Business Overview

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BUSINESS HIGHLIGHTS

Founded in 1998, this 22-year-old mid-Atlantic based Company is a full-service electrical contractor that offers complete coverage for industrial and commercial properties and specializing in high-difficulty government work. The Company offers a wide range of electrical services including repairs, replacements, upgrades, installations, wiring, rewiring, designs, layouts, maintenance, panels, breakers, lighting, remodeling, renovations, and more. The Company has a stellar reputation for integrity, high-quality craftsmanship, and excellence in project management.
The Company is involved in two distinct activities: commercial construction and service, as well as consulting uninterrupted power systems (battery), and solar/generator work. The journeyman electricians at the Company have an average of 15 years of experience in the field with real, provable results.

As a union contractor, the Company is typically able to compete as a low-cost provider for union government contracts, with the ability to influence the prevailing wage. The business has been on an upward trajectory since its inception.

INVESTMENT APPEAL

-Longstanding Business:
The Company has been around for 22 years! It is highly reputable and is well known in the industry.

-Self Sufficient Operation, Not Highly Dependent On Ownership:
The Company has a very robust management structured with highly qualified and reliable personnel such that it can run well without ownership’s presence. It currently runs exactly that way.

-Strong Client Relationships:
The Company has built an extensive customer list and good industry relationships since its inception. The customer base is loyal, which allows the Company to save marketing costs that competitors must foot, both in acquiring new customers and in obtaining repeat business from existing customers. Specifically, the Company’s key customer, the one of the world’s most high-profile medical institutions, has been with the Company for over 20 years.

-High-Caliber and High-Tenured Staff:
The Company fosters a workplace where it’s extremely experienced and talented personnel are able to thrive and grow, and therefore remain long term. Most supervisors have over 10 years of experience with the Company, with many more employees having long tenures within the Company and industry.

-Management Will Remain through Transition:
Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.

-Strong Bondability:
The Company has a high bonding capacity due to its proven track record of finishing projects within project requirements, having a skilled and experienced workforce, and having strong financials.

-Turnkey Capabilities:
As a one-stop shop, clients often find it convenient and more affordable to find an array of offerings under one roof.

-Outstanding Growth Opportunities:
There exist several opportunities for the Company to significantly increase revenue and profit, including leveraging the Company’s proven reputation to pursue and penetrate new and existing markets. These opportunities are easily attainable given the appropriate investments in capital and human resources.

-Strong Earnings:
The Company has experienced strong EBITDA margins averaging 9.1% during the historical period. Ignoring 2020’s pandemic related decrease in margins, the Company experienced 12.2% earnings in 2018 and 9.6% in 2019. Company earnings are projected to increase to 10.0% of sales in 2021, and grow consistently year-over-year during the pro forma period.

-Strong Balance Sheet:
In the latest year, the Company had minimal interest-bearing debt, and adequate working capital. The Company has historically faced no liquidity or solvency issues.

-Modest Ongoing Capital Investment Requirements:
The Company has very modest ongoing capital expenditures. To support pro forma growth, only modest annual capital investment of $37,000 is required in order to reach the pro forma sales figures. Capital expenditures are used to purchase additional or replace existing utility vehicles.

-Significant Projected Growth:
Due to comprehensive in-house capabilities, market diversification, being in an “essential industry” with tremendous presence & experience, and ongoing customer relationships, during the 2022 through 2026 time period, the Company’s revenue and adjusted EBITDA is projected to grow by 30%.

-Strong Backlog:
The Company has developed a strong backlog in excess (and growing) of $5,123,115 of projects expected to be completed in the remaining months of 2022.

Financial

  • Asking Price: N/A
  • Cash Flow: $708,000
  • Gross Revenue: $6,200,000
  • EBITDA: $708,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Business is operated from a 1,500 square foot warehouse and office in Gaithersburg, Maryland, owned by the business,

Is Support & Training Included:

The Seller is proud of the business they've built. Their primary goal is to make sure the new Buyer is successful. Hence, they will stay on as long as the Buyer needs them.

Purpose For Selling:

Retirement

Additional Info

The venture was started in 1998, making the business 24 years old.

The company has 35 employees and is situated in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is very crucial that you not rely entirely on a seller's word, however rather, utilize the vendor's answer combined with your overall due diligence. This will paint a much more realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that revenue margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their daily revenues. Particular aspects such as brand-new competitors sprouting up around the area, roadway construction, and also personnel turnover can impact repeat clients and also adversely affect future earnings. One vital point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the possibility to construct a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the local average family income impact future revenue prospects?