Electrical, HVAC, Security, & Traffic Signals Design & Installation
With an 80% recurring client base & a versatile team of employees!
With an 80% recurring client base, this multi-service business has an incredibly versatile team of employees in place! Self-performing 90% of their work, this company has an average WIP worth $2M. They offer complete mechanical, electrical, and automation design, installation, and maintenance, as well as steel erection, concrete foundations, design build, and heavy equipment installation. The team of employees is incredibly versatile, with the ability to transition from trade to trade very easily. Less than 20% of business is new construction and they have 25+ recurring clients that span different industries. They have existing government contracts with the city and department of transportation. The company started performing more mechanical services a few years ago, resulting in higher net income and profit margins. As they continue to do more on the mechanical side in the coming years, a new owner can expect to see profit margins and net income continue to increase, as profit margins from mechanical work is 35%, compared to 15% from general contracting services.
Located near Charleston, South Carolina, the company operates from a two-acre property including four buildings. They are well-known all over the Carolinas. Work is typically steady throughout the year and most projects are completed within a 100-mile radius of the office.
Priced at $5,950,000, this is a business that is in a position to grow in the construction industry. There is tremendous room for expansion into the mechanical side, which currently accounts for only 9% of the business, but has a higher profit margin than the other services they provide. A 12.5% down payment of $743,750 returns $711,843 in the first year after debt payments – a 96% return on investment.
Year Established: 2005
Location: Charleston, South Carolina
Service Area: Within 100-mile radius
Number of Clients: 25+ active recurring clients
Services: General contracting services (50%) – Structural and Steel Erection, Traffic Signals; Electrical (41%) – Security; Mechanical (9%) – HVAC
Building: Four buildings on two acres includes offices, meeting rooms, warehouse, shop and storage space
Lease: $3,000 per month – low overhead
Reason for Selling: Industry Consolidation
Employees: 14-24 field & office employees
Seller Training Period: 2 years; willing to stay on as President or GM
Growth Opportunities: Expansion into structural and steel erection projectsCurrent Owner’s Responsibilities: Oversees office roles - team is fully capable of running without owner
- List Price: $5,950,000
- 2020 Cash Flow $1,215,987
- 2019 Cash Flow: $1,729,506
- A/R: $400,000
- A/P: $200,000
- Work in Progress: Average $2,000,000
- Backlog: $2,00,000
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$1,251,892||$1,760,804||$1,888,366||$448,536|
|Meals & Entertainment||$3,540||$4,526||$5,121||$7,631|
|Compensation to Owner||$78,000||$78,000||$57,000||$42,000|
|Rent||$-16,800||$-16,800||$-14,700||$-14,700||$42k/year onward going|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,215,987||$1,729,506||$1,845,700||$397,836|
|Profit Margin||25.56 %||31.57 %||42.10 %||11.14 %|
- 2020 numbers down slightly due to COVID.
- 3-year average profit margin: 33%
- Design Build
- Concrete foundations
- Steel Erection
- Electrical design, installation and maintenance
- Automation design, installation and maintenance
- Fiber Optics design, installation and maintenance
- Mechanical design, installation and maintenance
- Heavy equipment installation
- HVAC design, installation and maintenance
Assets Included in the Purchase
- Assets Included in Purchase: $1,130,000
- Heavy Equipment: $126,500 (6) forklift, excavator, scissor lift, etc.
- Vehicles: $808,720 (22) trucks, digger, crane, etc.
- Trailers: $101,350 (16)
- Included Working Capital: $200,000
- Intangibles: Stellar reputation the Carolinas with 25+ recurring clients
*See additional asset information in the attachments
Growth opportunities include pursuing more projects in the mechanical side and especially general contracting, structural and steel erection, which currently accounts for only 9% of the business. There are also opportunities to scale business through marketing and advertising as less than 20% of their current business is new work.
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: $
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Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
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Buyer's Net Operating Income (NOI)
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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