Opportunities
Security Automation & Low Voltage Electric – 35% Recurring Maintenance
Diverse client base – schools, airports, casinos, distribution centers, corporate
Specifications
This business one of the largest electric and security automation subcontractors in the region with a diverse client base comprised of schools, airports, casinos, distribution centers, municipalities, manufacturers, and venues! 65% of their revenue is new installs in existing buildings – which turn into maintenance revenue, which accounts for 40% of sales. With over 50 current employees, the owner of this business is willing to remain part of the team for 1-2 years.
These specialty contractors focus on specialized electrical and low voltage work including automation, security, infrastructure, and industrial projects. Seven of the over fifty employees focus on administrative tasks, while the rest are union employees who work on-site. The well-rounded crews include project managers as well as supervising managers. The owners currently focus on estimations, project management and business oversight and are not in the field. Projects often include large-scale security system installation, industrial machine installation and maintenance, complete electrical installation, data center electrical work, and the installation of building automation with related controls. They focus on data/security and automation.
The $753,000 in assets includes Shop tools, furniture, fixtures, electric benders, tugger, high voltage tester, 2014 John Deer tractor, off road ATV, conduit bender a track loader, 9 Ford trucks, 6 Chevy Trucks, 2 trailers, 1 load haul and 1 GMC truck.
Priced at $6,250,000, the company has shown exceptional growth over the years and the transition to electrical focused services has benefited this company. A continued dedication to automation, data centers, and security could generate future growth. Return on investment in the first year after debt payments is 175.46%
Business Highlights
- Year Established: 2007
- Location: Kansas City, Missouri
- Service Area: Missouri and Kansas
- Services: Specialized electrical and low voltage work including automation, security, infrastructure, and industrial projects; general contracting
- Clients: Schools, airports, casinos, distribution centers, municipalities, manufacturers, venues
- Lease: 5,500 sq. ft.: Large warehouse with open and rack storage; Office: 6 Private offices, conference room, break room
- Reason for Selling: Retirement
- Employees: 50+: 7 Administrative, 43 union field crew including project managers and supervisors & union shop
- Seller Training Period: Owner is willing to remain a part of the team for 1-2 years as a minority owner or employee
- Growth Opportunities: Expand automation projects as well as data center and security work
- Current Owners’ Responsibilities: Project management, business oversight and some estimating
- Revenue Mix:40% recurring maintenance, 60% new clients/installs. New client projects turn into maintenance
Financial Highlights
- List Price: $6,250,000
- Gross Sales
- 2019: $12,283,707
- 2018: $10,653,512
- Cash Flow:
- 2020: $1,930,875 Annualized
- 2019: $1,359,600
- 2018: $1,050,306
- Assets Included in Purchase*
- Equipment: $155,000: Shop tools, furniture, fixtures, electric benders, tugger, high voltage tester, 2014 John Deer tractor, off road ATV, conduit bender and a track loader
- Vehicles: $598,000: 9 Ford trucks, 6 Chevy Trucks, 2 trailers, 1 load haul and 1 GMC truck. However, owners will keep 2018 Chevrolet and the 2019 GMC
- Secured Work: $11,500,000
- Intangible Assets: Positive reputation, relationships with large companies, understanding of specialized work
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Jan-Sept 2020 | Tax Return | Tax Return | Tax Return | Tax Return | Notes |
| 2020 | 2019 | 2018 | 2017 | 2016 | ||
| GROSS SALES | $8,660,467 | $12,283,707 | $10,653,512 | $11,051,806 | $7,372,016 | |
| Net Income Shown on Financial Statement | $992,290 | $460,080 | $543,686 | $560,203 | $560,675 | |
| ADDBACKS | ||||||
| Compensation to Owner | $222,878 | $223,392 | $334,892 | $333,392 | $297,008 | Owner 1 |
| Other unrelated Salaries | $277,232 | $714,400 | $255,360 | $294,206 | $214,608 | Owner 2 |
| 11% Tax on total W2 Salaries | $55,012 | $103,157 | $64,928 | $69,036 | $56,278 | |
| Meals & Entertainment | $5,627 | $6,224 | $6,040 | $8,721 | $4,149 | |
| Interest | $1,850 | $3,336 | $0 | $0 | $218 | |
| Charity | $1,216 | $3,611 | $0 | $0 | $0 | |
| Cell Phone | $4,050 | $5,400 | $5,400 | $5,400 | $5,400 | $450/month |
| Replacement | $-119,999 | $-160,000 | $-160,000 | $-160,000 | $-160,000 | Owner Replacement - Owner 1: -90,000; Owner 2: -70,000 |
| Owner Truck Allowance | $8,000 | $0 | $0 | $0 | $0 | |
| TOTAL ADDBACKS | $455,866 | $899,520 | $506,620 | $550,755 | $417,661 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $1,448,156 | $1,359,600 | $1,050,306 | $1,110,958 | $978,336 | |
| Profit Margin | 16.72 % | 11.07 % | 9.86 % | 10.05 % | 13.26 % |
Typical Clients
- Schools
- Airports
- Casinos
- Distribution Centers
- Municipalities
- Manufacturers
- Venues
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
- Specialized electrical and low voltage work:
- Building automation
- Security
- Infrastructure
- Industrial projects
- Fiber cabling
- Fire alarms systems
Employees
Total Employees: 50+
- 5 Administrative
- 43 union field crew:
- Project managers
- Supervisors
- Electricians (inside wiremen and data techs)
- Crew
- Owners (2)
- Note a -$100,000 replacement in cash flow
- The owners would be willing to stay for one year. They would be willing to stay longer than a year if the new owner would allow for part time work.
- Owner 1: Works on short term projects, mostly works with ongoing customers and existing companies, bidding
- Owner 2: Works on long term projects such as data centers, building automation, HVAC etc.
- A new owner does not have to be MBE certified
Growth Opportunities
- Expand automation projects
- Work to increase data center
- Build security work revenues
- Continue specialization in these areas to gain larger projects with trusted companies throughout the region.
5 Diverse Markets
- Building Automation/HVAC controls – there are two other contractors that peruse this work. We are recognized as the best (not always the cheapest).
- Power installation for industrial customers, data centers, and power for mechanical equipment (boilers, chillers, etc.)
- Data structured cabling, fiber optics, fire alarm install, sound masking
- Access Controls, card readers, cameras, software
- Government contracts – we have relationships with 5 government agencies and have an 8A contractor that we are mentoring/teaming with.
Photos: Actual Recent Jobs
Employees
Total Employees: 50+
- Administrative
- Shannon- GSA, government contracts, joint mentor
- John- data, structured cabling, bidding, project manager
- Damion- Security access, programming,
- Hannah- day to day office work, insurance, AR, AP and time sheets
- Bookkeeper- oversees Hannah, deals with IRA and credit card payments. In the office 3X a week
- 43 union field crew:
- Project managers
- Supervisors
- Electricians (inside wiremen and data techs)
- Crew
Growth Opportunities
- Expand automation projects
- Work to increase data center
- Build security work revenues
- Continue specialization in these areas to gain larger projects with trusted companies throughout the region.
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 3 year Ave Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 3 year Ave Cash Flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
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210 N 78th St. 2nd FloorOmaha, NE 68114
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