Business Overview

It has been a great 27 (+) year run for the two founder-owner-sellers of their successful, cash flowing, niche, B to B business offering design, sales and engineering services for sound, video and lighting systems. Now, with retirement in their plans, the sellers look forward to transitioning their business to only its second owner-operator, then retiring after providing the buyer a generous period of transition training.

Located in a desirable Detroit suburb, the business occupies an attractive, late model 11,200 square foot building owned by the sellers. The real estate is available for a long-term lease under favorable terms or it can be purchased in a separate transaction.

The business has a number of complimentary profit centers which are nicely managed by a staff of 12 long-time, loyal, highly skilled, non-union employees with special talents in commercial AV (audio-visual), lighting design, acoustics, and integration for the company’s 3000 (+) database of clients, 50% of whom have been active within the past three years and for which there is no customer concentration. Clients come from a 100 (+) mile radius, and the company’s stellar reputation results in a continuing and growing referral network.

A representative list of services include:
• Equipment sales and rentals (the company is a dealer for most professional lines)
• Service and Repair (the company is certified to work on many equipment brands)
• Training and Installation
• Acoustic Design and Consulting
• Design and Engineering Services for Sound, Lighting, and Video Systems

Typical clients include:
• Education Facilities of All Kinds
• Performing Arts Facilities
• Houses of Worship
• Corporate Offices
• Hospitality Auditoriums

Now, let’s look at the numbers: For the five-year period (ending 9/30/21), the business has had average annual revenues of $4.0 million with SDE (seller’s discretionary earnings – the historic cash flow available to pay an owner-operator and service debt) averaging an impressive $680,000 annually over the same five-year period. The listing price for the business is $1,375,000 based on an attractive 2.0x multiple of SDE.

The seller is contemplating an asset sale in which the seller retains cash and A/R, while retiring all liabilities. The listing price includes:
1. $200,000 (market value) of equipment rented regularly to customers
2. Approximately $75,000 of physical inventory (cost basis – for resale)
3. $100,000 (fair market value) of fixed assets and company vehicles.
4. A meaningful (six figure) seller note available for a qualified buyer.

For more information on this outstanding business opportunity, please contact Steve Kandt (


  • Asking Price: $1,375,000
  • Cash Flow: $680,000
  • Gross Revenue: $4,000,000
  • FF&E: $100,000
  • Inventory: $275,000
  • Inventory Included: Yes
  • Established: 1994

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:11,200
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in a desirable Detroit suburb in an attractive, late model 11,200 square foot building.

Is Support & Training Included:

Transition training plus an additional consulting contract is available for post closing support.

Purpose For Selling:


Additional Info

The company was established in 1994, making the business 28 years old.
The deal will include inventory valued at $275,000, which is included in the listing price.

The company has 12 employees and is situated in a building with disclosed square footage of 11,200 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. Nonetheless, the real reason and the one they say to you might be 2 completely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, recent decrease in profits, or a range of other reasons. This is why it is very important that you not depend totally on a seller's word, however instead, use the vendor's answer in conjunction with your general due diligence. This will repaint an extra sensible image of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that revenue margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract brand-new customers? Many times, companies have repeat customers, which create the core of their day-to-day earnings. Specific variables such as new competition growing up around the location, road construction, as well as staff turnover can impact repeat customers as well as negatively impact future earnings. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the chance to construct a returning client base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the regional average household income effect future income potential?