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Commercial Solar Design & Installation

32% profit margin & $1.8M in upcoming work!

CASH FLOW
$2,548,004

Specifications

  • Revenue
    $8,023,688

  • Cash Flow
    $2,548,004

  • Location
    Kansas City area, Missouri

  • Service Area
    Iowa, Missouri, Kansas, Illinois

  • Profit Margin
    32%

  • Employees
    1 Project Manager &Master Electrician, 2 Electricians, 2 Business Developers, 1 Office Administrator, 1099 Contractors as needed

  • Intangible Assets
    Great reputation and referrals

  • Price
    $8,750,000

  • Down Payment
    N/A

32% profit margin & $1.8M in upcoming work! This company has grown quickly since 2011 and they have installed over 100,000 individual solar modules for Midwest customers. They have five employees, including one master electrician, two part time sales callers, and two electricians.  The current owner is willing to carry 12.5% of the note, along with holding 12.5% in equity as well.

 

This company currently focuses Developing Solar PV projects.  The projects undertaken by this company are from inside sales and referrals.  Projects have a 20% - 45% margin, making this a great revenue generating business. While they currently focus their efforts on commercial projects, there is room to expand into the agricultural and residential markets.  

 

Projects vary in size from as small as $25,000 and can exceed upwards of $1.5 million. Longstanding relationships with distributors and subcontractors, help show that this business has been providing quality work in the solar industry. Minimal competition in the service area and immediate energy savings for customers make this an easy sell. This business is ready for a new owner to take it to new heights.

 

Business Highlights

  • Year Established:   2011
  • Location: Kansas City area, Missouri
  • Service Area:   Iowa, Missouri, Kansas, Illinois
  • Average Jobs Last Year:   22
  • Lease:   1 Office and Warehouse
  • Reason for Selling:   Industry consolidation
  • Employees:   1 Project Manager & Master Electrician, 2 Electricians, 2 Business Developers, 1 Office Administrator, 1099 Contractors as needed
  • Hours:   8:00-5:00 Monday-Friday
  • Seller Training Period:    1-3 years and will roll equity and continue to run the business
  • Growth Opportunities: Increase direct sales, increase service area, in-house financing, residential installation
  • Current Owner’s Responsibilities:   Sales, Some Project Management, Financial Management of projects

Financial Highlights

  • List Price: $8,750,000
  • Gross Sales:
    • 2019: $8,023,688
  • Cash Flow:
    • 2019: $2,548,004
  • Total Assets Included in Purchase: $2,550,037
    • Intangible Assets:   Great reputation and referrals
    • Vehicles:   $210,236
    • Upcoming Work:   $1,800,000
    • Accounts receivable: $207,726

*amounts may vary

Clients and Services

The direct customers are mostly business owners who are looking to take advantage of the tax credits and incentives available to save on operating costs such as utility expenses and taxes. This company has done work throughout the country and have a strong reputation for completing projects on time and at a fair cost.

Benefits to all areas include lower monthly utility bills, increasing property value, tax credits and depreciation, hedging exposure to rising electricity costs.

Employees

  • Project Manager – Master Electrician – FT
    • Installation
    • Manages on-site crews
    • Service
    • Sales
  • 2 Electricians – FT
    • Installation
    • Service
  • Two Inside Sales Callers – FT
    • Acquiring new business
    • Potential to make proposals
  • One Office Administrator/Project Coordinator
    • Coordinates Paperwork, permitting and utility interconnection process.
  • 1099 contractors
    •   Hired as needed per project for installation

Growth Opportunities

  • Increase Sales
    • Increase inside sales
    • Increase subcontracted sales

       

  • Expand Markets
    • Residential
    • Agricultural

       

  • Expand Offerings
    • LED Lighting
    • Electrical work (Battery or car charging Installations)
    • Other Energy Efficiency or renewable technologies
  • Increase Service Area
    • Several nearby states not currently included in sales area
    • Would need to ensure you have licenses in states where you would like to operate

       

  • Increase Service Contracts
    • Currently no service contracts

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, the 2-year avg Cash Flow was used with a prescribed multiple of 4.5.  With this information, the computation is as follows:

$1,915,656      x          4.5       =          $8,620,452

The Fair Market Value found above positions the business List Price at $8,750,000

 

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

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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.