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BIZBITE

Traffic Control & Flagging Company

Construction can't move without you — literally

Bottom line

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

Traffic control companies provide certified flaggers, signs, cones, and temporary traffic management for road construction projects, utility work, and municipal contracts. Every single road project in America requires them by law — yet most people have never considered owning one. With infrastructure spending at all-time highs (the 2021 Infrastructure Act allocated $550B over 5 years), demand is federally mandated and recession-resistant. Small operators can bill $100–$200/hour per flagger while paying them $20–$30/hour.

Acquisition score
Margin · multiple · SBA data
61Strong
Avg revenue
$1.2M/yr
$400K–$4M range
Profit margin
28%
~$336K SDE
Multiple
2–3.5×
of SDE
Est. buy price
$672K–$1.2M
startup: $50K–$150K

How It Works

You win contracts with construction companies, utilities, or municipalities. Your certified flaggers are deployed to job sites to manage traffic flow around active work zones. You provide the labor, signs, cones, and traffic control plans. Billing is hourly or per-project. Repeat business is the norm — construction projects last months or years.

BizBite verdict

Worth underwriting

Traffic Control & Flagging Company has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

61Strong
medium data confidence · 52/100medium financing fit

Why it may work

  • +SBA dataset shows 17 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 561990 · All Other Support Services

Deals tracked
37
17 in last 24 mo
Median loan
$349K
$185K–$1.6M p25–p75
Implied deal size
$411K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
7
$150K–500K
15
$500K–1M
2
$1M–2M
7
>$2M
6

Deal flow over time

12-month momentum
+42.9%
deal volume vs prior 12 mo
Median loan Δ
−73.7%
10 recent · 7 prior

Financing profile

Median rate
10.00%
0% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
7
supported per deal
Top lenders in this space
The Huntington National Bank6
Columbia Bank2
BancFirst2
Milestone Bank2
Meridian Bank2
Where deals happen
FL4
NY3
OR3
MI3
MN3
GA2
OK2
DE2
NJ2
PA1

Franchise vs independent

Franchised acquisitions finance at $317K median vs $390K for independents — a −19% franchise discount. Franchises make up 16% of deals tracked.

Recent comparable deals

ClosedStateLoanImplied deal
Jan 2026MN$349K$411K
Jan 2026MN$30K$35K
Nov 2025UT$185K$218K
Nov 2025CA$235K$277K
Sep 2025KY$734K$864K
Jun 2025DE$3.4M$4M
Jun 2025NJ$1.6M$1.9M
Jun 2025DE$125K$147K
Jun 2025FL$150K$177K
May 2025FL$1.1M$1.3M
Volume rank #167/544Deal-size rank #498/544Momentum rank #80p90 loan: $2.4MData 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.

Deal Calculator

Priced off $336K SDE — can this deal service its own debt?

2.50×
DSCR · Lender-comfortable
Purchase multiple — 2.8× SDE ($940K)
Category range: 2×–3.5× SDE
Down payment — 10% ($94K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 10.00%
SBA median for this category: 10.0%
Loan term — 10 years
SBA median for this category: 120 months
Purchase price
$940K
2.8× of $336K SDE
Cash to close
$122K
$94K down + ~3% closing
Debt service
$11K/mo
$134K/yr on $846K loan
Cash-on-cash
165%
cash back in ~8 mo
Debt service coverage · what the lender sees
2.50×+$17K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

  • +Infrastructure spending drives federally mandated demand — recession-proof
  • +High billing rates vs. labor costs (3–6x markup on flagger wages)
  • +Sticky clients: long-duration contracts with construction firms
  • +Low startup cost vs. revenue potential
  • +Can start with 2–3 flaggers and scale by hiring

Cons

  • -Labor-intensive and dependent on reliable certified staff
  • -Workers comp and liability insurance is a major cost
  • -Seasonality in cold-weather markets
  • -Must be licensed and bonded in each state

Best For

Operators with experience in construction, logistics, or workforce management

Operating Costs

Major costs are labor (flaggers at $20–$30/hr), workers comp insurance (12–20% of wages), liability insurance, equipment (signs, cones, arrow boards), and fuel for trucks. Margins average 25–35% for well-run operations.

Where to Buy

BizBuySell

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Murphy Business

Business broker specializing in service businesses including traffic control

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