How much does a Asphalt Paving Company cost to buy?

A typical Asphalt Paving Company sells for 2.5x to 4.5x seller's discretionary earnings. With estimated SDE of $216K, expect to pay roughly $540K to $972K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Asphalt Paving Company?

Startup costs range from $100K to $750K depending on location, equipment, and scale.

Service

Asphalt Paving Company

Q: What are the profit margins for a Asphalt Paving Company?

The average profit margin for a Asphalt Paving Company is around 18%. Main costs are asphalt materials, equipment ownership or rental, trucks, fuel, payroll, workers comp, and jobsite insurance. Live search results surfaced a Phoenix-area paving company listed at $4.4M and BizQuest snippets with around $2.83M in sales and roughly 31% EBITDA, which supports a wide but meaningful financial range for well-run operators.

Unglamorous heavy work, big contract values, and repeat parking-lot pain every few years

Bottom line

Worth studying, but do not buy without strong local proof.

Asphalt paving companies handle parking lots, driveways, resurfacing, grading, patching, and small roadwork for commercial property owners, HOAs, municipalities, and general contractors. It is capex-heavy and operationally messy, but buyers who can estimate well and keep crews productive can build large, durable cash flow from unsexy local demand.

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Acquisition score

Strong

Avg Revenue

$1.2M

Profit Margin

18%

Acquisition Multiple

2.5x - 4.5x

Startup Cost

$100K - $750K

How It Works

The business bids resurfacing, grading, patching, sealcoat-prep, and paving jobs for property owners and contractors. Jobs are quoted by square footage, tonnage, scope complexity, and mobilization costs. Revenue scales via estimator relationships, fleet utilization, and winning larger commercial contracts without blowing labor or material assumptions.

Revenue Range

Low End

$400K

Typical

$1.2M

High End

$3.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 238990 · All Other Specialty Trade Contractors

Deals tracked

729

295 in last 24 mo

Median loan

$660K

$305K–$1.7M p25/p75

Implied deal size

$777K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

218

$500K–1M

158

$1M–2M

131

>$2M

156

Deal Flow Over Time

12-month momentum

-12.1%

deal volume vs prior 12 mo

Median loan Δ

+40.2%

138 recent · 157 prior

Financing Profile

Median rate

9.50%

19% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

The Huntington National Bank111

Live Oak Banking Company110

Old National Bank27

First Internet Bank of Indiana24

Beacon Bank and Trust19

Where deals happen

FL113

CA54

TX53

MN38

PA31

CO31

NC29

WA27

IL26

WI25

Franchise vs independent

Franchised acquisitions finance at $620K median vs $671K for independents — a -8% franchise discount. Franchises make up 8% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	TN	$447K	$526K	2	—
Mar 2026	CA	$350K	$412K	2	—
Mar 2026	VA	$300K	$353K	15	—
Mar 2026	CO	$545K	$641K	2	—
Mar 2026	MA	$1.6M	$1.9M	23	—
Mar 2026	VA	$4.2M	$5.0M	15	—
Mar 2026	NC	$2.3M	$2.7M	6	—
Mar 2026	OH	$25K	$29K	3	—
Mar 2026	OH	$210K	$247K	3	—
Mar 2026	MN	$855K	$1.0M	4	—

Volume rank #6/544Deal-size rank #291/544Momentum rank #216p90 loan: $2.9MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+High-ticket projects can move annual revenue fast
+Commercial clients and GCs create repeat bid flow once trusted
+Adjacent upsells include crack sealing, striping, grading, and maintenance contracts
+Local reputation and execution become a real moat in fragmented markets

Cons

-Equipment and working-capital needs are much heavier than most service businesses
-Weather, scheduling delays, and crew utilization can hurt profitability
-Bidding mistakes get expensive quickly
-Safety, fleet, and jobsite management add operational complexity

Best For

Experienced operators or buyers with construction estimating discipline who want a larger-scale local service business rather than a tiny owner-operator trade

Operating Costs

Main costs are asphalt materials, equipment ownership or rental, trucks, fuel, payroll, workers comp, and jobsite insurance. Live search results surfaced a Phoenix-area paving company listed at $4.4M and BizQuest snippets with around $2.83M in sales and roughly 31% EBITDA, which supports a wide but meaningful financial range for well-run operators.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-8397/mo

after debt service

Deal price — $2.4M

Range: $2.4M (2.5×) to $6.6M (4.5×+)

Down payment — 15% ($360K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$360K

15% equity injection

Loan amount

$2.0M

85% SBA-financed

Monthly payment

$26K/mo

$1.1M total interest

Monthly profit

$18K/mo

at 18% margin

Monthly cash flow after debt service

$-8397/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.