Smart Building Energy Efficiency Made For Restaurants

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This is a great b2b software business for a person to buy and grow
Asking Price:
$1,300,000

Gross Revenue:
$1,200,000
Cash Flow:
$230,000
EBITDA:
$270,000
Inventory:
$25,000
not included in asking price

FF&E:
$25,000
included in asking price

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Business Description

Of all commercial buildings, restaurants use the highest amount of energy per square foot.
This presents a huge opportunity to leverage smart building efficiency measures to save energy.
Born from restaurant managers, this company creates energy and facility management solutions for the food and beverage industry.
Our solutions:
Reduce energy consumption.
Provide standardized controls across multiple facilities.
Improve enterprise level operational performance.
Restaurants have profit margins of 3-5%; a 20% reduction in energy usage/maintenance can increase profit by 1 percentage point (25% increase).
Owners can reduce energy costs by 10-30% with our solution.
There are high switching costs that make the company’s business defensible and customer turnover that is extremely low.
It’s a huge market that is looking for solutions.
The cloud based business has high gross margins (nearly 70%).
The business has stable recurring revenue and is growing new business.
It has relatively low CapEx and Working Capital requirements.
Financial snapshot
Revenue: $1.2M (2019 estimate)
EBITDA: 21%
Large installed base.
Extremely high customer satisfaction.
Low churn.
Contract with largest Fast Food Chain in the world and the largest US Casual Dining Chain.
TYPICAL INSTALLATION
Hardware $10,000 (66% GM) - installed by owner
Software $100
Service $500 (95% GM) - done remotely
Recurring SW revenue $650 per year
We remote commission, no flying out. Installations are performed on-site by local electricians and mechanical contractors that already service the customer.

About the Business

Year Established:
2012
Number of Employees:
5
Real Estate:
Leased
Building Sq. Ft.:
4,535
Rent:
$3,118.00 Per Month
Lease Expiration:
3/18/2020
Facilities:
A short term lease in a building
Market Outlook/
Competition:
The competition comes from more expensive systems designed for large enterprises (and not well suited for fast food restaurants) and from cheaper commercial systems (again not designed to operate well in restaurants)
Growth & Expansion:
The current owner has created a great product and business but is not an experienced sales person - they currently grow primarily when one of their existing franchise owners or chains expand. With an aggressive sales and marketing the business could grow 2-3x by adding new clients as well.
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About the Sale

Reason For Selling:
The owner wants to scale more quickly and needs sales and marketing resources
Training/Support:
We remote commission, no flying out. Installations are performed on-site by local electricians and mechanical contractors that already service the customer.

Listing Info

ID:
1435451
Ad Detail Views:
0

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Business Listed by
Lowell Ricklefs
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Source: American Community Survey (2010-2014), United States Census Bureau.

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