Listing ID: 76801
Contact business broker for more information regarding this well-established and highly
profitable generator sales, installation and service business for sale located in Northern
California. Given the instability and uncertainty with power utilities and recent policies to shut
down power grids during high-wind/fire conditions, this business is a great opportunity to
acquire a well-established and highly profitable business with incredible growth opportunities. Only serious buyers who have or can obtain a C-61/D21 for equipment installation or C-10 electrical contractor license should inquire.
Established 40 years ago in the early 80’s, this business provides stand-by power, prime power,
portable and permanent generator sales, installation and maintenance services to the
telecommunication, broadcast, healthcare, public utilities and emergency response industries as
well as the residential, marine and RV markets. Company dominates its geographical market in
Northern California. Company is an approved installation and service dealer for two top-line
generator manufacturers for generators, transfer switches, and switchgear but also provides
maintenance and repair services for all generator manufacturers. Company services generators
from 6Kw to 2.7 Mw and transfer switches from 40 Amps to 4,000 Amps. Installation services
are turnkey from engineering to start-up and testing.
The owner is selling because he is ready to retire but will assist with a smooth transition to new
owner. Company has highly experienced technicians. A C-61/D21 contractor license for
equipment installation is required to operate business but could also be operated with a C-10
Contact business broker to complete Non-Disclosure Agreement and receive more information
regarding this well-established and highly profitable generator sales, installation and service
business for sale located in Northern California.
- Asking Price: $2,400,000
- Cash Flow: $638,000
- Gross Revenue: $2,150,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $25,000
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
2 weeks at 40 hours per week
The venture was established in 1980, making the business 42 years old.
The sale doesn't include inventory valued at $25,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. However, the real reason vs the one they say to you might be 2 entirely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or an array of other factors. This is why it is really essential that you not depend completely on a vendor's word, however rather, use the vendor's answer together with your overall due diligence. This will paint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points like supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest that profit margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new customers? Many times, companies have repeat clients, which form the core of their daily earnings. Certain aspects such as brand-new competitors sprouting up around the location, road building, and employee turn over can impact repeat clients as well as adversely influence future profits. One vital point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the better the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? How might the regional mean family income influence future income prospects?