Business Overview

This established merit-based electrical contractor business for sale in Illinois has been providing quality services to commercial, industrial and residential customers for 40 years. Services include running wiring for construction projects including 208/480 voltage and 5K/12K voltage, lighting installation and repair, energy-efficient upgrades, wiring for commercial, industrial, and residential electrical installation. The business has built a solid reputation due to their top-quality workforce known for their ability to complete jobs in a cost effective and timely manner and has a large amount of work contracted to generate reliable revenue well into 2023.

Financial

  • Asking Price: $4,695,000
  • Cash Flow: $1,146,505
  • Gross Revenue: $3,846,411
  • EBITDA: N/A
  • FF&E: $1,322,830
  • Inventory: $69,042
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:16,900
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is based in an easy-to-access facility with ample parking for customers and support vehicles. The main office/shop is approx. 4,800 sq. ft. and includes a modern, finished office space. There is also an adjacent 2,100 shop and storage building, as well as a 10,000 sq. ft. for storage building/warehouse for indoor vehicle parking. The property is seller owned. A new owner could purchase the real estate or establish a lease with terms to be determined.

Is Support & Training Included:

Negotiable, owner willing to maintain Master Electrician license to support new owner.

Purpose For Selling:

The business is based in an easy-to-access facility with ample parking for custo

Pros and Cons:

The business is the only non-union electrical contractor capable of profitably managing medium to large electrical construction projects in the area. Because of the non-union status, there is more flexibility and efficiencies that can be offered to customers such as beating deadlines or the ability to change out personnel on jobs. Additionally, the business continually works side by side with other union general and trade subcontractors without issues.

Opportunities and Growth:

Due to their established reputation, the business receives many referrals that keep them busy. As the business has an excellent closing rate on bids they place, Industrial business growth could occur by putting a focus on government contract opportunities. A new revenue stream could occur through adding routine service contracts for residential clients or by adding other home maintenance services. Additionally, with the significant demand for energy efficient/green lighting solutions, the business can leverage its highly trained workforce to take on more of these high margin jobs to increase profitability.

Additional Info

The venture was started in 1982, making the business 40 years old.
The transaction shall include inventory valued at $69,042, which is included in the listing price.

The business has 20 employees and is situated in a building with disclosed square footage of 16,900 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 absolutely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current reduction in incomes, or a range of various other factors. This is why it is extremely essential that you not count completely on a vendor's word, yet instead, use the seller's response together with your general due diligence. This will repaint an extra sensible picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money in order to cover points like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that earnings margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in new clients? Often times, companies have repeat customers, which create the core of their day-to-day earnings. Particular aspects such as new competition growing up around the location, roadway building and construction, and staff turnover can influence repeat consumers and also adversely influence future revenues. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning customer base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical home income impact future earnings potential?