The company provides a full range of electrical services throughout the Denver Metro area. They get plenty of kitchen remodels basements and bathrooms to fill in in between the big projects. They work on both remodels and new construction for high end homes.
2018’s earnings were 203,282 from revenues of 854,493. The seller is asking for 325K which is less than 1 3/4 times the earnings. In 2017 his earnings Plus, he currently has a record amount of contracted future work with almost 450K in work in progress. He likes the work but doesn’t like being an owner. He wants out. This is priced lower than any listing that I have ever represented. It is priced well below the market.
The owner is not in the field doing electric work except for very small service calls once in a while. He works out of his house and orders supplies, pulls permits, coordinates inspections, and does the bidding. He has developed a very simple estimating module that can be taught to the new owner relatively quickly. The bidding process is almost entirely “negotiated” work as opposed to competitively bid work based on this companies long term relationship with most of their customers. He has 4 full time electricians, two journeymen and two apprentices, and two part time. One employee is ready and capable to be promoted to a foreman and runs his own jobs. The buyer can use the Sellers masters license until they get their own.
The owner bought this company in 2016. He believes all of his employees will stay which is what happened when he bought the company. The employees are very loyal and hard workers and will be a huge asset for the new owner. He is selling because he is an introvert and has not enjoyed dealing with customers directly. He also wants to spend more time with his 3 children.
The buyer will get approximately 55K in current value assets made up of 3 vans, 1 truck, along with both equipment/tools (and inventory. The company has a great reputation with a long-standing and recurring customer base.
He will help the new owner transition the business for as long as they would like and is confident that it will be a smooth transition. The company has the BBB A+ rating, customers, and reputation. He will sign a non compete and offer full indemnifications.
Location: Denver, CO servicing all of the West Metro Denver Area.
The Sales Price has been reduced from $450K to $325K which includes all assets debt free.