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Commercial Electric Contractor w/25+ on Staff

Lighting Installation & Electric with $34 Million Backlog!

CASH FLOW
$1,015,788

Specifications

  • Revenue
    $11,989,250

  • Cash Flow
    $1,015,788

  • Equipment
    $524,750

  • Location
    Jamacia, NY

  • Employees
    5 office staff and 20 electricians

  • Multiplier
    2.85

This commercial electric contractor is expected to continue doing exceedingly well and see ongoing growth as they currently have $34,600,000 of backlog in signed contracts for 2022 and 2023. Keeping these finalized contracts in mind, this business has an annualized cash flow of $1,015,788 which is higher than their pre-pandemic cash flow. 2022 has $14,400,000 in backlog and 2023 has $20,200,000 meaning that new ownership has the chance to slide into their role before the price of this business would jump up significantly next year. This company is well-staffed, with over 20 tradesmen on staff, along with 5 office staff to handle operations and clients. This industry leading team works with electrical contractors and large company buildings as well as transportation businesses specializing in rail, bus, and elevator services. Their services include lighting, power, access control, fire alarms, analytics, system installation, and security systems. They are a value-added reseller and handle electrical installation but are not general contractors. They specialize in establishing BIM contracts for clients using industry-based software. Using these tools make the design and installation of electrical projects more efficient and cost effective. The current owner handles general oversight, and, to show their explicit belief in the success of the business, the seller has offered seller financing with benchmarks and equity roll for 30% of this purchase which is far above the market average of 10%.

 

Located in Jamacia, NY, and operating in all five boroughs, this company consistently offers competitive pricing to obtain both small and large projects. This business has multiple routes for possible growth including becoming an electrical provider for job sites. In addition to the soft assets like the excellent business practices currently in place, a buyer would also be getting over $1.9 million in assets with the business.

 

With a down payment of $290,000, a buyer can acquire not only this business, but also their reputation for being dedicated to providing quality and reliable electric work to its clients. Due to the fact that they have been in business for almost 30 years, a majority of their clients are repeat or referrals. This electric company is ready to leave a new owner with an experienced crew and client base that will continue its effective work and legacy. 

Purchase Price:

$2,900,000

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Years
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Bank Loan Needed: $

Years
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2022 Annualized Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2022 Annualized Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.