The founder-owner-seller of this highly successful 22 year old electrical and cabling systems business is ready to retire after transitioning his company to only its second owner. The company provides installation services for voice, data, video, and security wiring in addition to installing power and lighting in commercial buildings. The business offers complex electrical, information technology, and other technical solutions which few companies can provide.

The company, located in one of Michigan’s most desirable communities (in Washtenaw County – SE Michigan) has an impressive list of blue chip clients located throughout the area.100% of revenues are generated from highly desirable “b to b” sales activity. Customers include both general contractors and end-users. The company has both an outstanding record of repeat business and a strong referral base for obtaining new clients. The stellar reputation of the company makes it an easy decision for potential clients to engage the company to do this important work.

This high cash flowing business with 13 highly skilled, loyal, employees operates out of a modern and conveniently located 1,900 square foot leased facility. The current favorable lease (rent is less than 6% of revenues) expires late this year giving a buyer the opportunity to either renew the lease or relocate the business to a facility of the buyer’s choosing. Many of the employees are affiliated with one of two electrician’s unions. This results in the company having the opportunity to receive projects for which a union workforce is specified.

In 2015, record revenues of $3,440,000 were recorded. Revenues through the first nine months of 2016 were $2,467,000, and with a current backlog exceeding $2,000,000, full 2016 revenues are projected to match or exceed last year’s results. More importantly, the SDE (seller’s discretionary earnings - the historical, normalized cash flow available to pay an owner-operator and service debt) was an impressive $430,000 in 2015, and is on track to exceed that figure in 2016. The strong results have been consistent with the four year weighted SDE of $480,000. The business is being offered for $1,295,000, an attractive 2.7x multiple of the four year weighted SDE. Included in the listing price is all equipment with a cost basis of $300,000. In addition, for a qualified buyer a six figure seller note could be available. The current owner is willing to remain with the business for up to two years, if desired by the buyer.

Posted Sep 12, 2016

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