Best-In-Class Security and Communication Systems Designer and Contractor
Location: Mountain
Industry: Building and Const. Services > Other Services
Financials
Gross Revenue: $30,500,000
Cash Flow: $5,400,000
Cash Flow Comments: Adjusted EBITDA
Inventory: $400,000 (Included in Asking Price)
FF&E: $2,300,000 (Included in Asking Price)
Seller Financing: Will consider financing for qualified, credit-worthy buyer.
Business Summary
2007 revenues $30+ million; $5.4 million adjusted EBITDA. Rapidly-growing platform ready to leverage identified new markets and acquisitions. This well-managed Company designs a turn-key integrated system solution for commercial, industrial, and institutional projects and contractors. It engineers, fabricates, distributes, installs, and services low-voltage security systems (burglar alarms, fire alarms, access control, CCTV) and communication systems (teledata, audiovisual, intercom, mass notification, call stations). The Company also provides commercial alarm monitoring, system inspection and maintenance services.
About the Business
Year Established: 1997
Employees: 150 full time -
Facilities: Warehouse and office space total 26,000 square feet. The Company and one partner own the facilities which can be included in the sale if the Buyer so chooses.
Market Outlook and Competition: The Company is the largest low-voltage system provider in its market, with 80% of revenues derived through the Company’s repeat customer base. Seller has no direct local company competitors. There are smaller companies that can provide one or two systems but not the entire security and communications systems package offered by Seller. Also, none of these smaller companies provide infrastructure cabling and fiber optics. These companies must subcontract the work or only bid on the components they can provide. For the general contractor, this means he must deal with several low-voltage contractors rather than just one. This increases the project’s costs and the general contractor's management time. For this reason, Seller is the supplier of choice since it offers a total package with the accompanying cost savings of not requiring multiple subcontractors. The Company is well-positioned for the next level of growth. The Company has an excellent reputation and is located in a market experiencing extraordinary growth that is expected to continue for the foreseeable future. Population growth is driving the need for more industrial facilities, schools, office buildings, hospitals, malls, etc., which are the Company’s core projects. The Company installs and services residential security systems in high-rise condo projects, but there are additional opportunities for further expansion into the high-end residential market. The Company is currently increasing recurring revenues from monitoring and maintenance contracts. At the end of 2007, the Company had a $20 million backlog for 2008 and expects 2008 revenue to reach $40 million. Current owners believe $50 million or more in annual revenues are attainable in three years through organic growth alone. The Company has an excellent footprint for geographic expansion with acquisitions available to enhance this growth.
About the Sale
Management Training and Support: Seller will provide transitional training and support. Owners prefer to retain a minority position after the sale.
Reason For Selling: Company is ready for the next level of organic growth and acquisitions.
Attached Files - Attachment Disclaimer
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The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. Please review the full Disclaimer here.
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