Business Overview

This Business owner did the right thing for his employees in 2020. All of his people kept their jobs and benefits even with a decrease in work. Short term pain for a long term gain. This is a Commercial Electrical Contracting business. Most of the business is performing work for large general contractors in the Atlanta area.

Financial

  • Asking Price: $795,000
  • Cash Flow: $85,385
  • Gross Revenue: $2,905,942
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $500
  • Inventory Included: Yes
  • Established: 2001

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:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates out of a 1900 square foot facility. This facility is leased at $1,325 per month. The lease expires in June 2023.

Is Support & Training Included:

Will train for 12 weeks @ $0 cost. This company supplies and installs electrical distribution equipment for commercial projects. In order to do the electrical work, someone in the business must hold the Master Electrical License.

Purpose For Selling:

The owner wishes to retire.

Pros and Cons:

There are several other Electrical Contractors in the metro Atlanta area.

Opportunities and Growth:

There is a potential to grow the business. A new owner would only need to hire additional qualified people and bid more jobs.

Additional Info

The business was started in 2001, making the business 21 years old.
The sale will include inventory valued at $500, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 totally different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or a variety of other reasons. This is why it is really vital that you not count totally on a vendor's word, but instead, use the seller's solution in conjunction with your overall due diligence. This will repaint an extra sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover points such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in new clients? Most times, operating businesses have repeat consumers, which create the core of their daily earnings. Specific elements such as new competitors sprouting up around the area, roadway building, and employee turn over can impact repeat consumers as well as adversely affect future revenues. One important thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the greater the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the regional typical household earnings influence future earnings prospects?