Routh Exit Advisors was engaged by a well-established, multigenerational asphalt paving company that had been operating for approximately 15 years under its second generation of leadership. As the owners approached retirement, they sought guidance on how to transition the business in a way that would protect their legacy, employees, and financial future.

We began with a comprehensive evaluation of all viable exit paths, including internal succession through a leveraged buyout as well as a third-party sale. After careful analysis, the ownership group determined that a third-party transaction would best align with their priorities—namely, a timely exit and the maximization of upfront after-tax proceeds.

A key concern throughout the process was tax efficiency. We worked closely with the company’s accounting firm to design and implement tax-advantaged strategies aimed at minimizing both immediate and long-term tax exposure. Through thoughtful structuring, we helped ensure that a significant portion of the proceeds would be treated at favorable capital gains rates rather than ordinary income.

Confidentiality was equally critical. Given the company’s strong presence in its local market, any premature disclosure of a potential sale could have disrupted customer relationships and employee retention. To mitigate this risk, we executed a highly controlled and disciplined marketing process. The business was presented under a confidential code name, with all identifying details withheld until prospective buyers were thoroughly vetted. Interested parties were required to execute stringent non-disclosure agreements, and even then, sensitive information—such as customer data, pricing structures, and key personnel details—remained restricted until a qualified Letter of Intent was secured.

To support valuation and strengthen our negotiating position, we partnered with an independent third-party valuation specialist. While historical financial performance provided a solid foundation, the process also required careful interpretation of more nuanced factors—such as normalized EBITDA, non-recurring anomalies, capital expenditure history, working capital requirements, and discretionary owner expenses. Leveraging this comprehensive analysis, we confidently positioned the business in the market and advocated aggressively on behalf of the owners to achieve optimal value.

As is often the case, the headline purchase price was only one component of a successful outcome. We navigated a range of complex deal terms, including earn-outs, post-transaction involvement of the sellers, working capital targets, and the retention of key employees. Our focus remained on structuring a transaction that maximized total after-tax proceeds while minimizing risk and preserving operational continuity.

From initial consultation to final closing, the entire process was completed in just seven months—an efficient timeline that reflected strong preparation, disciplined execution, and alignment among all parties. Routh Exit Advisors successfully guided the owners through a complex transaction, delivering both exceptional value and favorable terms.

Routh Exit Advisors was engaged by the two owners of one of the oldest continuously operating general contracting firms in the Carolinas—an organization with a legacy dating back to 1893. For over a century, the company had built a strong reputation delivering complex projects across university, healthcare, and championship athletic facilities.

Despite its long-standing success, the business faced a critical challenge: succession planning had been delayed for too long. Ownership consisted of one passive partner and one deeply involved operator who had become the driving force behind the company. As he moved well beyond traditional retirement age, his energy and passion for the day-to-day demands of the business began to decline. Compounding the issue, there were no internal candidates—whether family or employees—prepared to step into an ownership role. The path forward was clear: a third-party sale, executed with urgency and precision.
We began by engaging a trusted, independent valuation specialist with deep expertise in general contracting businesses. Together, we developed a normalized financial profile, focusing on a five-year average EBITDA to establish a credible baseline for valuation. A critical component of this process was addressing the financial distortion caused by the COVID-impacted year. We built a well-supported narrative to justify excluding this anomaly, ensuring that the company’s true earnings power—and corresponding value—were accurately represented to the market.
With a strong valuation foundation in place, we launched a targeted buyer outreach strategy. Our focus was on identifying well-capitalized regional and national general contractors seeking expansion into the rapidly growing Carolinas market. This required more than simply presenting the company—it involved positioning the region itself as a strategic opportunity. We framed the acquisition as an “accelerated market entry” solution, allowing buyers to bypass the time, cost, and risk of building a presence from scratch.
We quickly identified and engaged multiple qualified buyers—each with over $200 million in annual revenue, a clear growth mandate, and no existing footprint in the region. Following a disciplined vetting process and execution of strict non-disclosure agreements, we coordinated a series of introductory meetings designed to assess both strategic alignment and cultural fit.
The market response was strong. Within just three months of launching the process, we secured a Letter of Intent from a highly qualified buyer. The transaction proceeded efficiently through due diligence and closed three months later at an optimal valuation.
Beyond price, we negotiated highly favorable terms for the seller. This included a clearly defined 12-month transition period and minimal reliance on earn-out structures, reducing post-closing risk and uncertainty.

When the third-generation owner of a family-operated commercial plumbing company—serving its community for nearly 80 years—reached out to Routh Exit Advisors, his goal was simple: step away from the business he and his wife had led for over three decades and spend more time traveling and enjoying life with their grandchildren.

While their priority was to maximize upfront value and transition out of daily operations quickly, they also cared deeply about what would happen next. Preserving the company’s culture and protecting the employees who had helped build its legacy were just as important as the financial outcome.

A Thoughtful, Strategic Approach

We began by partnering with an independent valuation specialist to establish a clear and realistic range of value. With a strong track record of consistent profitability, the company was well-positioned in the market.
From there, we developed a comprehensive Confidential Information Memorandum (CIM)—a carefully crafted document designed not only to present the opportunity, but to attract serious, qualified buyers. This included insights into the company’s history, services, geographic reach, financial performance, and preferred transition structure. Throughout the process, strict confidentiality was maintained to protect employees, clients, and ongoing operations.

Finding the Right Buyer—Not Just Any Buyer

Identifying the right partner required more than financial capability. We carefully vetted prospective buyers based on four key criteria:
A genuine appetite for growth in the market
Realistic expectations on valuation
Proven ability to finance the acquisition
A cultural fit aligned with the company’s values
For the owner, cultural alignment was non-negotiable. He wanted assurance that his employees would be cared for and that the family-oriented environment he had built would endure. Balancing this priority with achieving maximum value required a highly intentional, dual-focused approach.

Guidance Every Step of the Way

For our client, selling a business—and especially navigating due diligence—was entirely new. Our role extended far beyond brokerage. We acted as advisors, educators, and advocates throughout the journey.
We coordinated closely with attorneys, CPAs, and the buyer, ensuring clear communication at every stage. Complex financial and legal concepts were translated into straightforward, practical terms, so our client always understood what was happening and what to expect next.

A Successful Outcome

Within just eight months, we successfully identified the right buyer and completed the transaction. The result was a strong financial outcome paired with confidence in the company’s future.
Today, the owner and his spouse are transitioning gradually through a short-term, part-time role, while looking forward to the next chapter—filled with travel, family, and well-earned time with their grandchildren.