National Supplier of LED Lighting Products for Commercial, Retail and Government Clients located in Denver CO

Financial & Assets Details

About the Business

Business Description

Update 5 22 23: The trailing 12 months revenues to March 31st were 683K and earnings of 185K both up 20% with a look of work in progress and upcoming signed contracts indicating the growth rate will increase in the future. The owner also added a “Statement on why the company is a lucrative Investment". The April update will increase the revenues and profitability when ready.

For Sale:

DENVER ENERGY EFFICIENT LIGHTING CO

National Supplier of LED Lighting products for commercial, retail, and government clients. The company provides lighting assessment, cost effective energy efficient solutions, rebate processing for retrofit and new construction, and have expert installers.

The earnings for 2022 were 159K from revenues of 584K. This company is being offered at 485K plus their cost of inventory which averages 87K.

Here's the link to energize Denver program requiring commercial and multi-unit buildings to switch to LED lighting by 2025:
https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Climate-Action-Sustainability-Resiliency/High-Performance-Buildings-and-Homes/Energize-Denver-Hub/Buildings-5000-24999-sq-ft/Performance-Requirements

2/3rds of their customers are repeat customers which provides a nice base of valuable recurring revenues. The owner states: “We partner with utility companies that have incentive programs. So, if a customer purchases LED lighting to replace a non-LED lighting, they're eligible for rebates if their utility company is part of the lower energy incentive program. Generally, they can get back up to 60% of the lighting cost. There's also an instant rebate program we have been accepted into which provides an instant rebate to customers at the time of purchase of certain products." Plus, the new Inflation Reduction Act and the 2005 Energy Policy Act both feature tax credits for both consumers and businesses designed to increase energy savings through investment in updated energy efficient lighting, etc. This should increase demand in 2023 and help the new owner.

This is a modern, proactive, energy saving, company started in 2018 in their current location. They have increased their earnings every year, increased their customer base year over year.

The business has been easy to grow and is scalable with low overhead because they act as a distributor/reseller. They emphasize quality with products. Since energy efficient lighting is all that they do, they also carry products that most of their competitors don’t. For example: Solar pole lights, wet/hazardous location lights, dark sky lighting, and lighting with various types of “smart” controls.

The sales price is 485K plus the cost of their inventory which is currently estimated to be around 87K. The sales price includes all FF & E which includes tools, POS system, small equipment, displays, racks, etc which is estimated to be worth 25K to 35K.

They have an excellent Google Rating and a 5-star Yelp Rating which will help with future marketing. The two active owners will assist with the transition and training.

Location: Denver, CO

Details:

The company sells but is not limited to energy related products from leading vendors/manufactures in the LED marketplace.
The company is currently owned by one owner who manages the business. They also have independent contractors who are loyal and very skilled at installing the products that they sell and they're also customers.

Growth potential: They have no salespeople. The buyer could increase revenues by hiring salespeople, implementing an advertising, and marketing program, expanding their product lines into the residential market. The new owner can greatly increase revenue stream by utilizing 2 additional means which the owners will share more with buyers.

The company is an LLC with a great reputation with excellent customer service. They have a stellar worker’s safety history and have never had a legal issue.
The owner carries the following certifications: SBE, DBE, EBE, MBE, WBE, and WOSB. The company is certified through the City and County of Denver as Small Business Enterprise (SBE), and Emerging Business Enterprise (EBE). Although certification may help the company with some projects, the bulk of the business is outside of these certifications.

They have a lease in a large commercial building with plenty of parking. It has a large loading dock, and has room for growth. The lease rate is 2132 dollars per month triple net. Their lease is for 1334 square feet and is up in March 2023 but can easily be extended. The landlord has already expressed that he is open to a long-term lease. Yearly increase in rent is around 100 dollars a month.

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

They have no salespeople. The buyer could increase revenues by hiring salespeople, implementing an advertising, and marketing program, expanding their product lines into residential market. The new owner can greatly increase revenue stream by utilizing 2 additional means which the owners will share more with buyers.

Market Competition:

This is a modern, proactive, energy saving, company started in 2018 in their current location. They have increased their earnings every year, increased their customer base year over year.

Location Details:

The company has a lease in a large commercial building with plenty of parking. It has a large loading dock, and has room for growth. The lease rate is 2019 dollars per month triple net. Their lease is for 1334 square feet and is up in March 2023 but will be easily extended. The landlord has already expressed that he is open to a long term lease. Yearly increase in rent is around 100 dollars a month.

Support & Training

Will stay as long as needed

Reason for Selling:

Moving out of state