Business Overview

The subject company provides audio and visual systems, low voltage contracting services, and security guard forces. The company mission is to provide high quality, customized security systems and controls to its customers. Comprehensive and customized service packages give this company a competitive advantage in the industry. The company began 30 years ago as a subcontractor to larger prime contractors providing skilled technical labor and has expanded to provide consultation, design services, equipment sales, and system operations to end-users, in addition to subcontracting to the regions elite systems integrators, general contractors, architectural and engineering consultants, and project managers.

Financial

  • Asking Price: $4,800,000
  • Cash Flow: $1,450,000
  • Gross Revenue: $4,500,000
  • EBITDA: $1,200,000
  • FF&E: $300,000
  • Inventory: $400,000
  • Inventory Included: N/A
  • Established: 1993

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,200
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business real estate has been recently acquired by the current business owner within a separate legal entity. The real estate may be acquired at appraised market value or leased at a base rent of $5,633 per month. A long term lease is available. The offering price shall include all business furniture, fixtures, and equipment. The office and warehouse building is in very good condition, having been renovated when acquired.

Is Support & Training Included:

Owner will provide transition assistance and support thereafter as negotiated with buyer.

Purpose For Selling:

Quality time with family and start up business.

Pros and Cons:

Although services can be provided nationwide, the company is ideally positioned both physically and strategically to benefit from the huge Mid-Atlantic area demand. The company's current and past customer mix includes federal and state government agencies, corporate and business offices, educational institutions, athletic venues, hospitality facilities, and multifamily residential complexes. Company's strengths include a huge portfolio of referral clients and the cost efficiency created by design and systems sharing of common infrastructure.

Opportunities and Growth:

The Mid-Atlantic region growth has offered many more opportunities for the company's products and services than the owner has desired to participate. The opportunity to scale the business to much larger revenue is available with additional sales staff and technical field labor.

Additional Info

The company was founded in 1993, making the business 29 years old.
The transaction doesn't include inventory valued at $400,000*, which ins't included in the asking price.

The company has 35 employees and is located in a building with estimated square footage of 5,200 sq ft.
The real estate is leased by the business for $5,633 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 completely different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current reduction in incomes, or a variety of various other reasons. This is why it is very crucial that you not rely totally on a seller's word, however rather, use the vendor's response along with your total due diligence. This will paint a much more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in brand-new clients? Most times, companies have repeat clients, which create the core of their daily earnings. Particular elements such as brand-new competitors sprouting up around the area, roadway building, and personnel turnover can impact repeat customers and adversely impact future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the regional average house income impact future income prospects?