Industrial Electrical Power Contractor 30+ yrs, $1.9 M Sales, $566K DE, SBA financing

High-profit margin, steady growth, excellent books, and records plus SBA financing!  Industrial Electrical Systems & Controls Contractor specializing in the installation of large plant and factory power distribution systems, and electrical panels is available for acquisition. $1.9M Sales, $566,092 DE, $137,000 Down Payment with SBA qualified buyer.

Established in 1988 the company’s clientele includes large Los Angeles manufacturing, industrial, data centers, commercial cold storage, and other larger commercial companies.  The company does not offer any residential services or new home construction.

Summary: 

• $1,926,835 sales 2020
• $566,092 Discretionary Earnings 2020
• SBA financing available for qualified buyer
• Seller Note $120,000 
• $137,000 down payment with SBA Financing 
• $388,615 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 power systems which often are several Megawatts.  The company also designs, builds, and installs UL  power distribution panels for industrial use.  

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, and by expanding beyond LA 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 Systems up to several Megawatts 
• Power Stations
• Electrical Panels from several hundred amps to Megawatts  
• UL Power Panels  
• Power Systems Engineering and Design  
• Tenant Improvements for factories/plants  

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 moving out of state 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 $137,000 down payment with SBA financing, plus working capital estimated at $100,000.  SBA financing includes an estimated $100,000 for A/R purchase.  Financing details are in the Confidential Information Memorandum (CIM) provided after receipt of your NDA.