Opportunities
IT and Low Voltage Contractor Serving Government & Commercial Markets
Great work-life balance- current owner lives out-of-country part time!
Specifications
The company specializes in installing surveillance systems for commercial clients, which include multi-building apartment complexes, HOA’s, hotels, strip malls, restaurants, hospitals, and municipalities. The services offered include low voltage cable installations, IT support, and system maintenance. This surveillance system installation company is based in the San Francisco Bay Area. The team consists of six full-time employees, including an operations Manager, two low voltage cable installers, two IT staff members, and one Bookkeeper/Admin. The company also works with two crews of independent contractors to handle larger projects or peak demand periods. The seller oversees the company’s operations and is responsible for strategic planning and decision-making. However, he lives out of the country for four months out of the year. In his absence, the Operations Manager handles day-to-day tasks and ensures that the business continues to run smoothly. This business operates out of a 500 sq. ft. office space, which helps keep overhead costs low. The reason for sale is to plan for retirement and in order to ensure a smooth transition for the new owner, the seller is willing to provide training for up to 1-2 years after the sale.
Priced at $975,000, a 10% down payment can return $190,233 in the first year after debt payments. There are several growth opportunities that can be pursued by the new owner. These include expanding into temperature scanning camera installations and video monitoring services as well as exploring vertical markets like fire alarm installation and smart home systems integration. Additionally, there is potential for expanding into government and municipal contracts to further increase revenue streams. By capitalizing on these opportunities, the new owner can build upon the existing foundation and drive continued growth for the business. Catering to commercial businesses in the San Francisco Bay Area, the company has built a reputation for providing reliable and efficient surveillance system installation services to various industries, including property management, hospitality, healthcare, and retail. With a focus on the commercial sector.
Business Highlights
- Year Established: 2008
- Location: San Francisco Bay Area, California
- Service Area: San Francisco Bay Area (80%), Regional (15%) and National (5%)
- Services: Installation of surveillance systems
- Clients: Primarily commercial: apartment complexes, HOA’s, hotels, strip malls, restaurants, hospitals, etc.
- Building: 500 sq. ft. office space – low overhead
- Reason for Selling: Semi-retiring – lives out of the country part-time
- Personnel: 5FT: 1 Owner, 1 Operations Manager, 2 cable installers, 1 IT staff + 1 PT bookkeeper
- Seller Training Period: 6-12 months
- Growth Opportunities: Increase installation of temperature scanning cameras and video monitoring, expand to vertical markets (fire alarm installation, smart home systems, etc.), add government & municipal contracts
- Current Owner’s Responsibilities: Oversight; lives out of the country 4 months out of the year
Cash Flow Analysis
| Description of Financial Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Tax Return | Notes |
| 2021 | 2020 | 2019 | 2018 | 2017 | ||
| GROSS SALES | $305,877 | $337,635 | $564,886 | $423,204 | $429,302 | |
| Net Income Shown on Financial Statement | $-72,604 | $-19,758 | $38,793 | $20,823 | $11,127 | |
| ADDBACKS | ||||||
| Compensation to Owner | $75,000 | $60,000 | $60,000 | $60,000 | $60,000 | Business can run without a replacement |
| 11% Tax on total W2 Salaries | $4,773 | $6,600 | $6,600 | $6,600 | $6,600 | |
| Depreciation | $0 | $12,292 | $20,591 | $3,108 | $4,862 | |
| Interest | $1,314 | $1,974 | $890 | $92 | $3,274 | |
| Dues/Subscriptions | $95 | $120 | $120 | $120 | $2,400 | $200/month for gym membership |
| Cell Phone | $2,400 | $2,400 | $3,267 | $3,208 | $2,631 | $200/month |
| Meals & Entertainment | $667 | $100 | $486 | $151 | $257 | |
| Auto Expense | $11,177 | $7,183 | $12,928 | $12,182 | $11,293 | 50% personal $6,050 Tesla lease, fuel for the Subaru (paid off), Auto Insurance |
| Health Insurance | $4,638 | $0 | $3,924 | $3,889 | $3,938 | |
| Simple IRA | $0 | $0 | $15,000 | $0 | $0 | |
| Miscellaneous | $0 | $0 | $20,000 | $1,096 | $20,000 | Money paid to self |
| Home Remodel | $0 | $0 | $0 | $20,000 | $0 | In COGS - one-time expense |
| Travel | $3,400 | $1,767 | $2,395 | $841 | $867 | |
| Personal Coaching | $475 | $4,098 | $0 | $0 | $0 | |
| Fees for Sale Prep | $8,125 | $0 | $0 | $0 | $0 | |
| TOTAL ADDBACKS | $112,064 | $96,534 | $146,201 | $111,287 | $116,122 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $39,460 | $76,776 | $184,994 | $132,110 | $127,249 | |
| Profit Margin | 12.90 % | 22.74 % | 32.75 % | 31.22 % | 29.64 % |
Personnel
- 1 Owner
- Oversight*
- 1 Operations Manager/Estimator
- 1 full-time IT Technician
- 2 Cable Installers
- 1 PT Bookkeeper
- Subcontractors as needed
*This company is being set to run remotely. The owner currently has little-to-no customer contact. His Operations Manager writes bids which he will look over only if required.
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: 2023 Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2023 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
| Document Title / Description |
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210 N 78th St. 2nd FloorOmaha, NE 68114
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