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Nov 19, 2019Buyer Benefits:
1) Substantial backlog with a strong customer retention for 20+ years
2) Motivated owner accommodating buyer in every aspect of the transition
3) Acquisition financing approved for 75% of asking price – 72% ROI in Year #1

This long-time established Electrical Contractor provides reliable engineering, design and construction services to commercial and industrial customers. The firm enjoys significant operating margins and documented profitability. The company has a substantial pipeline of ongoing business and an impeccable long-term customer base that will be transitioned at the time of transfer. This business operates from a 7,500 sq. ft. leased warehouse with office space.

The company enjoys a strong competitive advantage by offering a full service approach (design to construction) to a stable customer base, some of which have been with the company since inception. The company has been selective in accepting private work leading to zero default in A/R for the past two years, in addition to focusing on high margin private jobs (with absolutely no bidding on public work). Further, the firm holds licenses and has many approved vendor qualifications – providing natural sales growth opportunities moving forward.

It is projected that a new owner will obtain additional growth by adding personnel with a minimal investment of $100k. The company projects a revenue growth rate under such premise of more than 10% per year. With a more concerted marketing effort and aggressive bidding approach, revenue growth of 20% per year can reasonably be expected.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm. A full valuation report is included in the prospectus. There is $634k in Net Working Capital plus another $427k in Fixed Assets included in the deal. The business is pre- qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner-operator will obtain more than $750k benefit in after-acquisition-debt cash flow in Year #1 – a 72% return on equity investment.

At this time, the owner wants to step back from the day-to-day responsibilities and provide a comfortable, gradual transition period. Seller will consider a consulting agreement for an extended period of time or an earn-out scenario to facilitate the transfer of the business to a new owner. In addition, a very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.

(ALL DATA BASED ON SIGNED TAX RETURNS)

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