals, year-to-date financial statements, a personal financial statement, a buyer resume demonstrating construction or management experience, a business plan with revenue projections and assumptions, and the signed purchase agreement or asset purchase agreement.

5. SBA Credit Approval and Commitment Letter1–3 weeks for SBA authorization; commitment letter issued within 1 week of approval

   The lender submits the approved credit package to the SBA for authorization, or processes it in-house if the lender holds SBA Preferred Lender Program status, which significantly reduces turnaround time.

Other financing

• SBA 7(a) Loan

  The most common financing vehicle for paving acquisitions under $5M. Covers goodwill, equipment, and working capital with a 10–20% equity injection. Lenders will scrutinize backlog quality, customer concentration, and equipment condition closely.

  • + Can finance both tangible assets like equipment and intangible goodwill in a single loan structure
  • + Long amortization up to 10 years reduces monthly debt service pressure during seasonal slow periods
  • − SBA lenders will discount or exclude deferred-maintenance equipment from collateral, increasing required equity
  • − Customer concentration above 30–40% in one client often triggers lender conditions or reduced approval amounts
• Seller Financing (Seller Note)

  Seller carries a portion of the purchase price, subordinated to the senior SBA loan. Common in paving deals where sellers want to bridge valuation gaps or facilitate smoother crew and customer transitions over 12–24 months.

  • + Bridges valuation gaps between buyer and seller without requiring additional outside capital
  • + Signals seller confidence in business performance, strengthening buyer credibility with SBA lenders
  • − SBA requires seller notes to be on full standby for 24 months, limiting seller's immediate cash benefit
  • − Seller may withdraw note offer if deal terms shift late in diligence, complicating capital stack

Lender tips

• Seek out SBA Preferred Lenders with a documented track record in construction services or equipment-heavy business acquisitions — generalist SBA lenders unfamiliar with paving operations will often misclassify equipment values, underwrite seasonal cash flow incorrectly, or apply overly conservative collateral haircuts that kill otherwise fundable deals.
• Present a clear equipment schedule with appraised values, model years, hours of use, and maintenance history upfront in your loan package — lenders financing paving acquisitions are effectively lending against the equipment as much as the cash flow, and a well-documented fleet schedule accelerates underwriting and builds lender confidence in collateral coverage.
• Structure the seller note as a full-standby instrument for 24 months post-closing if you need it to count toward the equity injection — partial standby seller notes do not satisfy SBA equity requirements, and many first-time buyers lose weeks negotiating note terms that ultimately do not comply with SBA guidelines.
• Provide the lender with a detailed backlog and bid pipeline schedule showing confirmed contracts and active bids for the next 6–12 months — this is the single most effective way to demonstrate forward revenue visibility for a business where trailing revenue alone may reflect weather-driven variability rather than true earning power.

• Asset Purchase with Equipment Carve-Out and EarnoutCash at close: 75–85% of purchase price | Earnout: 10–20% tied to contract retention or revenue thresholds over 12–24 months

  The buyer purchases business assets — including contracts, customer relationships, and goodwill — separately from the equipment fleet, which is either valued independently or subject to a post-diligence adjustment.

  • + Allows buyer to negotiate equipment values based on actual condition and replacement schedule, reducing overpayment risk
  • + Earnout aligns seller incentives with successful customer and crew transition post-close
  • − Earnout disputes are common in paving businesses where revenue seasonality and weather can obscure performance attribution
  • − Separating equipment values requires independent appraisals that add cost and time to the diligence process
• Equity Rollover with Seller Minority StakeCash at close: 80–90% of purchase price | Seller equity rollover: 10–20% of pro forma equity value

  The seller retains a 10–20% equity stake in the business post-close, typically as part of a recapitalization led by a PE-backed platform or strategic acquirer.

  • + Reduces buyer risk by keeping the seller financially motivated to support a successful transition of municipal relationships and crew leadership
  • + Allows the seller to participate in upside if the acquirer grows the business or executes a roll-up strategy
  • − Sellers approaching retirement often resist ongoing equity exposure and prefer a clean exit at closing
  • − Minority stake valuation and buy-out terms at the end of the transition period can create future disputes

Negotiation tips

• Push for an independent equipment appraisal from a certified heavy construction equipment appraiser before finalizing the purchase price — asphalt pavers, rollers, and dump trucks depreciate unevenly, and seller estimates are almost always optimistic.
• If the seller holds municipal contracts, require written confirmation or letters of intent from those municipalities that contracts will transfer or be re-bid favorably before releasing earnout payments or closing with full consideration.
• Build a capital expenditure reserve of $75,000–$150,000 into your post-close financial model to account for deferred equipment maintenance or near-term replacement needs that surface during diligence but are excluded from price negotiations.
• Use the seller note structure strategically — a seller willing to carry 10–15% of the purchase price subordinated is signaling confidence in the business and gives you leverage during diligence to push back on valuation if red flags emerge.

Equipment & Capital Assets

• Obtain a complete equipment list with make, model, year, hours, and current fair market value for every asset.critical

  Equipment represents the majority of asset value in most paving acquisitions and directly impacts post-close capex requirements.

• Commission an independent third-party equipment appraisal from a heavy equipment specialist.critical

  Seller valuations frequently overstate fair market value; an independent appraisal protects your purchase price allocation.

• Review maintenance logs and service records for all pavers, rollers, trucks, and support vehicles.important

  Deferred maintenance on asphalt pavers and rollers can mean six-figure replacement costs within 12–24 months of acquisition.

• Identify all equipment under lease or financing and confirm transferability of those obligations at closing.important

  Undisclosed equipment loans or non-transferable leases can complicate SBA financing and alter the effective purchase price.

Financial Performance & Job Costing

• Request three years of tax returns, P&L statements, and balance sheets — CPA-compiled or reviewed preferred.critical

  Informal financials are common in paving; tax returns are the most reliable baseline for SBA underwriting and valuation.

• Break down revenue and gross margin by job type — municipal, commercial, residential, and sealcoating.critical

  Margin profiles vary widely by segment; residential and sealcoating often carry higher margins than low-bid municipal work.

• Analyze material cost trends — specifically asphalt and aggregate pricing — relative to bid pricing over three years.important

  Oil-linked asphalt price volatility can compress margins on fixed-bid contracts if the seller hasn't built escalation clauses into agreements.

Customer Contracts & Revenue Quality

• Request a complete customer revenue schedule for the trailing three years, identifying the top 10 clients by revenue.critical

  Customer concentration is the most common deal-killer in paving acquisitions; you need to know where revenue is truly coming from.

• Review all active municipal contracts, master service agreements, and commercial maintenance agreements for assignment provisions.critical

  Municipal contracts often require re-bidding or formal assignment approval upon ownership change, creating post-close revenue risk.

• Assess the current backlog and bid pipeline — confirmed signed contracts versus verbal or in-progress bids.important

  Backlog quality determines Day 1 revenue visibility; a strong signed backlog reduces post-acquisition execution risk significantly.

• Conduct reference calls with the top five clients to assess relationship ownership — owner versus crew foreman.important

  If key relationships are tied entirely to the selling owner, revenue attrition risk post-transition is materially higher.

Labor, Licensing & Key Personnel

• Review all employee records, W-2s, and 1099s to verify crew size, tenure, compensation, and classification.critical

  Misclassified workers as 1099 contractors expose the buyer to significant payroll tax liability and Department of Labor risk.

• Identify the lead foreman or operations manager and confirm their intent to remain under new ownership.critical

  An experienced foreman is the operational backbone of a paving business; losing them post-close can cripple productivity and crew morale.

• Verify all required state contractor licenses, CDL driver certifications, and municipal prequalification registrations.important

  Paving licenses are often owner-held and may not automatically transfer, requiring new license applications that delay operations.

• Review workers' compensation claim history and current Experience Modification Rate for the past three years.important

  A high EMR increases insurance premiums and can disqualify the business from bidding on certain municipal or commercial projects.

Paving & Asphalt-specific checks

• Confirm asphalt material supplier relationships and pricing agreements — oil-linked cost volatility can compress fixed-bid contract margins by 5–10% without adequate escalation clauses.
• Evaluate geographic service area and seasonal working window — northern-climate paving businesses may generate 80%+ of revenue in a five-month season, requiring careful working capital modeling.
• Assess municipal procurement relationships directly — determine whether the owner is the named contact and whether introductions to public works departments have begun pre-close.
• Review any subcontractor dependencies for crack sealing, striping, or milling — high subcontractor reliance may indicate crew capacity gaps that limit standalone scalability post-acquisition.
• Confirm compliance with Davis-Bacon prevailing wage requirements on any federally funded or municipal projects — violations create retroactive liability that can exceed six figures on larger contracts.

Red flags

• Top two clients represent more than 50% of total revenue with no long-term contracts protecting renewal after ownership transfer.
• The selling owner holds the primary contractor license personally and no plan exists to re-license the business before closing.
• Equipment appraisal reveals deferred maintenance and replacement needs exceeding $300,000 within the first 24 months post-acquisition.
• Surety company declines to underwrite the incoming buyer, eliminating the ability to bid on municipal and bonded commercial projects.
• Lead foreman or sole operations manager confirms they plan to leave within 90 days of the ownership transition.

What the LOI covers

• Asset Allocation

  Specifies the categories of assets being acquired, with preliminary allocations for IRS Form 8594 purposes.

• Due Diligence Period and Access

  Defines the length of the exclusive due diligence period, the scope of information to be provided, and the process for conducting equipment inspections, contract reviews, and employee interviews.

• Seller Transition and Non-Compete

  Outlines the seller's post-closing obligations including a transition period, consulting arrangement, and non-compete/non-solicitation covenants.

Terms to negotiate

• Equipment Valuation Standard

  The method used to value the paving fleet — fair market value, replacement cost, or orderly liquidation value — can shift the total purchase price by hundreds of thousands of dollars.

• Earnout Structure and Measurement Period

  Earnouts in paving acquisitions are most commonly tied to municipal contract retention or backlog conversion rates.

• Seller Note Terms and Standby Period

  If SBA financing is involved, the seller note will typically be on full standby (no payments of principal or interest) for the first 24 months post-closing per SBA guidelines. Sellers need to understand this before signing the LOI.

• Key Employee Retention Conditions

  Specify by name or role the crew members whose retention is a condition of closing. Consider a retention bonus pool funded by the seller or split between buyer and seller, paid to foremen and key operators who remain employed 90–180 days post-closing.

Target profile

• Established recurring relationships with at least two or three municipal clients or large commercial property managers, providing predictable backlog and reduced customer concentration risk
• Owned or well-maintained equipment fleet including at least one paver, roller, and dump truck with documented maintenance logs and remaining useful life exceeding five years
• At least one experienced foreman or operations manager capable of running day-to-day crew scheduling, estimating, and job execution independently of the owner
• Clean or cleanable financials with three years of tax returns, identifiable add-backs, and no unresolved bonding issues, mechanic's liens, or material OSHA violations

Platform and add-on criteria

• Revenue of $2M–$5M with 15%+ EBITDA marginsPlatform

  The platform company must generate sufficient cash flow to support shared services overhead, debt service on the initial acquisition, and capital reserves for future add-on integrations.

• Established municipal or commercial contract basePlatform

  Recurring maintenance contracts with municipalities or property managers provide predictable revenue, reduce seasonality risk, and demonstrate the sticky customer relationships that underpin platform value.

• Owned equipment fleet in good working conditionPlatform

  A well-maintained fleet of pavers, rollers, and trucks minimizes near-term capex requirements and provides capacity to absorb add-on volume without immediate equipment investment.

• Experienced foreman or operations manager in placePlatform

  An independent operations leader who can manage crews, bids, and scheduling without owner involvement is essential for post-acquisition stability and future add-on integration.

Acquisition sequence

1. Anchor Acquisition: Establish the Platform CompanySecure a platform with operational infrastructure, transferable customer relationships, and an embedded operations leader who can absorb future bolt-on acquisitions without requiring a new management hire at each step.

   Identify and acquire a single paving contractor with $2M–$5M in revenue, a tenured crew, established municipal or commercial contracts, and an owner willing to remain for 12–24 months in a transitional role.

2. Bolt-On Acquisitions: Target Geographic AdjacencyExpand geographic footprint while keeping equipment mobilization costs manageable. Each bolt-on should add net revenue with minimal new overhead by folding back-office functions — estimating, billing, insurance, HR — into the existing platform infrastructure.

   After stabilizing the anchor acquisition — typically 12–18 months post-close — begin sourcing bolt-on targets in adjacent service areas within a 30–60 mile radius.

3. Operational Integration: Centralize Systems and ProcurementMargin expansion through procurement leverage and overhead consolidation — not just revenue aggregation. The goal is to demonstrate that combined EBITDA margins exceed what any individual company achieved independently.

   Implement shared estimating software (such as HCSS HeavyBid or Pavement Soft) across all acquired entities to standardize job costing, improve bid accuracy, and create a unified view of margins by project type.

4. Revenue Optimization: Municipal Contracts and Recurring ProgramsShift revenue mix toward recurring, contract-based work that improves backlog visibility, reduces seasonality risk, and increases the quality of earnings narrative for a future exit.

   Actively pursue municipal maintenance contracts, parking lot management agreements with commercial property managers, and multi-year sealcoating and crack-filling programs that generate predictable annual revenue.

Value creation levers

• Procurement Scale: Asphalt Material and Equipment Insurance

  Individual paving contractors rarely have leverage with regional asphalt plants or insurance carriers.

• Estimating Accuracy and Job Costing Discipline

  Most owner-operated paving companies estimate jobs from experience rather than structured cost models, leading to margin leakage on poorly scoped jobs and missed opportunities on mispriced bids.

• Fleet Optimization and Capital Expenditure Planning

  Acquired companies often carry underutilized equipment or have deferred maintenance that creates hidden capital expenditure risk.

• Municipal Contract Expansion Through Enhanced Bonding Capacity

  Individual contractors with $1M–$3M in revenue are often limited in their bonding capacity, preventing them from bidding on larger municipal paving and infrastructure contracts.

Day one

• Meet individually with the lead foreman and any key crew members to confirm their roles, compensation, and commitment to staying through the transition period.
• Audit the equipment yard — verify every piece of rolling stock, paving equipment, and trailers against the purchase agreement asset list and note any discrepancies immediately.
• Notify bonding and insurance carriers of the ownership change to avoid lapses in coverage that could disqualify the company from active municipal or commercial bids.
• Introduce yourself to the top three to five clients by phone or in person, reaffirming service continuity and your commitment to honoring existing contract terms.
• Secure access to all estimating files, active bids, job cost records, and supplier accounts to establish a baseline on backlog value and near-term revenue commitments.

Stabilize Operations (Days 1–30)

• Hold an all-hands crew meeting to introduce yourself, address concerns, and outline your vision for the company's growth and stability.
• Review all active contracts, open bids, and scheduled jobs with the seller to ensure no revenue-generating opportunities fall through the cracks during transition.
• Open dedicated business banking accounts, transfer supplier credit relationships, and confirm material pricing agreements with asphalt plants and aggregate suppliers.

Assess and Optimize (Days 31–60)

• Hire a third-party equipment appraiser or experienced mechanic to inspect all paving machines, rollers, and trucks and prioritize deferred maintenance items.
• Implement or upgrade job costing software — platforms like Jobber, Contractor Foreman, or QuickBooks with construction modules — to track labor and material costs per job.
• Review the last 24 months of completed jobs against original estimates to identify which job types, crew configurations, or client segments consistently hit or miss margin targets.

Build for Growth (Days 61–90)

• Register the business with additional municipal procurement portals and prequalify for bonding on contracts one tier above your current capacity to expand addressable work.
• Create a written crew onboarding process and partner with a local trade school or union hall to build a reliable pipeline of trained equipment operators.
• Schedule a 90-day review with your accountant, lender, and any equity partners to assess integration progress, reforecast the year, and confirm SBA loan covenant compliance.

Pitfalls

• Losing the Lead Foreman in the First 60 Days

  If your experienced foreman walks, crew morale collapses and job quality suffers. Lock in retention with written employment agreements, a modest bonus tied to 12-month tenure, and genuine involvement in operational decisions.

• Letting Active Bids and Backlog Slip During Transition

  Ownership changes create distraction that causes open bids to miss deadlines and backlog jobs to be misscheduled. Assign one person to own the bid log from day one and review it weekly without exception.

• Underestimating Seasonal Cash Flow Pressure

  Northern-market paving businesses can go 90–120 days with minimal revenue in winter. Model monthly cash flows before closing, establish a working capital reserve, and negotiate a line of credit before the off-season hits.

• Skipping an Independent Equipment Appraisalcritical

  Paving fleets include pavers, rollers, and dump trucks worth $500K or more. Buyers who rely on seller-provided values routinely inherit aging equipment requiring immediate six-figure capital replacement.

• Underestimating Customer Concentration Riskcritical

  Many paving contractors generate 50% or more of revenue from one municipality or commercial property manager. Losing that contract post-close can devastate year-one cash flow and debt service coverage. How to avoid it: Map revenue by client for three years.

• Accepting Informal Financials Without Reconstructioncritical

  Owner-operated paving companies frequently run personal expenses through the business and use cash accounting. Relying on QuickBooks printouts without a formal quality of earnings review overstates true EBITDA.

• Ignoring Seasonal Cash Flow When Structuring Debtmajor

  Northern-climate paving businesses can generate 70–80% of annual revenue in a five-month window. Buyers who model flat monthly debt service quickly face covenant breaches during winter months.

• Failing to Confirm Key Crew Retention Before Closingmajor

  An experienced paving foreman with municipal relationships is often worth more than any piece of equipment. Many buyers close without signed retention agreements, then lose critical crew within 90 days.

• Overvaluing Backlog Without Verifying Bid Conversion Ratesmajor

  Sellers often present a large bid pipeline as a proxy for future revenue. Buyers who pay on inflated backlog projections discover many bids are speculative or systematically lost to competitors.

Warning signs

• Seller cannot produce job-level cost reports or gross margin data by project for the past two years
• More than 40% of revenue traces to a single municipal contract expiring within 18 months of close
• Equipment fleet averages over 12 years old with no documented preventive maintenance history
• Owner is the sole estimator and has no foreman capable of independently managing a crew or customer relationship
• Bonding capacity is tied personally to the seller and cannot be transferred or reestablished by an incoming buyer

Phase 1: Financial Cleanup and Valuation Baseline (Months 1–6)

• Compile three years of CPA-reviewed or compiled financial statementshigh

  Buyers and SBA lenders require clean, accountant-prepared financials.

• Separate personal expenses from business financialshigh

  Owner-operated paving companies commonly run personal truck payments, family cell phones, hunting leases, and other personal costs through the business. Work with your CPA to identify and document each add-back with receipts and explanations.

• Establish a formal job costing system for all active and recent projectshigh

  Buyers and their diligence teams want to see gross margin by job type — municipal paving, commercial parking lots, residential driveways, sealcoating, and crack filling all carry different margin profiles.

Phase 2: Equipment, Operations, and Crew Documentation (Months 4–12)

• Create a comprehensive equipment inventory with condition ratings and maintenance logshigh

  Your equipment fleet — pavers, rollers, dump trucks, skid steers, tack coat distributors, and support vehicles — is one of the most scrutinized assets in a paving business acquisition. Buyers will hire third-party appraisers to assess fair market value.

• Perform and document deferred maintenance on major equipmenthigh

  A buyer discovering a paver with a worn screed, a roller with hydraulic issues, or dump trucks approaching DOT compliance limits will immediately discount their offer or demand seller concessions.

• Document your estimating process, bid pipeline, and project management workflowhigh

  Most paving business owners carry the estimating process entirely in their head — they know local material costs, subcontractor rates, equipment time, and crew productivity by feel.

Phase 3: People, Contracts, and Customer Transition Planning (Months 8–18)

• Identify your lead foreman or operations manager and begin transitioning customer relationshipshigh

  The single biggest value killer in a paving business sale is when all customer relationships, municipal contacts, and supplier relationships run exclusively through the owner.

• Document all active contracts, recurring service agreements, and open bidshigh

  Compile a contract summary document listing every active municipal contract, commercial maintenance agreement, and open bid in your pipeline. Include contract expiration dates, renewal terms, annual value, and the primary contact at each client.

• Address any outstanding mechanic's liens, legal disputes, or OSHA violationshigh

  Lien searches, court record checks, and OSHA violation history are standard components of paving business diligence.

Phase 4: Go-to-Market Preparation and Advisor Engagement (Months 12–24)

• Engage a business broker or M&A advisor with construction industry experiencehigh

  Selling a paving business is fundamentally different from selling a retail shop or professional services firm.

• Prepare a professional Confidential Information Memorandum (CIM)high

  Your CIM is the primary marketing document buyers will use to evaluate your business.

• Determine your ideal deal structure and post-close rolemedium

  Before entering negotiations, decide how much seller financing you are willing to provide, whether you are open to an earnout tied to contract renewals or backlog conversion, and how long you are willing to stay involved post-close in a consulting or transition role.

Quick wins before a sale

• Pull your last three years of tax returns and P&L statements and give them to a CPA to identify add-backs and prepare recast financials — this single step clarifies your true valuation and is required by every buyer and SBA lender.
• Walk your yard and job sites and create a simple spreadsheet listing every piece of equipment with year, make, model, hours or miles, and any known mechanical issues — buyers will ask for this in the first week of diligence.
• Print your last 24 months of revenue by customer, sort it from largest to smallest, and calculate what percentage your top three clients represent — if any single client is above 30 percent of revenue, start a plan today to diversify before going to market.
• Have a direct conversation with your lead foreman about the future of the business — understanding whether they want to stay, grow into a management role, or leave after a sale is critical information that shapes your entire exit strategy and buyer positioning.

Questions to ask a broker

• How many paving or heavy equipment contractor businesses have you sold in the last three years?

  Paving deals require expertise in equipment appraisal, bonding transfer, and seasonal EBITDA normalization — generalist brokers frequently misvalue these businesses.

• How do you handle equipment valuation and allocations within the purchase price?

  Equipment often represents 30–50% of deal value in paving acquisitions; improper allocation affects SBA eligibility, depreciation, and buyer financing terms.

• What is your process for qualifying buyers who can finance an equipment-heavy paving acquisition?

  Unqualified buyers waste months of diligence; brokers need pre-screened buyers with SBA lender relationships and construction operating experience.

Broker red flags

• Broker has no closed transactions in construction, contracting, or equipment-intensive businesses and cannot name a comparable deal.
• Broker provides a valuation without reviewing equipment condition, backlog quality, or customer concentration — three primary value drivers in paving.
• Broker discourages seller from preparing CPA-compiled financials or cleaning up add-backs, signaling unfamiliarity with lender underwriting standards.