Business Overview

The company is a specialty trade contractor providing installation services for underground utility, fiber optics, and communication systems for commercial applications (fiber optics, copper, and coax), underground construction and installation that includes trenching, plowing, boring, pole line placement, conduit, and manhole construction.

With over $5M in sales and a 30%+ profit margin in 2021, the client base for this directional drilling company consists of major communication carriers and utility companies in the Southeast area (Georgia, Tennessee, Kentucky). This business is recession proof, as wireless carriers and utilities are essential. Nearly 90% of the work is done for a wide range of major communication carriers, and most work is completed by their highly skilled in-house team of 4 people and subcontractors with a crew of 42 (seller has access to to more crews if needed and operated In the past with 4 subcontractors with a 120 employees).
Approximately 90% of work completed is directional drilling and laying fiber optic cables. Work is typically steady throughout the year and most projects are completed in the Southeast area, mostly in Tennessee with several ongoing projects that will go on for the next 5 years+. The current owner does no labor and provides bids and oversight. He is willing to stay on for up to one year to assist with the transition.

Owner oversees the company and its operations, handles all the billing, payroll, account receivables, accounting, and overall management of the firm.

Sales for the last 3 years are as follows:
YTD (January 15th – October 31st) $4,478,256 SDE $1,493,562
2020 $221,356 SDE $67,591
2019 $3,518,755 SDE $929,236
2018 $4,383,802 SDE $1,089,000
2017 $2,932,687 SDE $656,074
2016 $1,597,052. SDE $272,389

The Seller is a sole owner and owns 100% of the subject business being sold. The business is incorporated in the State of Georgia.

The global fiber optics market size was valued at USD 5.41 billion in 2015 and is expected to gain traction over the forecast period: 2018 – 2025.
The global fiber optics market is majorly driven by the pursuit of high bandwidth communication and growing opportunities in the healthcare sector along with increasing government funding in the development of network infrastructure.
The fiber optics industry presents promising growth prospects in view of a combination of factors namely increasing investments and research undertaken by prominent fiber optic cable manufacturers in the industry to develop and upgrade the fiber optics technology application arena.

PROOF OF FUNDS AND SIGNED NDA MUST BE RECEIVED PRIOR TO DISCLOSING ANY FURTHER INFORMATION. THIS IS AN OPERATING BUSINESS; PLEASE REFRAIN FROM SPEAKING TO STAFF OR MANAGEMENT.

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Financial

  • Asking Price: $5,925,000
  • Cash Flow: $1,580,141
  • Gross Revenue: $5,225,000
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Virtual office

Is Support & Training Included:

Will provide support and training to get the new owner up and running, 3 to 6 months.

Pros and Cons:

There is no direct competition, new owners are able to take on as much work as they are able to manage in the southeast and midwest.

Opportunities and Growth:

First, a new owner could capitalize on current resources that allow the team to take on larger or additional contracts throughout the year. Second, increased focus could be paid to building upon current work for other utilities as this company receives many inquiries about availability for this specialization. A third area would be to expand on long-term government contracts (the company was recently approved to bid on government and federal contracts) and projects, this could be a large area for potential growth

Additional Info

The venture was founded in 2012, making the business 10 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell operating businesses. However, the real reason vs the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or a variety of other factors. This is why it is extremely crucial that you not rely entirely on a seller's word, but rather, make use of the seller's answer combined with your general due diligence. This will repaint an extra reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that profit margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be met or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in brand-new consumers? Often times, operating businesses have repeat customers, which create the core of their everyday profits. Certain aspects such as new competition growing up around the area, roadway building, and personnel turnover can impact repeat clients as well as adversely impact future revenues. One vital point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the greater the chance to develop a returning consumer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood average home income impact future income potential?