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$970,000
Sold For
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$1,051,139
Revenue
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$620,366
Discretionary Earnings
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No
SBA Financing
Electrical and control systems for medical/healthcare facilities is considered an essential business during the COVID19 crisis. The company remains open and continues to support its healthcare clients with critical improvements and facility upgrades. The company specializes in design and installation of large medical/healthcare facilities power distribution, electrical panels, automation, instrumentation & control systems. The company $1.05M Sales, $631,812 DE, $161,915 Down Payment with SBA qualified buyer. Established in 1997 the company has a very exclusive clientele of some of the largest manufacturing firms in Orange County. The company specializes in industrial/factory electrical systems and controls.
Financial Summary
| Summary | 2019 | 2018 | 2017 |
| Revenue | $1,051,139 | $718,869 | $853,576 |
| Cost of Goods Sold | $350,930 | $118,184 | $224,919 |
| Gross Margin | $700,209 | $600,685 | $628,657 |
| Operating Expenses | $246,687 | $258,836 | $238,677 |
| Net Profit | $453,522 | $341,849 | $389,980 |
| EBITDA | |||
| Owners Benefits | $166,844 | $146,547 | $133,184 |
| Discretionary Earnings | $620,366 | $488,396 | $523,164 |
Summary:
* $1,051,139 sales 2019
* $631,812 Discretionary Earnings 2019
* Asking $970,00 + A/R
* SBA financing available for qualified buyer
* Seller Note $100,000 with SBA financing
* $161,915 down payment with SBA Financing (including A/R)
* $475,904 Net After Debt Service with SBA financing
* Excellent books and records, minimal add backs
The company is well known for its expertise in the design and installation of large factory electrical systems and controls. The company has an excellent track record of steady/consistent revenue and earnings over the course of many years. Growth has been capped by the owner’s preference to keep the company small and easy to run for his personal lifestyle. The company selectively takes projects and there is abundant opportunity to expand by accepting more projects, expanding beyond Orange County, and hiring additional staff. The company does not have an active marketing program, the current customer base and referrals have consistently kept the firm busy with sufficient backlog.
Services:
* Power Distribution, Automation, Controls and Instrumentation design and installation
* Electrical Panels from several hundred amps to over 4,000 amps, e.g. 480 VAC 4,000 amp service
* PLC and control panel installations
* Instrumentation design and installation
* Pneumatic control systems
* Tenant Improvements for factory automation and electrical service
* Factory Electrical Panel & Controls Design
Buyer Skills and Requirements:
The owner is actively running this business and the buyer will have to be willing and capable of learning to run this business. While the buyer does not necessarily have to be a trained electrician they must be willing and capable of learning the technical aspects of this business. This is not a passive owner business.
The owner has a C10 Electrical Contractor License and will act as the RMO (Responsible Managing Officer) for the buyer for up to 12 months (maximum allowed by SBA). The buyer will have to obtain their C10 license. The Seller does all proposals and quotes for projects and will train the buyer in this process. The Seller will provide training for 4 weeks/40 hours per week and in addition will provide limited consulting as negotiated after the initial training period.
Reason for Selling:
The owner is retiring and would like to find a qualified buyer that will continue to successfully run the business.
Down Payment and Working Capital Required:
The down payment and working capital required for this transaction is a minimum of $161,915 down payment with SBA financing, plus working capital estimated at $50,000. SBA financing includes estimated $75,000 for A/R purchase. Financing details are in the Confidential Information Memorandum (CIM) provided after receipt of your NDA.
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