Denver Electrical Contractor, Mostly Commercial, Growing Over 30%!

Contact Seller
Asking Price:
$850,000

Gross Revenue:
$4,529,437
Cash Flow:
$344,109
EBITDA:
$344,109
Inventory:
$5,000
included in asking price

FF&E:
$170,000
included in asking price

Share this business:

Business Description

Electrical Contractor comprised of 70% Commercial, 20% Residential, and 10% Service. Serving the Denver Metro area for 11 years.

2018’s earnings were 344,109 from revenues of 4,529,437. The seller is asking for 850K which is less than 2 1/2 times the earnings. This business has been growing at over 30% per year. They also have a record amount of contracted future work. The owner started the company in 2007 and has been steadily growing it ever since. To date, the company has never had a need to invest capitol or efforts into marketing. A great reputation in combination with a long-standing and recurring customer base will undoubtedly continue to serve the new owner well.

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 specialize in 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 sporadically to maintain customer and employee relations. He works an average of 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 which includes all assets debt free. 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.

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 the steady development in their market. They have a normal internet presence with some SEO and a website but advertising expenses are exceptionally low. They have long term relationships with many developers, builders, contractors, project manager, business owners, and homeowners.

Growth and Expansion: A new owner can increase advertising and take on more work. The current owner has not to aggressively grow the business due to a choice to dedicate his time to his young and growing family at home who. He believes a new owner with a passion for increasing the value of the business will do very well.
Keep in mind that the add backs taken in the adjusted earnings spre

About the Business

Location:
Centennial, Colorado
Year Established:
2008
Number of Employees:
35
Real Estate:
Leased
Building Sq. Ft.:
2,138
Rent:
$2,690.00 Per Month
Facilities:
Warehouse space very conveniently located in the Denver Tech Center less than 1 mile off of I-25. Quiet and secure locale. Ample parking for vehicles, trailers and equipment. 2,138 total square feet, approx. 50% Office, 50% Warehouse. Office area contains four offices, reception/conference room, break area, restroom. Entire Office area was updated less than 2 years ago. Warehouse is fully fitted with shelving for material storage and organization. Landlord maintains HVAC system and performs repairs as necessary at no cost to tenant. Triple net lease, current monthly rent is approximately 2,690. Rent was decreased as of 2019.
Market Outlook/
Competition:
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 the steady development in their market. They have a normal internet presence with some SEO and a website but advertising expenses are exceptionally low. They have long term relationships with many developers, builders, contractors, project manager, business owners, and homeowners.
Growth & Expansion:
Growth and Expansion: A new owner can increase advertising and take on more work. The current owner has not to aggressively grow the business due to a choice to dedicate his time to his young and growing family at home who. He believes a new owner with a passion for increasing the value of the business will do very well.
Contact the Seller

About the Sale

Reason For Selling:
Wants to spend more time with family
Training/Support:
He 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. In addition to assistance from the current owner, the new owner will have a team of loyal, trustworthy, competent and reliable employees at their side.
Seller Financing:
15%

Listing Info

ID:
1607656
Ad Detail Views:
0

Contact the Seller
Please confirm you're not a robot
Contact the Seller
Business Listed by

Jeff Chapman Eisnaugle

Company Brokers

 Show Phone Number

View My 10 Active Listings
Sponsoring Broker:

Paul Olsen
Company Brokers
License# ER.040043531


Similar Listings


Report an Issue 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. See our full Terms & Conditions.