Profitable & Well Respected Electrical Contractor with Recurring Income Stream

Price: $460,000

Location: Southeastern Michigan

Industry: Electrical Contracting

Listing ID: FM311018EE

Status: New

Listing Description

Long established, fully-licensed and profitable electrical contractor serving the Metro Detroit area of Southeastern Michigan.  The company is well-known and highly regarded for exceptional customer service.  The company provides superior electrical service and back up and emergency generators throughout their geographic coverage. Clients include residential,  commercial and industrial.

A major growth engine for this company has been its emphasis on selling, maintaining and repairing Generac generators.  They are a leading dealer for Generac and have over 250 annual maintenance contracts, which provides them a growing recurring revenue stream.  Their plan is to add remote monitoring as a new option that will add even more recurring revenue.

Whether it is a simple repair, a remodel or new construction, this company knows how to service their clients from project concept to project completion.

Their mission is to deliver efficient, effective and economical solutions, that leave their clients 100% satisfied.

This company has six fully-stocked service trucks, with a team of well-trained licensed electricians and a Certified Generac Technician.

Listing Details

Total Sales: $935,913

Cash Flow: $253,516

FFE: $375,415 (Included in Price)

Inventory: $50,000

Real Estate: $636,000

Terms and Conditions?:

Seller willing to offer some seller financing to assist with SBA financing that is available at low interest rates.

Reason For Sale:

Retirement

Training & Support:

Owner willing to stay on for a period of time to allow the new owner to learn the business and assist in the transition.

Operation

Year Established: 1968

Days & Hours of Operation: Monday – Friday Business Hours. Also Offers After-Hours & Emergency Service.

Employees: 4

Location

Lease Option: Lease or Purchase of Real Estate Available

Monthly Rent: 2500

Type of Location: Standalone Building with 3 Units

Square Footage: 4,000 per Unit

Relocatable?: Yes

Facilities Information:

The business operates out of a 4,000 square foot unit in a 3 unit standalone building, residing on 0.886 acres in a desirable and convenient area. The real estate is available for lease or purchase.

The unit has private offices, copy room, reception area, restroom and unfinished shop area with restroom. The mezzanine over the front office is finished with several rooms looking over the shop space. The shop area has a large overhead door. There is ample parking for all the units.

The building was built in 1981 and has been well-maintained and in very good condition.

Summary

Owner Qualifications:

Must be a Licensed Electrical Contractor and must have a Licensed Master Electrician on the payroll.

Competition:

There are many electrical contractors in the company’s service area, but they have significant differentiators giving it a clear advantage over its competitors. The first advantage is always providing the best of quality in workmanship compared to its competitors. Second, their superior customer service, provided by well-educated and properly trained electricians makes the company a standout.  In addition, the company has 6 fully stocked service vehicles to keep each job properly supplied from day to day; a key ingredient necessary to satisfy customer deadlines. These factors are the foundation to their success including perhaps the most critical by any measure in the construction industry, a stable highly skilled workforce!

Potential Growth:

There is significant opportunity to continue growing their Generac generator business with increased new installations, maintenance contracts and adding remote monitoring services.

The plan of action to dynamically grow the business includes the following:

  • Hire a sales rep/estimator and technician to focus on sale of generators and maintenance contracts for residential customers. This residential electrician and/or generator technician would bring down costs for generator maintenance and installations.
  • Hire a sales rep/estimator to focus on commercial and industrial service work.
  • Offer remote monitoring of generator maintenance contracts for an additional $100/year.
  • Develop relationships with Lowe’s, Home Depot and Menards for referral electrical work.
  • Have 6 fully-equipped trucks and not using all today. Each truck should produce $500,000 in revenue annually.  The service truck is used primarily for generator maintenance.
  • Higher focus on residential generator sales and build a recurring revenue stream of $1 million.