Business Overview

It’s our great pleasure to present this very rare-to-market electrical business with HUGE 45% – 50% PROFIT MARGINS and excellent cash flow. Business sale expected to come with around $300k Receivables.

There are plenty of other electrical contractors in greater Boston but most compete in the new construction arena. Very few are able to compete in the industrial electrical space like this business. ??

The experience of their workforce is unmatched. This business especially caters to VERY LARGE, HOUSEHOLD NAME CUSTOMERS who require certified contractors to work in their facilities. There are very few electrical contracting businesses who have the certifications required (WHICH ARE TRANSFERABLE TO THE NEW OWNER) in the specially tailored safety programs maintained by those customers.

This business has maintained their safety and standard ratings flawlessly for the very high profile customers that they service.??The business has already gone through YEARS of expensive and lengthy certification processes AND IT WILL ALL COME WITH THE BUSINESS YOU ARE BUYING!

The realm that they operate in is very exclusive which allows for a very high percentage of awarded contracts as well as commanding a massive profit margin of 45% – 50%.

Financial

  • Asking Price: $3,300,000
  • Cash Flow: $652,098
  • Gross Revenue: $2,013,912
  • EBITDA: N/A
  • FF&E: $125,000
  • Inventory: $50,000
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:10,000
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

High bay warehouse with 3k SF of office space. Metal sided building in industrial park.

Is Support & Training Included:

Seller will provide industry standard training as well as continued consulting to ensure the smoothest possible transition and strongest possible start for the new owner.

Purpose For Selling:

Retiring

Pros and Cons:

There are plenty of other electrical contractors in greater Boston but most compete in the new construction arena. Few are able to compete with this business in the industrial electrical space.

Opportunities and Growth:

Commercial plan and spec construction (institutional, commercial, scholastic, retail..). Currently the owner has stopped bidding for these jobs as he has started to prepare for retirement. A new owner with more energy and the right systems and people in place should be able to increase revenue by an estimated $2 million+ through these jobs.

Additional Info

The company was founded in 1990, making the business 32 years old.
The sale will include inventory valued at $50,000, which is included in the requested price.

The company has 14 employees and is located in a building with estimated square footage of 10,000 sq ft.
The real estate is leased by the business for $5,820 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell operating businesses. However, the true factor and the one they tell you may be 2 totally different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in profits, or a variety of various other reasons. This is why it is really crucial that you not depend totally on a vendor's word, yet rather, utilize the vendor's solution along with your general due diligence. This will paint a more realistic image of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many operating businesses finance loans in order to cover things such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Most times, operating businesses have repeat customers, which form the core of their day-to-day profits. Certain elements such as new competitors sprouting up around the area, roadway building and construction, and also employee turn over can influence repeat consumers as well as adversely affect future incomes. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning client base. A final idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the regional median family income impact future income potential?