Why does a masonry company’s reliance on spring and summer work matter to a buyer?
Masonry is hard to do in cold, wet weather, so income can bunch into warm months while costs continue all year. A buyer needs to know how the company covers the quiet season, keeps its crew and pays for equipment and insurance until the work returns.
Ask for monthly sales and cash balances across several full years, not just annual totals. Look at how deep the dip is, how long it lasts and how the company funds itself through it. A credit line or cash reserve may be doing quiet work that you will need to replace.
Ask what the crew does in the off-season. Some masons move to indoor work or restoration, while others are laid off and may not come back. Find out how many return each spring, because a lost crew is hard to rebuild.
Fixed costs also matter: yard, trucks, insurance, loan payments. Ask when payments are due and whether any are timed to busy months. Consider also how you would time your purchase, since buying before a long quiet stretch needs more cash. Your accountant can build a month-by-month cash plan, and a lender will likely ask for one. Ask the seller what steps already smooth the cycle. Finally, ask whether the company has tried off-season steps such as indoor stonework, fireplaces, repairs, or winter hoarding that allows work in cold weather. Even small moves can ease the dip, and a buyer can judge how far they might go. Ask what the owner does personally in the slow months, since that effort may fall to you.
Key takeaways
- Review monthly sales and cash, not just yearly totals.
- Ask who returns to the crew every spring.
- Build a cash plan for the quiet months before you commit.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is a demand loan and how it works
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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