North of Denver Mostly Commercial Electrical Contractor, 31 Percent Profit Margin, Well Established

Financial & Assets Details

About the Business

Business Description

13-Year-Old Electrical Contractor comprised of 65% Commercial, 10% Residential, and 25% Service

The 2022 earnings were 402K from 1.28M in revenue which is a 31% profit margin. 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 from a new big box commercial electrical install to doing 43 electric vehicle home chargers last year. They work on new construction, remodels, & tenant finishes of all types and sizes. They have a high percentage of recurring work because they are a preferred electrical company which contracts directly with electric vehicle companies and dealers. These types of home installs often result in the residents calling them for their future electrical needs. They also have relationships with hot tub retailers for referrals on hot tub electrical. Many of their customers become repeat clients and they continue to add to their customer base.

Growth Opportunities: They are getting a reputation locally for electric vehicle charging experts and are starting to get an increasing amount of work for both residential installs but also install for commercial building and parking lots that want to add chargers.

Electricians are in high demand North of Denver based on the quantity and size of the many commercial and residential developments that will be taking place for the next 25 years. They have started doing more service work based on the high profit margins, increased cash flow, and greater exposure to more customers. Northern Colorado lacks an electrical contractor that really stands out as a service contractor. There is potential to utilize this space.. The new owner can expand this dramatically based on both the current and anticipated future demand. They also bid and got their first big commercial job in 2022 and it went very well. They have started to bid others and just came in 2nd for a new commercial building, more bidding through their estimator, who they subcontract and work with on a per job basis. They’ve worked with this estimator for most of 2022 and will continue to use him moving forward. He provides a fast turnaround with extremely accurate take offs that can be customized to the company’s specific needs.

They have a great reputation based on their 4.8 star Google rating with 41 reviews. They have hired a local marketing professional which includes search engine optimization, Facebook updates/postings, website management, and are considering paying for the new Google guaranteed pay per click program which is a trust-based referral website like Angi’s where they do a background check on all companies that are allowed to participate.

One of the owners is a master electrician and spends most of his time in the office, but also does both field work including estimating new jobs consisting of smaller residential remodels, basement finishes, EV installs, hot tub installs, etc. The larger jobs are sent to the estimator. He works approximately 30 hours a week with 12 of those in the field. He uses an industry standard estimating job/customer tracking program which was created by electricians, and have automated many of their bids, material purchases, and work performed for common installs and services. The software is used to track all job costing & profit, invoicing, job history, etc. It can also be used for inventory. All of the techs use the mobile app for time tracking, materials & job notes. This can be taught to the new owner relatively quickly by the owner or by one of their training videos. The company has 9 employees including 2 journeymen electricians, 3 electricians who will be journeymen soon, 1 apprentice, the two owners, and an office administrator.

The master electrician will lease his license for 2 to 3 years to the new if he/she needs it. The owners believe 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 assets for the new owner. A few of them have learned their craft working alongside the owner - meaning they are highly skilled, fast paced and are capable of multitasking a variety of electrical jobs.

The buyer will get approximately 160K in current value assets made up of 3 vans, 2 pickup trucks, 1 trailer, 1 trencher, 1 scissor lift, small equipment, and tools. They also have approximately 30K in inventory.

Location: North of Denver Front Range which is a virtual office that has access to a conference room they use for employee meetings, rare customer meetings, and the commercial location helps with their domain name Google positioning. The owners work out of their house with a small storage area for staging jobs from.

The sales price is 945K plus inventory which is estimated to be 30K. This is only 2.35 times the 2022 earnings. 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 LLC so this will most likely be an asset sale.

Brief Overview and Deal Points:

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. They have a normal internet presence with some SEO and a website but advertising expenses are low. They have built relationships with developers, builders, contractors, business owners, and homeowners and are continuing to work current relationships and build new ones.

The owners are proud of the success and reputation, but they have decided to leave the construction industry for a different type of business and to follow other passions. 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.

Growth & Expansion

They are getting a reputation locally for electric vehicle charging experts and are starting to get an increasing amount of work for both residential installs but also install for commercial building and parking lots that want to add chargers.

Market Competition:

Electricians are in high demand North of Denver based on the quantity and size of the many commercial and residential developments that will be taking place for the next 25 years. They have started doing more service work based on the high profit margins,increased cash flow, and greater exposure to more customers. Northern Colorado lacks an electrical contractor that really stands out as a service contractor. There is potential to utilize this space.. The new owner can expand this dramatically based on both the current and anticipated future demand. They also bid and got their first big commercial job in 2022 and it went very well. They have started to bid others and just came in 2nd for a new commercial building, more bidding through their estimator, who they subcontract and work with on a per job basis. They’ve worked with this estimator for most of 2022 and will continue to use him moving foward. He provides a fast turnaround with extremely accurate take offs that can be customized to the company’s specific needs.

Location Details:

North of Denver Front Range which is a virtual office that has access to a conference room they use for employee meetings, rare customer meetings, and the commercial location helps with their domain name Google positioning. The owners work out of their house with a small storage area for staging jobs from.

Support & Training

Will stay as long as needed

Reason for Selling:

Wants to spend more time with family