Listing ID: 77395
This is an opportunity to acquire a long established, well respected and profitable electrical contracting business that continues to thrive (even during the pandemic) and drives strong cash flow. Established in 1989, this company has been serving the Los Angeles and Ventura County and surrounding areas handling the needs of businesses and residents alike. Currently 80% of the business comes from commercial accounts – working with local businesses as well as some of the biggest retailers in the world on a consistent basis. They work in Low voltage, Standard 120/240V, 277/480 volt (single and 3 phase, 4-wire systems; Motor Control Centers (MCC) upgrade wiring and components for refrigeration systems, factories and small manufacturing; Install Data Cat6e lines, terminate on patch panels as well as terminal locations. They also install custom LED lighting for restaurants and others per request as well as standard LED parking lot lighting upgrades. While most of their competitors fight it out on price, the Seller states that their margins remain high because they win business on the quality of their work and reputation responding when called with 24-hour service – continuing to impress with their professional approach to their customers. Additionally, they are rewarded with repeat business and referrals time and time again due to the quality of their work and the experience they provide. The Seller is ready to retire and states that he has more work coming in than he chooses to take on – providing a fantastic opportunity to come in an immediately grow the business. This opportunity is so good it is shocking! So, if the idea of building your own electrical contracting business charges you up – reach out for more information!
- Asking Price: $350,000
- Cash Flow: $197,971
- Gross Revenue: $573,735
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1989
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,400
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
This business has a leased location of 3,400 square feet with a total monthly rent of $2,640. The business is with 1 Full-time employee and 1 Part-time employee. Hours of operation 7am-4pm, Mon-Fri. Included in asking price are $100,000 Inventory, $50,000 Leasehold Improvements, and $25,000 Equipment and Fixtures.
30 Days - 30 Hours per week
The company was established in 1989, making the business 33 years old.
The deal shall include inventory valued at $100,000, which is included in the listing price.
The company has 1FT, 1PT employees and is located in a building with estimated square footage of 3,400 sq ft.
The real estate is leased by the business for $2,640 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nonetheless, the real reason vs the one they tell you may be 2 entirely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of other factors. This is why it is very essential that you not rely completely on a seller's word, yet rather, make use of the seller's answer together with your general due diligence. This will paint a more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that earnings margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Many times, companies have repeat customers, which form the core of their everyday revenues. Certain factors such as brand-new competitors sprouting up around the location, road building and construction, as well as employee turn over can influence repeat customers as well as negatively affect future earnings. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the local average house income influence future income potential?