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Opportunities

Wireless Tech Service for Cell Site Towers

Over $8M in assets – loan will be nearly 100% collateralized!

CASH FLOW
$1,154,315

Specifications

  • Price
    $6,700,000

  • Revenue
    $7,285,796

  • Cash Flow
    $1,154,315

  • Location
    Primary location in Orange County, California; locations also in Washington, Texas, New Jersey, Pennsylvania, and D.C. metro

  • Service Area
    Nationwide

  • Employees
    78 W-2: 1 VP, 6 admin, 28 in the field on construction side, 40 in telecom division, 3 project managers/construction managers; subcontractors as needed

With over $8M in assets, the loan will be nearly 100% collateralized, and the owner is willing to finance or do an equity roll! Specializing in cell site development, integration and commissioning, optimization, network maintenance, and quality control, this company has 20 years of industry experience. Primarily located in Orange County, California, they also have locations in Seattle Metro, Dallas Metro, Washington, Texas, New Jersey, Philadelphia, and the D.C. metro area. Their highly skilled and knowledgeable team of 78 employees provides services ranging from short-term assignments to full-scale long-term projects. Included on the staff are 3 project managers/construction managers, 40 employees in the Telecom Division, 25-28 in the field on the construction side, and 6 administrative associates. Along with offering expert design, service analysis, and solutions for a wide range of technologies, they also provide site acquisition, technology consulting, and several services for wireless vendors and service providers focused on wireless networks.

Assets include 14 sweep testing kits, 6 fiber testing kits, 12 PIM testing kits, 11 GPS alignment tools, 7 fiber testers, 1 concrete coring machine, and 22 heavy duty trucks. The wireless industry’s largest world-class companies look to this company for their professional services, including wireless technology services, network roll-out, and project management. Their staff is known for providing first-rate wireless engineering solutions, network design and implementation services to wireless vendors and carriers, making them a “one-stop-shop” for their customers.

As the telecommunications industry expands with every passing year, the growth opportunities are infinite for this firm. The company could expand to as much as $9M top line revenue in the next year or two; 5G expansion is going to lead to 3 to 4 years’ worth of business in both the Telecom and Mobile Divisions. In addition, the company is purchasing a 90’ man lift for all small cells over the next 2-3 years; this will lead to an additional $260k per year.

Business Highlights

  • Year Established: 2001
  • Location:  Primary location in Orange County, California; locations also in Washington, Texas, New Jersey, Pennsylvania, and D.C. metro
  • Service Area: Nationwide
  • Services: Cell site development, integration & commissioning, optimization, network maintenance, quality control
  • Clients: Wireless vendors, service providers focused on wireless networks
  • Reason for Selling: Retirement / Age
  • Personnel: 78 W-2: 1 VP, 6 admin, 28 in the field on construction side, 40 in telecom division, 3 project managers/construction managers; subcontractors as needed
  • Seller Training Period: 6 months to 1 year, assuming owner remains part-time after the initial transition
  • Growth Opportunities: 5G expansion in both Telecom and Mobile divisions, have dedicated salesperson to solely focus on sales, increase number of subcontractors, open a New Jersey office
  • Current Owner’s Responsibilities: High-level oversight only. Has no day-to-day role

Backlog Summary

  • 2020 – estimated remaining for October to December 2020 - $3,500,000
  • 2021 – estimated moved from 2020 due to COVID Pandemic - $2,000,000
  • 2021 – estimated Mobile Handset - $3,000,000

Financial Highlights

Price: $6,700,000

 

Seller Financing: Owner is willing to finance or do an equity roll.

*Loan will be nearly 100% collateralized!

  • Gross Sales:
    • TTM:  $7,285,796
    • 2019: $6,452,919
    • 2018: $6,064,685
    • 2017: $5,533,843
  • Cash Flow:
    • TTM:  $1,154,315
    • 2019: $1,250,103
    • 2018: $1,090,834
  • Assets Included in Purchase: $8,024,890*
    • Inventory: $207,566
  • Equipment: $6,777,636- 14 sweep testing kits, 6 fiber testing kits, 12 PIM testing kits, 11 GPS alignment tools, 7 fiber testers, 1 concrete coring machine
      • Vehicles: $1,039,088: 22 heavy duty trucks
      • *amounts may vary, assets may be depreciated, replacement cost, or fair market value 


      Cash Flow Analysis

      Description of Financial StatementP&L Statement
      June 2019-May 2020 - Accrual
      Tax Return
      Accrual
      Tax Return
      Accrual
      Notes
      202020192018
      GROSS SALES$7,285,796$6,452,919$6,064,865
      Net Income Shown on Financial Statement$1,289,779$1,349,107$472,423
      ADDBACKS
      Compensation to Owner$38,450$100,000$126,413For owner & wife - no replacement needed
      Other unrelated Salaries$66,000$160,000$0For son - roles already being handed off
      11% Tax on total W2 Salaries$11,490$28,600$31,905
      Depreciation$310,120$154,993$116,562
      Interest$193,869$190,842$262,922
      Auto Lease / Loan$4,560$4,560$4,560Personal expense
      Auto Maintenance$8,000$8,000$8,000Personal expense
      Auto Insurance$8,000$8,000$8,000Personal expense
      Rent Overage$48,119$70,356$52,249$33k onward going
      Cell Phones$7,800$7,800$7,800Personal expense
      Consultants/Professional Fees$110,283$110,000$0Personal Expense - See CPA Notes Below
      Overstated Income 2014-2015$0$0$0One-time adjustment
      Deferred AR Previous Years$0$0$0One-time adjustment
      Cancellation of Debt Income$-960,155$-960,155$0
      Wage$18,000$18,000$18,000Adult Child-Not Working
      TOTAL ADDBACKS$-135,464$-99,004$636,411
      Seller's Cash Flow = Total Addbacks + Net Income$1,154,315$1,250,103$1,108,834
      Profit Margin15.84 %19.37 %18.28 %
      • Profit Margin: 16%

      Consultant Expense Analysis

      Services

      • Cell Site Service Offerings
        • Development
        • Integration
        • Optimization
        • Network Maintenance
        • Quality Control
      • Actively targeting the following:
        • 5G Small Cell Construction
        • 5G Fiber Infrastructure
        • Fiber to home construction 

      Personnel

      • 82 W-2 Employees
        • 2 SVP’s: each operate and fully manage their division
        • 6 project managers/construction managers
        • 40 in Telecom Division
        • 28 in the field on construction side
        • 6 administrative associates (including an Office Manager with 12-year tenure)
      • Key people are on wireless and they keep RF engineers working remote from India to reduce the cost until RF projects and demands ramp up.
      • Installers & Integration subcontracted as needed
      • No dedicated salesperson; they receive enough work from clients as an approved tier one vendor
      • Will bring in local manpower to complete work across country.
      • Design work is done by 4 power crews, the majority being engineers, and the foremen, who are always engineers.
      • Bidding committee comprised of the Operations Manager, Project Managers, Civil and Telecom Construction Manager prepare the initial bid and finalize it.
        • Once the bid is finalized, it is forwarded to the Project Manager and an SVP. They will adjust the bid for profit and make any adjustments before sending the bid to the customer.

      About the Owner

      Founded in 2001 in Seattle, WA, the owner is now 66 years old and ready to enter retirement. Owner’s compensation in this case is paid to the owner and his non-working wife – the duties performed by the owner are very high-level and they foresee that the new buyer will be able to step in with a hands-off approach to simply monitor the balance sheet. There are two competent VP’s (one over each division) and they handle everything but the biggest of big picture items.

      Growth Opportunities

      • 5G expansion in both Telecom & Mobile Divisions
      • Have dedicated salesperson to solely focus on sales
      • Increase number of subcontractors
        • Company is purchasing a 90’ man lift for all the small cells over the next 2-3 years. This will be an additional 260k/year.
      • Open a New Jersey office

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

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