Under LOI in FL: Metal / Glass Manufacturer - SEEKING Advice / DD

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July 25, 2025

by a searcher from University of California, Santa Barbara in Miami, FL, USA

I'd like to learn more about the risk & growth opportunities in the space. Specifically, managing working capital and the bidding processes with GCs on primarily new construction.
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Reply by a searcher
from Lehigh Univervsity in Boston, MA, USA
I acquired a flooring company on May 1. My advice is to bring a war chest of working capital. Find out what "normal" working capital is and then bring 2x-3x. You may not be in a normal scenario for 3-6 months when AR is finally turning into cash. If you win a bid, you most likely are one of many subcontractors in a large project. GCs collect bills once a month, and will pay your invoice in 45 days, best case. Industry standard is to also hold retainage (5%-10%) of your contract in reserve until the total project is complete. You will have outlaid money for materials, labor, plus spread on general expenses...that you won't recoup for months. This can keep competition low as many businesses cannot handle the waiting period. Be prepared and you can take advantage. If you're not, then you could be at best impeding future sales and at worst insolvent very quickly.
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Reply by a searcher
from University of Central Florida in North Palm Beach, FL, USA
Hi Jeremy, i am a GC. Happy to answer any questions you have. You are smart to be thinking of your working capital. Payment can be slow in the new build space. Billing for your materials, general conditions, time spent on shop drawings, stored materials with a proper bill of sale and insurance will keep you cash positive. Lots of work goes into your product before it hits the jobsite and physically gets installed, and you should not sell yourself short on your billings related to those efforts. Hope this helps
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