13 Yr Old Busy Comm/Res Electrical Contractor. SP only 350!

Denver, CO (Denver County)

Seller Financing Available
13 Yr Old Busy Comm/Res Electrical Contractor. SP only 350!
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Asking Price: $325,000

Cash Flow: $203,000

Gross Revenue: $854,000

EBITDA: $203,000

FF&E: $45,000

Inventory: $5,000

Established: 2005

13 Yr Old Busy Comm/Res Electrical Contractor. SP only 350!

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Business Description

Loyal Employees, Great Reputation, Steady Growth

13 Year Old Colorado 70% Residential and 30% Commercial Electrical Contractor

2018’s earnings were 203,282 from revenues of 854,493. The seller is asking for 325K which is less than 1 3/4 times the earnings. In 2017 his earnings Plus, he currently has a record amount of contracted future work with almost 450K in work in progress. He likes the work but doesn’t like being an owner. He wants out. This is priced lower than any listing that I have ever represented. It is priced well below the market.

The company provides a full range of electrical services throughout the Denver Metro area. They get plenty of kitchen remodels basements and bathrooms to fill in in between the big projects. They work on both remodels and new construction for high end homes.

The owner is not in the field doing electric work except for very small service calls once in a while. He works out of his house and orders supplies, pulls permits, coordinates inspections, and does the bidding. He has developed a very simple estimating module that can be taught to the new owner relatively quickly. The bidding process is almost entirely “negotiated” work as opposed to competitively bid work based on this companies long term relationship with most of their customers.

He has 4 full time electricians, two journeymen and two apprentices, and two part time. He has 4 full time electricians, two journeymen and two apprentices, and two part time. One employee is ready and capable to be promoted to a foreman and runs his own jobs. The buyer can use the Sellers masters license until they get their own.

The owner believes all of his employees will stay. The employees are very loyal and hard workers and will be a huge asset for the new owner.

The buyer will get approximately 55K in current value assets made up of 3 vans, 1 truck, along with both equipment/tools (and inventory. The company has a great reputation with a long-standing and recurring customer base.

He will help the new owner transition the business for as long as they would like and is confident that it will be a smooth transition. The company has the BBB A+ rating, customers, and reputation. He will sign a non compete and offer full indemnifications.

Location: Denver, CO servicing all of the West Metro Denver Area

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The sales price has been reduced from 450K to 390K and now to 325K which includes all assets debt free. This is priced well below the market. This price is only 2 times the earnings. The seller will be keeping their cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt free. This is an LLC that files as an S Corp so this can be either a stock or an asset sale.
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Brief Overview and Deal Points:

They specialize in high end electrical contracting of all types. The company has grown historically based on their reputation through a steady long term increase in referrals along with the growth of the population and steady building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on advertising. They have long term relationships with many builders, contractors, business owners, and homeowners.

Growth and Expansion: A new owner can increase advertising, work harder than the current owner, add a full time service electrician, and take on more work. He often turns down work. The owner could have done a lot more to grow the business but became disillusioned with ownership and customer relations and decided that this was not for him. He believes a new owner with a passion for owning a service industry company that is motivated not just by a salary but also by growing the value of the business will do very well. Their commercial work consists mostly of tenant finishes and service work. There would be plenty of opportunity to hire one service guy just to cover referrals they get from homeowners associations Realtors and past customers.

Keep in mind that the add backs taken in the adjusted earnings spreadsheet are traditional and don’t accurately show how much his lack of enjoying this has impacted the growth rate. There was no way to properly monetize this. The company uses QuickBooks and their financials seem in order and up to date.

The business has loyal employees. The employees are all hourly making between $30/hr and $20/hr with a $1/hr bonus at the end of each quarter. All of this helps to keep fixed costs in line with revenues. The employees are trustworthy, competent, and reliable. Most jobs that they have requires that 2 or more of their employees are on site at the same time. They tend to do medium commercial and larger residential jobs. The owner will be available to help in transition as needed either short or long term. He will offer a 5 year non compete.

The business is located in the owners house in Denver. The business has a storage unit that the employees can grab inventory, equipment, etc as needed anytime. He does not believe the new owner will need a location unless they decide to grow this business much larger.

They have a great reputation for safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.

Colorado is the best State in the country to own a business. Denver, the entire Front Range, and most of Colorado are among the fastest growing areas in the U.S. The macro story for construction and overall growth is extraordinary and has been this way for the past five decades. Even during the 2008-2011 recession, Denver fell, but it didn’t fall as hard as most of the U.S. and in the past 6 years has grown faster than almost every other major city in the U.S. Plus, people who move here never leave. Here are some recent articles supporting this. Colorado is #1 for Economic Growth in the US says US News and World Report ahead of New Hampshire and Minnesota. https://www.usnews.com/news/best-states/rankings Denver CBS4 News states Low Unemployment and great Job Growth in Colorado. http://denver.cbslocal.com/2017/02/28/colorado-economy-u-s-news-and-world-report/ The Denver Post says that the Colorado Economy is set for Continued Growth. http://www.denverpost.com/2016/12/05/colorado-economy-growth-2017/ US News and World Report states Colorado is attracting Skilled Workers that’s driving the State’s Economic Growth. https://www.usnews.com/news/best-states/articles/2017-02-28/attracting-young-skilled-workers-drives-a-states-economic-growth Denver and the Front Range have nationally recognized schools, museums, outdoor activities, theater, music, restaurants, etc.
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Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s). Thank you for your interest.

Sincerely,

Jeff Chapman Eisnaugle
Company Broker Group, LLC.
Denver, CO
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Inventory:
Included in asking price
Employees:
10
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The business is located in the owners house in Denver. The business has a storage unit that the employees can grab inventory, equipment, etc as needed anytime. He does not believe the new owner will need a location unless they decide to grow this business much larger.
Competition:
They specialize in high end electrical contracting of all types. The company has grown historically based on their reputation through a steady long term increase in referrals along with the growth of the population and steady building in their market. They have a normal internet presence with some SEO and website but do not spend a lot on advertising. They have long term relationships with many builders, contractors, business owners, and homeowners.
Growth & Expansion:
A new owner can increase advertising, work harder than the current owner, add a full time service electrician, and take on more work. He often turns down work. The owner could have done a lot more to grow the business but became disillusioned with ownership and customer relations and decided that this was not for him. He believes a new owner with a passion for owning a service industry company that is motivated not just by a salary but also by growing the value of the business will do very well. Their commercial work consists mostly of tenant finishes and service work. There would be plenty of opportunity to hire one service guy just to cover referrals they get from homeowners associations Realtors and past customers.
Financing:
up to 15%
Support & Training:
Will stay as long as needed.
Reason for Selling:
Owner wants to pursue other interests.
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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Sponsoring Broker:
Paul Olsen

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