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Electrical Shop for Municipalities with 20 Million in Backlog

Only $450,000 Down, Comes with $2.6 Million Working Capital!

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
    4.15

Established in 1993 and located in NYC, this business operates in all five boroughs consistently offering competitive pricing to obtain both small and large projects. This Commercial Electrical Contracting company focuses on System Installation & Power for municipal projects. This company’s backlog for 2023 currently stands at $20.2Million with a Working Capital valued at $2.9Million. No bank loan is needed to finalize this deal, the seller asks that the new owner would absorb the 3 loans already in existence. The buyer would receive $2,635,000 in Working Capital as a part of the assets of the business, this will make a notable difference in offsetting the debt absorption associated with the purchase. Their services include lighting, power, access control, fire alarms, analytics, system installation, and security systems. This industry leading team works with electrical contractors and large company buildings as well as transportation businesses specializing in rail, bus, and elevator services. With the thought of a “recession” looming, this company will be growing, as the newly passed Infrastructure Bill will directly impact this company’s revenue and shield them from economic downfall. The current office space is 3,000 sq. ft. with 5-office staff that handle operations and client relations with 2 additional warehouses with over 20 tradesmen.

 

They specialize in establishing BIM contracts for clients using industry-based software. Using these tools to make the design and installation of electrical projects more efficient and cost effective. The current owner of this commercial electric contracting company handles general oversight of the business and is looking to sell so she can spend time with her terminally ill spouse. The current owner has agreed to stay on for a year to provide a smooth transition and will maintain 20% equity if desired by the buyer. With a down payment of $450,000, 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:

$4,220,000

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Bank Loan Needed: $

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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
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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
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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
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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.