Return To Opportunities List

Opportunities

100% Collateralized Wireless Tech & Network Engineering Company

COVID resistant & 20 years of telecommunications experience!

CASH FLOW
$1,986,249

Specifications

  • Price
    $7,250,000

  • Revenue
    $6,820,909

  • Profit Margin
    29%

  • Cash Flow
    $1,986,249

  • Location
    Locations in Washington, Texas, New Jersey, Pennsylvania, and D.C. metro

  • Service Area
    Nationwide

  • Employees
    78 W-2: 1 VP, 6 admin, 28 in the field on construction side, 40 in telecom division, 3 project managers/construction managers; subcontractors as needed

With over $8M in assets, the loan will be nearly 100% collateralized, and the owner is willing to finance or do an equity roll! This engineering company with over 20 years of telecommunications experience specializes in Wireless Technology Services, Network Roll-out, and Project Mgmt. They have been supplying professional services for some of the wireless industry’s largest companies from small to large scale projects or turnkey solutions.

Along with offering expert design, service analysis, and solutions for a wide range of technologies, they also provide site acquisition and technology consulting for wireless vendors and service providers focused on wireless networks.

Their staff is known for providing first-rate wireless engineering solutions, network design and implementation services to wireless vendors and carriers, making them a “one-stop-shop” for their customers. See company benefits below:

  • Not affected by COVID – number of projects and volumes have increased
  • The seller is a passive owner! - this wireless tech service company has 2 Senior VP’s who each manage and operate a division
  • With over $8M in assets, the loan will be nearly 100% collateralized, and the owner is willing to finance or do an equity roll.
  • Not relationship driven – more reputation driven based on quality of work and brand and experience in the market
  • Authorized Service Provider (ASP) for wireless vendor OEMs and wireless carriers
  • No dedicated salesperson; they receive enough work from clients as an approved tier one vendor (Verizon, Sprint/T-Mobile)

This company was founded in Seattle, WA in 2001 and has locations around the US. With 82 employees, they are known to deliver the highest industry standard.

As the telecommunications industry expands with every passing year, the growth opportunities are infinite for this firm. The company could expand to as much as $9M top line revenue in the next year or two; 5G expansion is going to lead to 3 to 4 years’ worth of business in both the Telecom and Mobile Divisions.

Business Highlights

  • Year Established: 2001
  • Location:  Primary location in Orange County, California; locations also in Washington, Texas, New Jersey, Pennsylvania, and D.C. metro
  • Service Area: Nationwide
  • Services: Cell site development, integration & commissioning, optimization, network maintenance, quality control
  • Clients: Wireless vendors, service providers focused on wireless networks
  • Reason for Selling: Retirement / Age
  • Personnel: 78 W-2: 1 VP, 6 admin, 28 in the field on construction side, 40 in telecom division, 3 project managers/construction managers; subcontractors as needed
  • Seller Training Period: 6 months to 1 year, assuming owner remains part-time after the initial transition
  • Growth Opportunities: 5G expansion in both Telecom and Mobile divisions, have dedicated salesperson to solely focus on sales, increase number of subcontractors, open a New Jersey office
  • Current Owner’s Responsibilities: High-level oversight only. Has no day-to-day role

Backlog Summary

  • 2020 – estimated remaining for October to December 2020 - $3,500,000
  • 2021 – estimated moved from 2020 due to COVID Pandemic - $2,000,000
  • 2021 – estimated Mobile Handset - $3,000,000

Financial Highlights

Price: $7,250,000

 

Seller Financing: Owner is willing to finance or do an equity roll.

*Loan will be nearly 100% collateralized!

  • Gross Sales:
    • 2020: $6,820,909
    • TTM:  $7,285,796
    • 2019: $6,452,919
    • 2018: $6,064,685
    • 2017: $5,533,843
  • Cash Flow:
    • 2020: $1,986,249
    • TTM:  $1,154,315
    • 2019: $1,250,103
    • 2018: $1,090,834
  • Assets Included in Purchase: $8,024,890*
    • Inventory: $207,566
    • Equipment: $6,777,636- 14 sweep testing kits, 6 fiber testing kits, 12 PIM testing kits, 11 GPS alignment tools, 7 fiber testers, 1 concrete coring machine
    • Vehicles: $1,039,088: 22 heavy duty trucks

      *amounts may vary, assets may be depreciated, replacement cost, or fair market value 


    Cash Flow Analysis

    Description of Financial StatementP&L Statement
    June 2019-May 2020 - Accrual (TTM)
    P&L Statement
    Jan-Dec
    Tax Return
    Accrual
    Tax Return
    Accrual
    Notes
    2020202020192018
    GROSS SALES$7,285,796$6,820,909$6,452,919$6,064,865
    Net Income Shown on Financial Statement$1,289,779$1,031,440$1,349,107$472,423
    ADDBACKS
    Compensation to Owner$38,450$195,000$100,000$126,413For owner & wife - no replacement needed
    Other unrelated Salaries$66,000$0$160,000$0For son - roles already being handed off
    11% Tax on total W2 Salaries$11,490$21,450$28,600$13,905
    Depreciation$310,120$360,000$154,993$116,562
    Interest$193,869$231,989$190,842$262,922
    Auto Lease / Loan$4,560$4,560$4,560$4,560Personal expense
    Auto Maintenance$8,000$8,000$8,000$8,000Personal expense
    Auto Insurance$8,000$8,000$8,000$8,000Personal expense
    Rent Overage$48,119$33,344$70,356$52,249$33k onward going
    Cell Phones$7,800$7,800$7,800$7,800Personal expense
    Consultants/Professional Fees$110,283$66,666$110,000$0Personal Expense - See CPA Notes Below
    Cancellation of Debt Income$-960,155$0$-960,155$0
    Wage$18,000$18,000$18,000$18,000Adult Child-Not Working
    TOTAL ADDBACKS$-135,464$954,809$-99,004$618,411
    Seller's Cash Flow = Total Addbacks + Net Income$1,154,315$1,986,249$1,250,103$1,090,834
    Profit Margin15.84 %29.12 %19.37 %17.98 %
    • Profit Margin: 29%

    Consultant Expense Analysis

    Services

    • Cell Site Service Offerings
      • Development
      • Integration
      • Optimization
      • Network Maintenance
      • Quality Control
    • Actively targeting the following:
      • 5G Small Cell Construction
      • 5G Fiber Infrastructure
      • Fiber to home construction 

    Personnel

    • 82 W-2 Employees
      • 2 SVP’s: each operate and fully manage their division
      • 6 project managers/construction managers
      • 40 in Telecom Division
      • 28 in the field on construction side
      • 6 administrative associates (including an Office Manager with 12-year tenure)
    • Key people are on wireless and they keep RF engineers working remote from India to reduce the cost until RF projects and demands ramp up.
    • Installers & Integration subcontracted as needed
    • No dedicated salesperson; they receive enough work from clients as an approved tier one vendor
    • Will bring in local manpower to complete work across country.
    • Design work is done by 4 power crews, the majority being engineers, and the foremen, who are always engineers.
    • Bidding committee comprised of the Operations Manager, Project Managers, Civil and Telecom Construction Manager prepare the initial bid and finalize it.
      • Once the bid is finalized, it is forwarded to the Project Manager and an SVP. They will adjust the bid for profit and make any adjustments before sending the bid to the customer.

    About the Owner

    Founded in 2001 in Seattle, WA, the owner is now 66 years old and ready to enter retirement. Owner’s compensation in this case is paid to the owner and his non-working wife – the duties performed by the owner are very high-level and they foresee that the new buyer will be able to step in with a hands-off approach to simply monitor the balance sheet. There are two competent VP’s (one over each division) and they handle everything but the biggest of big picture items.

    Growth Opportunities

    • 5G expansion in both Telecom & Mobile Divisions
    • Have dedicated salesperson to solely focus on sales
    • Increase number of subcontractors
      • Company is purchasing a 90’ man lift for all the small cells over the next 2-3 years. This will be an additional 260k/year.
    • Open a New Jersey office

    Attachments

    Document Title / Description

    This folder is empty.

    Access to this Deal Room is restricted

    Would you like to access the deal room?

    Yes, please

    Interested in
    this business?

    Complete the following information to sign an NDA and see more details!

    Already have an account? Log in here.

    Click to download NDA form

    Print, sign and send to:

    210 N 78th St. 2nd Floor
    Omaha, NE 68114

    Or fax to:

    f 402.939.0857

    Thinking of Selling?
    When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard


    The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.