Business Overview

This company was founded in the 1970s by the current ownership. They provide a full range of electrical services (installation, service & maintenance) to industrial, commercial, and residential customers. They specialize in providing electrical services to industrial and commercial customers. The company works primarily, directly with the customer and occasionally with general contractors. Their good reputation, high-quality services, and strong relationship building have resulted in a very high percentage of repeat customers every year.

The company is equipped with an experienced non-union team of electricians to run the day-to-day operations of the business. They present many opportunities for new ownership to continue the growth of the business. The current ownership is willing to provide training and transition, as well as, up to 10% of seller financing to a qualified buyer.

Financial

  • Asking Price: $1,298,706
  • Cash Flow: $432,902
  • Gross Revenue: $1,182,109
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 1978

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:7
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The business was started in 1978, making the business 44 years old.
The transaction does include inventory valued at $150,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 completely different things. For instance, they might state "I have way too many other obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is really crucial that you not rely absolutely on a seller's word, yet rather, utilize the seller's response along with your overall due diligence. This will paint an extra reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too tight. Many organisations fall 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 commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be met or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in brand-new customers? Most times, businesses have repeat clients, which create the core of their everyday revenues. Certain variables such as new competitors sprouting up around the location, road building, and also employee turn over can impact repeat clients as well as negatively influence future incomes. One vital thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the opportunity to develop a returning client base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional median home earnings impact future income prospects?