Denver Electrical Contractor, UP in Earn UP in Rev, Growing Over 30%!

Centennial, CO (Arapahoe County)

Seller Financing Available
Denver Electrical Contractor, UP in Earn UP in Rev, Growing Over 30%!
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Asking Price: $850,000

Cash Flow: $356,000

Gross Revenue: $4,700,000

EBITDA: $356,000

FF&E: $170,000

Inventory: $5,000

Rent: $2,690 /Month

Established: 2008

Denver Electrical Contractor, UP in Earn UP in Rev, Growing Over 30%!

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Business Description

Full Range Electrical Services throughout Denver Metro Area

Electrical Contractor comprised of 70% Commercial, 20% Residential, and 10% Service. Serving the Denver Metro area for 11 years.

The trailing 12 month earnings through July 31, 2019 were 356K from revenues 4.7M in revenue. 2018’s earnings were 344K from revenues of 4.4M. This business has been growing at over 30% per year until this year when he decided to sell because he doesn’t think he is good a running a big company. 2019 is up over 2018 both on the top and bottom lines and they do currently have a record amount of contracted future work. The owner started the company in 2007 and has a customer list that has building ever since. To date, the company has never had a need to invest capitol or efforts into marketing, even in its largest growth years. A great reputation in combination with a long-standing and recurring customer base will undoubtedly continue to provide the revenue necessary to thrive.

The company provides a full range of electrical services throughout the Denver Metro area. They work on both new construction and remodels of all types and sizes. The majority of their projects are between 100K and 400K in contract value. They are specialists in a few niche markets including Swimming Pools wherein they have the two largest Pool builders using them exclusively. Other project types include hotels, restaurants, retail stores, custom and semi-custom homes, multifamily housing, etc. 50% of their revenues are recurring from long term customers which is invaluable in this industry.

The owner is not in the field doing electrical work except when job site visits may be necessary to upkeep customer and employee relations. He works approximately 45 hours a week. The company employs a project manager who oversees the majority of the company's projects from start-up through close-out. There are two superintendents on staff who oversee the work in progress, one of whom holds a masters electrical license. They utilize a very simple industry standard estimating program that has been perfected and managed by the on staff estimator and can also be taught to the new owner relatively quickly. The company has 35 employees including 30 full time electricians, a project manager, two superintendents, a warehouse manager, an estimator, and an office manager. The company has more than one master’s license which a buyer can utilize. In 2017 the company employed an unsuccessful estimator, resulting in significant losses that year. In July of 2017 the individual was replaced with a seasoned estimator who has proven to be efficient, organized, and extremely successful at estimating and contract negotiation. The owner believes all employees are happily employed and will remain with the company after the sale. The employees are all very loyal and hardworking individuals who will continue to be assets for the new owner.

The buyer will get approximately 170K in current value assets made up of 7 vans, 5 trucks, 1 sedan, 3 trailers, 1 skid steer, 1 excavator, 2 trenchers, 3 scissor lifts, 1 forklift as well as a multitude of tools and inventory.

Location: South Denver

The sales price is 850K firm which includes all assets including inventory debt free. This is just over 2 times the earnings which is very inexpensive for a company this size that is growing. Plus, a better operator would be generating much higher profits. This company’s bottom line should be over $500K. Case in point the 2017 new hire that bid several jobs at a loss. 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 S Corp so this can be either a stock or an asset sale.

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 steady development in their market. They have a normal internet presence with some SEO and a website but advertising expenses are exceptionally low. They have long term relationships with many developers, builders, contractors, project manager, business owners, and homeowners.

Growth and Expansion: A new owner can increase advertising and take on more work. The current owner has not to aggressively grow the business due to a choice to dedicate his time to his young and growing family at home who. He believes a new owner with a passion for increasing the value of the business will do very well.
Keep in mind that the add backs taken in the adjusted earnings spreadsheet are traditional and do not accurately display the impact of the employee who failed the company at estimating in 2017, the owner's interest in his family, etc. There was no way to properly monetize this. The company utilizes QuickBooks for their accounting and financials appear to be in order and up to date.

The owner is satisfied and proud of the success and growth of the company but has made a decision to take time to be with his family. He will help the new owner transition the business for as long as the new owner needs and is confident that it will be a smooth transition. In addition to assistance from the current owner, the new owner will have a team of loyal, trustworthy, competent and reliable employees at their side.

Warehouse space very conveniently located in the Denver Tech Center less than 1 mile off of I-25. Quiet and secure locale. Ample parking for vehicles, trailers and equipment. 2,138 total square feet, approx. 50% Office, 50% Warehouse. Office area contains four offices, reception/conference room, break area, restroom. Entire Office area was updated less than 2 years ago. Warehouse is fully fitted with shelving for material storage and organization. Landlord maintains HVAC system and performs repairs as necessary at no cost to tenant. Triple net lease, current monthly rent is approximately 2,690. Rent was decreased as of 2019.

The business has a great reputation in the industry for safety, quality, and reliability. BBB accredited with an A+ rating. A low workman's comp MOD rate proves their level of safe practices. The seller will sign a non compete and agree to full Reps and Warranties to a solid legal and business standing. There are no regulatory issues on record, no lawsuits, and no disputes with the city, county, or municipality that they work in.

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,

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. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer.

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

Location:
Centennial, CO
Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
2,138
Lease Expiration:
N/A
Employees:
35
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Warehouse space very conveniently located in the Denver Tech Center less than 1 mile off of I-25. Quiet and secure locale. Ample parking for vehicles, trailers and equipment. 2,138 total square feet, approx. 50% Office, 50% Warehouse. Office area contains four offices, reception/conference room, break area, restroom. Entire Office area was updated less than 2 years ago. Warehouse is fully fitted with shelving for material storage and organization. Landlord maintains HVAC system and performs repairs as necessary at no cost to tenant. Triple net lease, current monthly rent is approximately 2,690. Rent was decreased as of 2019.
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 steady development in their market. They have a normal internet presence with some SEO and a website but advertising expenses are exceptionally low. They have long term relationships with many developers, builders, contractors, project manager, business owners, and homeowners.
Growth & Expansion:
Growth and Expansion: A new owner can increase advertising and take on more work. The current owner has not to aggressively grow the business due to a choice to dedicate his time to his young and growing family at home who. He believes a new owner with a passion for increasing the value of the business will do very well.
Financing:
15%
Support & Training:
He will help the new owner transition the business for as long as the new owner needs and is confident that it will be a smooth transition. In addition to assistance from the current owner, the new owner will have a team of loyal, trustworthy, competent and reliable employees at their side.
Reason for Selling:
Wants to spend more time with family
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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Sponsoring Broker:
Paul Olsen

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