Solar Design, Procurement, and Construction for Commercial and Residential
Over 400 current clients and $2M already in secured work!
With over 400 current clients and $2M in secured work, this company provides solar integration for residential & commercial clients and is well-established in the tri-state region of Iowa, Illinois, and Wisconsin! Based out of a 4,000 sq. ft. space in Dubuque, the team has an experienced Master Electrician and Project Manager already in place; install and electrical work is subcontracted out as needed. With over 400 installs since the company’s inception and a pipeline of $15-17M, warranties have expired, which could certainly lead to service contracts being offered and a boost in revenue. They offer a variety of service including design, procurement, construction, project financing, quality assurance, and consulting. The 2 owners currently share operations and development roles. The range in price for residential customers (50% of their client base) is $17-$25k. On the commercial side, it can range from $20k-$2M, depending on the size and scope of the project. There is a well-established reputation with some large-name commercial clients in the region, with long-standing relationships ranging from 2-7 years. The company uses top-notch Helioscope software for project design and industry-leading Energy Toolbase software for proposals.
Assets include a 2021 Chevy 2500, a 2015 Ford F150, a 2015 Chevy 1500, and a work van, totaling more than $80,000 in value. There are substantial growth opportunities for a new owner. As electrification is increasing throughout the country, customers looking to take advantage of the tax incentives and economic benefits of solar integration will only increase. Expanding the client base in the commercial and industrial space would lead to tremendous growth.
Priced at $3,450,000, a 12.5% down payment of $431,250 returns $389,995 in the first year after debt payments, which is a 90% return on investment.
Year Established: 2013
Location: Dubuque, Iowa
Service Area: Primarily Tri-State area: Iowa, Illinois, & Wisconsin
Services: Turnkey Solar Solutions: Design, Procurement, Construction, Project Financing, Quality Assurance, & Consulting
Clients: Residential (50%) & Commercial (50%)
Lease: 4,000 sq. ft.: 50% is office space, 50% is warehouse storage space at $1,400/month
Reason for Selling: Other non-compete opportunities
Personnel: 4: 2 Owners + 1 Master Electrician & 1 Project Manager; install & electrical subcontracted as needed
Seller Training Period: 6-12 months
Growth Opportunities: Expand client base in commercial & industrial space, add maintenance/service contracts
Current Owners’ Responsibilities: Sales, Operations & Development
Cash Flow Analysis
|Description of Financial Statement||Tax Return|
|Net Income Shown on Financial Statement||$803,917||$73,003||$272,932||$-121,108|
|Legal Fees||$0||$19,792||$0||$0||Reinstatement of S Corp|
|Rental Equipment||$3,758||$5,797||$1,398||$0||50% onward going|
|Seller's Cash Flow = Total Addbacks + Net Income||$831,191||$132,052||$295,226||$-107,615|
|Profit Margin||22.77 %||1.95 %||25.87 %||-6.98 %|
- Profit Margin 2020: 23%
- List Price: $3,450,000
- Cash Flow: $831,191
- A/R: $139,268
- WIP: $746,000
- Secured Work: $2M
- Pipeline: $15M-$17M
- Assets: $80,000+
- Vehicles: $80,000-- 2021 Chevy 2500 ($40k), 2015 Ford F150 ($20k), 2015 Chevy 1500 ($15k), Work Van ($5k)
- Software: HelioScope & Energy Toolbase
- Intangible: Long-term client relationships, well-known in the Tri-State Region
- Residential (50%)
- Commercial (50%)
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
This company provides a variety of turnkey solar solutions. They have around 400 installs in the marketplace right now. The range in price for residential customers is $17-$25k. On the commercial side, it can range from $20k-$2M, depending on the size and scope of the project.
- 2 Owners: Operations & Development
- 1 Master Electrician
- 1 Project Manager
- Expand client base in commercial & industrial sector
- Add maintenance/service contracts
The Firm Advisors used a cash flow valuation methodology to determine the purchase price of the business.
Cash flow is the sum of business net income plus any owner perks and any non-onward expenses. Then we prescribe a multiple based on 20 parameter which valuate the health of the business. For this valuation, we used the 2020 cash flow value making the business price much more favorable to the buyer.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
With this information, the computation is as follows:
$831,191 x 4.15 = $3,449,443
The fair market value found above positions the list price as $3,450,000.
Purchase Price: $3,450,000
|12.5%Buyer Down Payment||$431,250||Must be unborrowed funds|
|12.5%Seller Financing or Equity||$431,250||5-year term at a rate of 4.50% = a monthly loan payment of $8,040|
|75%Bank Loan||$2,587,500||10-year term at a rate of 6% = a monthly loan payment of $28,727|
- Cash Flow: $831,191
- Annual Payment: $441,196
- To Seller: $96,478
- To Bank: $344,719
- Net Profit (after expenses and loan payment): $389,995
Numbers above result in a 90.43% return on investment in the first year.
A lender is required to have a 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $3,450,000 with the terms listed above, the coverage ratio is 1.88.
*Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available
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: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2020 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2020 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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