Project Toolbox (or the “Company”) headquartered in New England, is one of the region’s leading interior subcontractors, specializing in furnishing and installing Division 10-12 Products. Since its founding over 40 years ago, the Company has grown to serve the demanding needs of over 50 general contractors in the region. Beyond its emphasis on Division 10-12 Products, Project Toolbox also installs some Division 5, 8 and 9 Products, providing the general contractor with a broad base of bundled capabilities, greatly simplifying the subcontracting process.
With its many decades of experience, the Company has developed extensive relationships with and recognition among contractors and architects serving the healthcare and educational communities such as hospitals, elderly housing, high schools, colleges and universities as well as serving a wide array of commercial entities. Project Toolbox brings the general contractor access to an extensive base of highly specialized suppliers. The Company is very knowledgeable about the products it sells and installs, and in many cases, staffers have received supplier-sponsored training. This allows the Company to be very solution-oriented throughout a project by supporting architects in the design phase on unique or new products as well as recommending alternatives when a product may not work as originally anticipated. This approach leads to win-win solutions for all parties involved and results in very satisfied clients. The Company enjoys longstanding relationships with a prestigious list of leading regional construction firms. Project Toolbox stands behind its bids and has a sterling and unblemished record of completing 100% of the jobs they’ve been awarded over the years.
Having successfully built the business over many decades, the founders are approaching retirement age and are looking to sell the business to new owners who can take the Company to the next level. Project Toolbox represents a rare opportunity to acquire the dominant player in Division 10-12 products in a well-defined territory. The Company would be particularly attractive to a subcontracting firm looking to add Division 10-12 products to their current business, or as part of a regional or national “roll-up” to build scale and market share. The principals are willing to remain with the Company to provide an orderly transition to new ownership.
Division 10-12 Products
Project Toolbox specializes in furnishing and installing products in Divisions 10-12, but is also able to handle projects in Divisions 5, 8 and 9:
Access Doors and Panels
Acoustic Wall Treatment
Cubicle Tracks & Accessory Rails
Directories and Bulletin Boards
Hat & Coat Racks & Accessories
Signage and Graphics
Tenant Storage Compartments
Toilet, Bath & Laundry Accessories
Wardrobe & Closet Accessories
Wall and Corner Guards
Wire Mesh Partitions
Police and Fire Station Equipment
Entrance Mats and Frames
Motorized Hardware: Blinds,
Shades and Draperies
Window Blinds and Shades
Summary Financial Data
Management has identified many areas of potential savings when the company transitions to new ownership. These include the elimination of private company expenses, operational improvements and other efficiencies. The combined effects of these adjustments result in pro-forma EBITDA margins of 8-10%. A detailed pro-forma analysis is provided in the Confidential Information Memorandum.
Lockers and bathroom partitions are among the many items the Company furnishes and installs.
With its outstanding reputation for service and quality, Project Toolbox has many avenues of growth:
Develop a stronger presence in adjacent markets in adjacent states. Depending on distances, jobs could either be staffed from the Company’s headquarters or a satellite facility.
A large portion of the current workload is responding to contractor solicitations. By placing a salesperson on the road, Project Toolbox could proactively expand sales with both existing clients as well as develop new relationships.
Increase product lines in divisions where the Company is not currently represented but where they have been asked to provide service – such as doors and hardware.
A number of Project Toolbox’s largest contractor customers have opened offices outside of the Company’s primary market. Project Toolbox could set up satellite facilities and follow their customers into these markets.
With its extensive relationships with construction material suppliers, the Company can expand its retail/distribution business. An additional benefit to this strategy is that manufacturers often know about upcoming projects and can provide Project Toolbox with leads.
There are many opportunities to make greater use of technology enablement at the company. Processes such as take-off itemizations, preparation of submittal packages, changes and approvals remain labor and paper intensive. Meanwhile, significant historic project data exists that can be mined for pricing, bidding and marketing insights. There is also an opportunity to leverage the Company’s longstanding relationships with suppliers and build an e-commerce sourcing platform to serve smaller contractors doing smaller jobs