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Full Service Electrical Company in the Denver Metro Area, Up in Revenues and Earnings

ConstructionFor Sale in CO

Listing ID: 34257 | Broker Listing ID: BLP860945

Financial & Assets Details

$786,000
$232,000
$111,000
$15,000

About the Business

Yes
Yes
2014
4
Yes

Business Description

10-Year-Old Electrical Company comprised of 25% Commercial & 75% Residential

The trailing 12 months revenues were 786K with earnings of 232K as of June 30th. 2023’s revenues were 807K which were over 50% higher than 2022’s with earnings of 221K which were over 80% higher than 2022. This is important since the seller does almost no advertising and doesn’t currently have a website. This is priced at a “below market” multiple of the earnings at only 1.83 times.

This company has a long-term employee who has a “Masters Electrician” license who is happy at the company. This is a huge positive for this opportunity. Plus, the Seller is a “master” electrician, who is amenable to the new owner leasing his Master's license post-closing if it becomes necessary(unlikely).

The company provides a full range of electrical services from restoration, mitigation, whole house/remodeling and new wiring, and is 28% service calls. The company is emphasizing maintenance contracts to increase his percentage of recurring work. These contracts are not signed and enforceable but are meant to motivate customers to call them for their future electrical needs.

Growth Opportunities: The company is presently a Google 5 Star Rated company but doesn't have a website. Setting one up will better take advantage of the company's 5 Star Rating. The new owner can further do pay per click, search engine optimization, trusted 3rd party referral sources like Angie and Houz, social media, online advertising, and can pursue high profit margin electric vehicle charging residential installs. The owner also thinks that the new owner should add more high margin service calls including emergency work and the further development of LED retrofits for both wall packs and parking lot lighting. Other possibilities exist in reaching out to real estate agents and insurance agents to get more mitigation and restoration work from insurance companies. The current reality is that there is a shortage of employees for the service industry and if the new owner can find additional high quality, loyal employees to complement the existing staff, set up a website, then the work will find them. Electricians are in high demand in Denver based on the number of commercial and residential developments, remodels, and service calls. This has been taking place for over 20 years and there doesn’t seem to be any reason for it to stop based on the slow but steady increase in both population and wealth.

The owner is a master electrician and spends most of their time in his home office, but also goes in the field for business development and the estimation of new jobs. The current job demands are approximately 35 hours a week. The company uses a QuickBooks based estimating job/customer tracking program. The use of QuickBooks(QB), already populated with a complete list of products and services, has automated many of their bids, material purchases, and work performed for common installs and services. This QB based system can be used to track all job costing & profit, invoicing, job history, etc, as well as for inventory controls. The techs also use the QB mobile app for time tracking, materials & job notes. This platform can be taught to the new owner relatively quickly by the owner or by the readily available (and free with subscription) QB online training videos. The company has 4 employees including 1 journeyman electrician, 3 electricians, and the owner. The Seller believes that all of his employees will stay post closing.

The current owner is amenable to leasing their license for up to 2 years to the new buyer if he/she needs it. 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 get along and will continue to be valuable assets for the new owner.

The buyer will get 111,500 in current value assets made up of 4 vans along with other assets including large equipment, small equipment, office equipment, tools, and approximately 15K in inventory.

Location: The owner works out of their house with storage units which are used as staging areas. The company lets its employees take their vans home which helps to facilitate this structure. The new owner can run the business from wherever they want to run the business out of.

The sales price is only 425K plus inventory which is estimated to be 15K. This is a below market multiple of the earnings at less than 1.85X the earnings. This will likely be a traditional asset sale with the seller keeping the cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. This will qualify for an SBA loan for a qualified buyer with an anticipated down payment of 44K for the bank plus proof of some working capital.

Details:

They specialize in high end electrical contracting of all types. The company has grown historically based on their reputation through a steady long term increase in referrals along with steady reputation building in their market.

The owner is proud of the company’s success and reputation but has decided to sell for quality-of-life reasons to spend more time with family. They will help the new owner transition the business for as long as the new owner needs and is confident that it will be a smooth transition. The new owner will also have a team of loyal, trustworthy, competent, and reliable employees to help them learn and grow the business.

The broker is available at any time to discuss your interest in this offering.

Thank you for your interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

The company is presently a Google 5 Star Rated company but doesn't have a website. Setting one up will better take advantage of the company's 5 Star Rating. The new owner can further do pay per click, search engine optimization, trusted 3rd party referral sources like Angie and Houz, social media, online advertising, and can pursue high profit margin electric vehicle charging residential installs. The owner also thinks that the new owner should add more high margin service calls including emergency work and the further development of LED retrofits for both wall packs and parking lot lighting. Other possibilities exist in reaching out to real estate agents and insurance agents to get more mitigation and restoration work from insurance companies. The current reality is that there is a shortage of employees for the service industry and if the new owner can find additional high quality, loyal employees to complement the existing staff, set up a website, then the work will find them. Electricians are in high demand in Denver based on the number of commercial and residential developments, remodels, and service calls. This has been taking place for over 20 years and there doesn’t seem to be any reason for it to stop based on the slow but steady increase in both population and wealth.

Market Competition:

The company provides a full range of electrical services from restoration, mitigation, whole house/remodeling and new wiring, and is 28% service calls. The company is emphasizing maintenance contracts to increase his percentage of recurring work. These contracts are not signed and enforceable but are meant to motivate customers to call them for their future electrical needs.

Location Details:

The owner works out of their house with storage units which are used as staging areas. The company lets its employees take their vans home which helps to facilitate this structure. The new owner can run the business from wherever they want to run the business out of.

Support & Training

Will support as long as needed

Reason for Selling:

Wants to spend more time with family

Listing ID: 34257

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