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Turnkey Solar Solutions--$15M+ in Pipeline

With over $3M in sales!

CASH FLOW
$831,191

Specifications

  • Price
    $2,900,000

  • Revenue
    $3,650,060

  • Cash Flow
    $831,191

  • Profit Margin
    23%

  • Location
    Dubuque, Iowa

  • Service Area
    Primarily Tri-State area: Iowa, Illinois, & Wisconsin

  • Intangible Assets
    Long-term client relationships, well-known in the Tri-State Region

  • Equipment
    $80,000

Witha pipeline of $15-17M, this turnkey solar solutions company has over $3M in sales andover 400 current clients in Iowa, Illinois, and Wisconsin ! Providing solar integration for residential & commercial clients, the business is well-established in the region. 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, warranties have expired, which could certainly lead to service contracts being offered and a boost in revenue. They offer a variety of services 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 $2,900,000, a 12.5% down payment of $362,500 returns $460,330 in the first year after debt payments, which is a 127% return on investment.

Business Highlights

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 StatementTax Return
Cash
Tax Return
Cash
Tax Return
Cash
Tax Return
Cash
Notes
2020201920182017
GROSS SALES$3,650,060$6,764,265$1,141,194$1,541,242
Net Income Shown on Financial Statement$803,917$73,003$272,932$-121,108
ADDBACKS
Depreciation$13,255$4,413$0$0
Interest$-285$15,510$6,607$391
Dues$1,862$1,683$2,619$1,63550% personal
Cell Phone$0$1,109$2,868$2,278
Legal Fees$0$19,792$0$0Reinstatement of S Corp
Rental Equipment$3,758$5,797$1,398$050% onward going
Rent$7,000$7,000$7,000$7,000
Meals$1,684$3,745$1,802$189
Donations$0$0$0$2,000
TOTAL ADDBACKS$27,274$59,049$22,294$13,493
Seller's Cash Flow = Total Addbacks + Net Income$831,191$132,052$295,226$-107,615
Profit Margin22.77 %1.95 %25.87 %-6.98 %
  • Profit Margin 2020: 23%

Financial Highlights

  • List Price: $2,900,000

 

  • 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

Clients

  • Residential (50%)
  • Commercial (50%)

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

Services

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. 

Personnel

  • 2 Owners: Operations & Development
  • 1 Master Electrician
  • 1 Project Manager

Growth Opportunities

  • Expand client base in commercial & industrial sector
  • Add maintenance/service contracts

Valuation

Funding Example

Purchase Price:

$2,900,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

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:
2020 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 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: %

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210 N 78th St. 2nd Floor
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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.