Business Overview

This very profitable electrical contracting company offers a wide variety of services, including electrical, mechanical, industrial, and engineering services. Their commitment to customer satisfaction and wide array of services allows them to win more jobs and complete a larger share of bids won at attractive margins. They have experienced rapid growth and continue to improve operations making this a very profitable company. The Company has a strong, committed management team in place that allows the company to operate largely independently of the current owner.

Financial

  • Asking Price: N/A
  • Cash Flow: $7,286,335
  • Gross Revenue: $20,558,605
  • EBITDA: N/A
  • FF&E: $3,480,000
  • Inventory: $2,000,000
  • Inventory Included: Yes
  • Established: 2007

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:30,500
  • Lot Size:N/A
  • Total Number of Employees:70
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates from two facilities, each has a combination of high bay warehouse and office space. They both have loading docks and drive-in doors which is great for the Company’s current application. The buildings fit the Company’s current needs perfectly with plenty of room for expansion. One building has solar panels on the roof and two electric vehicle charging stations outside, which serve as great educational tools for customers.

Is Support & Training Included:

12 weeks at no additional cost

Purpose For Selling:

The seller wants to pursue other business interests

Pros and Cons:

They are one of the largest electric contractors in the area and have stellar customer relationships. They outcompete their direct competitors in both price and quality of work/service. Their expanding services allows them to perform work their competitors would have to outsource and allows them to capture a greater share of each job. Industry Overview: Companies in this industry install and maintain electrical wiring and equipment. Major companies include Bergelectric, EMCOR, IES Holdings, MYR Group and Rosendin Electric (all based in the US). Electrical contractors worldwide depend on construction activity as well as demand for renovation. The global volume of construction is forecast to grow by 85% to $15.5 trillion by 2030, according to a report by Global Construction Perspectives and Oxford Economics sponsored by PwC. The largest construction markets -- the US, India, and China -- are expected to account for 57% of global growth. As per Research and Markets' report, the APAC is anticipated to remain as the largest construction market through 2023, driven by the growing urbanization and increase in expenditures on infrastructures and affordable housing projects. The US electrical contracting industry includes more than 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $170 billion.

Opportunities and Growth:

The Company has recently started new service lines that continue to be developed and grown. Additionally, management has identified profitable opportunities that have not yet been pursued that would further support the growth of the company.

Additional Info

The business was established in 2007, making the business 15 years old.
The sale does include inventory valued at $2,000,000, which is included in the requested price.

The company has 70 employees and is situated in a building with disclosed square footage of 30,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 totally different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of various other reasons. This is why it is extremely crucial that you not depend entirely on a seller's word, yet rather, make use of the vendor's response along with your overall due diligence. This will repaint a more practical image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover items like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in new customers? Many times, operating businesses have repeat clients, which form the core of their everyday earnings. Particular factors such as brand-new competition growing up around the area, road construction, as well as personnel turnover can impact repeat consumers as well as negatively affect future profits. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the possibility to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average family income influence future income prospects?