11 Yr Old Electrical Contractor 70% Comm, 20% Res, 10% Service-South Denver, CO
2018’s earnings were 344,109 from revenues of 4,529,437. The seller is asking for 850K which is less than 2 1/2 times the earnings. This business has been growing at over 30% per year. They also have a record amount of contracted future work. The owner started the company in 2007 and has been steadily growing it ever since. To date, the company has never had a need to invest capitol or efforts into marketing. A great reputation in combination with a long-standing and recurring customer base will undoubtedly continue to serve the new owner well.
The company provides a full range of electrical services throughout the Denver Metro area. They work on both new construction and remodels of all types and sizes. The majority of their projects are between 100K and 400K in contract value. They specialize in hotels, restaurants, retail stores, custom and semi-custom homes, multifamily housing, etc. 50% of their revenues are recurring from long term customers which is invaluable in this industry.
The owner is not in the field doing electrical work except sporadically to maintain customer and employee relations. He works an average of 45 hours a week. The company employs a project manager who oversees the majority of the company’s projects from start-up through close-out. There are two superintendents on staff who oversee the work in progress, one of whom holds a masters electrical license. They utilize a very simple industry standard estimating program that has been perfected and managed by the on staff estimator and can also be taught to the new owner relatively quickly. The company has 35 employees including 30 full time electricians, a project manager, two superintendents, a warehouse manager, an estimator, and an office manager. The company has more than one master’s license which a buyer can utilize. In 2017, the company employed an unsuccessful estimator, resulting in significant losses that year. In July of 2017 the individual was replaced with a seasoned estimator who has proven to be efficient, organized, and extremely successful at estimating and contract negotiation. The owner believes all employees are happily employed and will remain with the company after the sale. The employees are all very loyal and hardworking individuals who will continue to be assets for the new owner.
The buyer will get approximately 170K in current value assets made up of 7 vans, 5 trucks, 1 sedan, 3 trailers, 1 skid steer, 1 excavator, 2 trenchers, 3 scissor lifts, 1 forklift as well as a multitude of tools and inventory.
Location: South Denver
The sales price is 850K which includes all assets debt free. The seller will be keeping their cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free.