Return To Opportunities List

Opportunities

Solar Panel Install for Agriculture & Commercial Markets

Well-known throughout the Midwest since 1977!

CASH FLOW
$1,204,186

Specifications

  • Price
    $6,500,000

  • Revenue
    $9,493,385

  • Cash Flow
    $1,204,186

  • Location
    Southeast Iowa

  • Service Area
    Throughout the Midwest

  • Intangible Assets
    Well-known in the industry, sought out by solar developers, solid team in place

This Southeast Iowa company has been well-known throughout the Midwest region since 1977! Specializing in solar installation, sign installation, and electrical construction for farmers, commercial & residential clients, and the industrial sector, the business has $3M worth of secured work to take them through the rest of 2020 and into 2021. The exceptionally highly skilled team includes 2 owners, one of which is an Electrical Engineer – the other is a Master Electrician and superintendent, along with a CFO, 1 accountant, 4 solar crew leaders, 6 electrical crew leaders, 2 sign installers, 1 FT mechanic, 2 assistant project managers, 2 solar sales reps, and 15-20 electrical apprentices to assist as needed. Their facilities are comprised of a 2,000 sq. ft. office/crew space, a 2,400 sq. ft. mechanic shop, 9,000 sq. ft. trailer parking space, and a combined total of 34,200 sq. ft. in equipment/material storage and truck parking.

 

The business has a considerable amount of assets, including several cube vans, trucks, trailers, generators, electric benders, welders, trenchers, backhoes, and an extensive amount of other equipment and tools.  They use Foundation, which is a construction specific software designed for remote use, as well as PVsyst and Helioscope for solar design, and ConEst for estimating services.

 

With a solid team and an outstanding reputation in place, this company’s services are sought out by solar developers in the region. Substantial growth opportunities are on the horizon, as important strategic partnerships are developing, and the solar industry is soaring.

Business Highlights

  • Year Established: 1977
  • Location:  Southeast Iowa
  • Service Area:  Throughout the Midwest
  • Services: Solar panel installation, sign installation, electrical work
  • Clients: Solar developers, farmers, commercial/residential, industrial
  • Certifications: NABCAP Certified Master Electricians
  • Facilities: 2,000 sq. ft. office/crew area, 34,200 sq. ft. equipment/material storage & truck parking, 2,400 sq. ft. mechanic shop, 9,000 sq. ft. trailer parking
  • Reason for Selling: New opportunities
  • Personnel: 30-40: 2 owners, 1 CFO, 1 accountant, 4 solar crew leaders + 8-15 installers/apprentices as needed, 6 electrical crew leaders + 4 electrical apprentices, 2 Assistant Project Managers, 2 solar sales reps, 2 sign installers, 1 mechanic
  • Seller Training Period: 6-12 months
  • Growth Opportunities: Develop more partnerships with solar developers, complete Tesla Solar Roof certification
  • Current Owner’s Responsibilities: General management & oversight

Financial Highlights

  • List Price: $6,500,000
  • Gross Sales:
    • 2019: $9,493,385
    • 2018: $6,886,469
  • Cash Flow:
    • 2020: $1,204,186 Annualized
    • 2019: $1,286,723
    • 2018: $1,092,316
  • Replacement Cost of Asset*:
  • Automobile/ Trans. Equipment: $2,173,586
  • Furniture & Fixtures: $114,997
  • Machinery & Equipment: $1,450,647
  • Secured Work: $3M in signed contracts for 2020/2021
  • Intangible Assets: Well-known in the industry, sought out by solar developers, solid team in place

*amounts may vary, assets may be depreciated, replacement cost, or fair market value 

Cash Flow Analysis

Description of Financial StatementP&L Statement
January-June 2020
Tax ReturnTax ReturnP&L StatementNotes
2020201920182017
GROSS SALES$2,495,956$9,493,385$6,866,469$7,004,070
Net Income Shown on Financial Statement$368,973$237,522$276,880$1,519,517
ADDBACKS
Compensation to Owner$126,919$273,127$240,191$248,198
11% Tax on total W2 Salaries$13,961$30,044$26,421$27,302
Depreciation$85,008$419,840$250,892$42,755
Interest$19,006$95,556$83,701$35,926
Contributions/Donations$175$0$0$5,087
Simple IRA$0$50,000$50,000$50,000
Auto Expense$37,500$75,000$75,000$75,000
Dues$2,500$5,000$5,000$5,000
Insurance$19,915$80,000$80,000$80,000
Travel$1,099$120,000$120,000$120,000
Cell Phone$4,500$7,000$7,000$7,000
Education$0$5,000$5,000$5,000
Meals & Entertainment$964$20,000$20,000$20,000
Replacement$-40,000$-80,000$-80,000$-80,000Master Electrician
Replacement$-45,000$-90,000$-90,000$-90,000Master Electrician
Rent$6,573$38,643$22,231$-8,750$80k/year onward going
Bad Debt$0$0$0$4,389
TOTAL ADDBACKS$233,120$1,049,210$815,436$546,907
Seller's Cash Flow = Total Addbacks + Net Income$602,093$1,286,732$1,092,316$2,066,424
Profit Margin24.12 %13.55 %15.91 %29.50 %
  • Profit Margin 2019: 14%

Clients

  • Solar Developers
  • Farmers
  • Commercial/Residential
  • Industrial

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Solar panel installation
  • Sign installation
  • Electrical work

Personnel

  • 2 Owners
    • Owner 1: Electrical Engineer – general management/oversight
    • Owner 2: Master Electrician/Superintendent – sales & project support
  • 1 CFO
  • 1 Accountant
  • 4 Solar Crew Leaders
  • 6 Electrical Crew Leaders
  • 2 Sign Installers
  • 1 Mechanic
  • 2 Assistant Project Managers
  • 2 Solar Sales Reps
  • 15-20 Electrical Apprentices to assist projects as needed

Growth Opportunities

  • Develop more partnerships with solar developers
  • Strategic Casey’s General Stores relationship
  • Tesla strategic relationship; Solar Roof has tremendous potential

Valuation Details

The Firm 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 prescribed multiple is determined 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 multiplier.

For this business, the 2019 Cash Flow was used with a prescribed multiple of 5.  With this information, the computation is as follows:

$1,286,723    x            5          =          $6,433,615

The fair market value found above positions the business list price at $6,500,000.

Funding Example

Purchase Price:                             $6,500,000

10%Buyer Down Payment:             $650,000

5% Seller Promissory Note or 15% Equity Roll

70%Bank Loan:                             $4,550,000

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. 

*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.

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

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

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard


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.