Full Service Electrical Contractor, Mostly Commercial-Denver CO
Well Established Electrical Contractor comprised of 70% Commercial, 20% Residential, and 10% Service. Serving the Denver Metro area for 11 years.
(This is currently under and LOI which allows us to continue to market but we can’t accept any other offers until the LOI expires)
The trailing 12 month earnings through July 31, 2019 were 356K from revenues 4.7M in revenue. 2018’s earnings were 344K from revenues of 4.4M. This business has been growing at over 30% per year until this year when he decided to sell because he doesn’t think he is good a running a big company. 2019 is up over 2018 both on the top and bottom lines and they do currently have a record amount of contracted future work. The owner started the company in 2007 and has a customer list that has building ever since. To date, the company has never had a need to invest capitol or efforts into marketing, even in its largest growth years. A great reputation in combination with a long-standing and recurring customer base will undoubtedly continue to provide the revenue necessary to thrive.
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 are specialists in a few niche markets including Swimming Pools wherein they have the two largest Pool builders using them exclusively. Other project types include 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 when job site visits may be necessary to upkeep customer and employee relations. He works approximately 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 firm which includes all assets including inventory debt free. This is just over 2 times the earnings which is very inexpensive for a company this size that is growing. Plus, a better operator would be generating much higher profits. This company’s bottom line should be over $500K. Case in point the 2017 new hire that bid several jobs at a loss. 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. This is an S Corp so this can be either a stock or an asset sale.