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This long-time established Electrical Contractor in Eastern PA provides reliable engineering, design and construction services to commercial and industrial customers. The firm enjoys significant operating margins and documented profitability. The company has a substantial pipeline of ongoing business and an impeccable long-term customer base that will be transitioned at the time of transfer.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 2.2x SDCF (ttm). A full valuation report is included in the prospectus. There is $634k in Net Working Capital plus another $427k in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner-operator will obtain more than $800k benefit in after- acquisition-debt cash flow in Year #1 – a 77% return on equity investment.
(all data based on signed tax returns)
This business currently operates from a 7,500 sq. ft. leased warehouse with office space.
It is projected that a new owner will obtain additional growth by adding personnel with a minimal investment of $100k. The company projects a revenue growth rate under such premise of more than 10% per year. With a more concerted marketing effort and aggressive bidding approach, revenue growth of 20% per year can reasonably be expected.
The company enjoys a strong competitive advantage by offering a full service approach (design to construction) to a stable customer base, some of which have been with the company since inception. In addition, the firm holds licenses and has many approved vendor qualifications – providing natural sales growth opportunities moving forward.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
$0.4m Seller financing plus $2.8m Bank financing subject to buyer qualification
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