Asking Price: $1,300,000
This opportunity is a highly profitable commercial and industrial electrical business based in Illinois that offers a wide array of services in addition to being an authorized Generac dealer and installer. The Company specializes in providing electrical services for agricultural producers, which is demonstrated by the Company serving as an authorized representative of many major agricultural equipment and electronics brands. Operating within this niche, specialty area has led to the Company earning high profitability margins.
This commercial and industrial electrical business was founded in 2009 and is currently owned and operated by the founders. Both owners are actively involved within the Business on a full-time basis. Both Owners are open to the details of the transition and are willing to remain with the Company under the correct compensation and conditions for up to one year post-sale.
The Company employs three individuals who intend to remain with the Business post-sale. Owner 1 enjoys serving as a mentor and a leader alongside each employee.
The Company currently operates out of a facility owned through the Owners’ real estate holding entity. The property is well-maintained and visually appealing, both on the interior and exterior. The facility has an estimated market value of $95,000. Ownership is flexible regarding the sale or lease of the real estate.
Additional Information
Number of Employees: 5
Year Established: 2009
Facility: The Company operates out of facilities owned by the Owners. The Company’s occupied space encompasses 2,400 square feet of warehouse/open storage space and 176 square feet of office space. The office space includes one full bath, as well as one half bath. The warehouse space is insulated and contains 200-amp electrical service throughout to fulfill all the Company’s needs.
Support/Training: Both Owners are willing to remain employed by the Company for up to one year upon the sale of the Business to ease the transition process and provide all necessary training and support.
Reasons for Selling: Ownership would like to pursue retirement.
Investment Highlights
(1) Strong Bottom-Line Margins: The Company has boasted strong bottom-line cash flow margins, ranging from 38.0% to 41.5% (in the form of Seller’s Discretionary Earnings) each year between 2018-2021. While the Company’s revenues have grown at a compounded annual growth rate (CAGR) of 10.8% over this period, cash flows have simultaneously grown at a CAGR of 8.5% throughout this same period.
(2) Dealer Relationships: The Company maintains relationships with major electrical equipment suppliers, such as Dryer Master, Mathews Company, CMC Industrial Electronics, and Generac, to name a few. Given that the Company is an authorized installer for each of the brands’ products, many customers are referred to the Company via each manufacturer noted above.
(3) Commercial Customer Base: The Company maintains a customer base of primarily commercial customers, as these relationships serve to be more predictable and present higher profitability opportunities. Many of the Company’s commercial customers require annual maintenance and inspections to be performed, for which the Company is turned to year after year. In addition, larger customers create less travel time between job sites, allowing the Company to record more billable hours.
Growth Opportunities
(1) Indoor Electrical Service Offerings During Off-Season: Given the Company’s roots within the agricultural industry, the Company primarily operates throughout the spring, summer, and fall months. Expanding the Company’s services offerings to include indoor electrical service offerings throughout the winter months could drive additional revenues throughout otherwise slower periods.
(2) Further Expansion of Generac Offerings: The Company is a licensed installer of Generac standby home and commercial generator systems. Currently, the Company’s generator service offerings are limited to installing and servicing standby systems; therefore, increasing Generac offerings could attract new customers and provide new opportunities. The Company has realized much success in this segment throughout the previous years since introducing Generac electrical services.
(3) Implementation of CRM Solutions: With an investment into a customer relationship management (CRM) system, the Company could not only expand operations but manage relationships more effectively. A CRM solution tailored to small business applications could assist the Company in analyzing and tracking both customers and key performance indicators, which in turn could lead to the increased effectiveness of sales and marketing efforts.
(4) Recurring Revenue and Service Contracts: Having focused on serving commercial customers, the Company could begin implementing annual service contracts. Securing larger customers through an annual agreement could allow the Company to forecast revenues, budget expenses, and required materials, and invest more efficiently in the Company’s future growth and expansion.
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Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this highly profitable commercial and industrial electrical business for sale!