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Installation & Servicing of Communication & Security Systems

Seller is willing to take a $200K discount on the Fair Market Value to get the asking price of $810K!

CASH FLOW
$329,635

Specifications

  • Price
    $810,000

  • Revenue
    $785,031

  • Cash Flow
    $329,635

  • Location
    Oakland, CA

  • Profit Margin
    36%

  • Employees
    4 FT (2 FT in Office—1 Bookkeeping and Human Resources | 1 Programming for System Installation) (2 FT in Field doing Servicing and Installation work)

 

The seller is willing to take a $200K discount on the Fair Market Value of the business to get to the asking price of $810K! This Bay Area communications servicing and installation company is well equipped for future growth and success! Operations by this company are split into two areas with an emphasis on the first: servicing existing systems with clients, and installation of new systems when needed. Servicing existing systems includes fixing security systems in a building (such as card access or push-button points) and fixing internal phone lines. Installation of newer communications systems comes with contracts for new office or residential spaces. Service jobs are typically charged at a fair hourly rate (around $150/hr) while new installations are given a fixed price prior to the work. Bids for installation jobs are made for work one month out or less with a quick turnaround time. Servicing and installation jobs take no more than five days to complete.

 

There are 4 FT employees with 2 working in-office (1 Bookkeeping and HR | 1 Programmer for System Installation) and 2 in the field working on the servicing and installation jobs. The current owner is involved in the day-to-day management of operations and views key areas of growth such as expanding operations (such as building additional office space) into major cities such as Sacramento and expanding the overall provided services to match new building security trends (including the video market for security cameras, and installation of Ring-type doorbell cameras) and focusing on installing Internet systems for clients.

 

With a listing price of $810,000, this business provides an extremely consistent flow of work with plenty of time for a transition period. Along with an immense client list and numerous opportunities for growth, this business is not one to pass up!

 

Business Highlights

Year Established: 1986

Location: Oakland, California

Service Area: Bay Area and surrounding region (including San Jose)

Services: Servicing and fixing current communication and security systems (card access for doors, internal phone systems) and installation of new systems when needed

Clients: Office and Residential building spaces that require service maintenance of current communication/security systems or in need of new systems

Lease: 1,500 sq ft--$3,000/month and option to renew for 5 additional years

Reason for Selling: Retirement

Personnel: 4 FT (2 FT in Office—1 Bookkeeping and Human Resources | 1 Programming for System Installation) (2 FT in Field doing Servicing and Installation work)

Growth Opportunities: Expanding operations further to inland major cities (Sacramento) and expanding provided services (including Internet systems installations)

    Current Owners’ Responsibilities: Day-to-day management of operations 

Financial Highlights

  • List Price: $810,000

 

  • Ø  2021 Cash Flow: $272,020

    Ø  2020 Cash Flow: $259,687

    Ø  2019 Cash Flow: $457,198


Cash Flow Analysis

Description of Financial StatementTax ReturnTax ReturnTax ReturnNotes
202020192018
GROSS SALES$815,257$1,137,262$832,902
Net Income Shown on Financial Statement$296,016$505,331$334,616
ADDBACKS
Personal Fuel/Vehicle$1,400$1,400$1,400
Depreciation$18,639$5,737$2,372
Owner's Insurance$5,000$5,000$5,000
Interest$0$12$558
Meals & Entertainment$3,632$4,718$3,964
Owner Replacement$-65,000$-65,000$-65,000
TOTAL ADDBACKS$-36,329$-48,133$-51,706
Seller's Cash Flow = Total Addbacks + Net Income$259,687$457,198$282,910
Profit Margin31.85 %40.20 %33.97 %
Cash Flow Analysis

Valuation

Funding Example

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

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