High Profit Margin Engineering Firm in the Great Plains
117% ROI in the first year!
This industrial & commercial engineering firm in Oklahoma City has a sister company in India that would be included as well! There are three engineers and one CAD technician on staff, and the owner is willing to stay on for 2 years. They also work in partnership with a contracted firm that has five to six drafters and five to six engineers at any one time. This remote team is wholly dedicated to the work of the primary company. Their clients are 100% commercial, with their work including institutional buildings, warehouses, retail shopping centers, schools, gymnasiums, churches, and retirement & nursing homes.
Most of this company’s clients are in Oklahoma (95%), but those companies have multiple locations throughout the United States and due to their long-term relationships, the firm handles work for many of those projects. The owner manages the partnership with the contracted firm, as well as client relationships, general oversight, and has final approval for all plans before they are submitted to the customer. The company utilizes 2,600 square feet of space in a local office building. This space features private offices, an open work area, and a conference room. There is room within the building for expansion, if desired. Assets include office equipment, standard office furniture, and drafting and technical software.
This firm has tremendous growth opportunities. Expansion may be found in expanding the local customer base, building clients who need an engineering firm with experience working on projects through the US. Additionally, one could maximize the utilization of the sister firm in India to increase capacity and improve margins.
Priced at $1,500,000, a 15% down payment of $223,500 returns $249,208 in the first year after debt payments – a 112% return on investment.
- Year Established: 2006
- Location: Oklahoma City area, Oklahoma
- Service Area: 95% of clients are located in Oklahoma, but projects are completed in 27+ states
- Services: Structural engineering
- Clients: Commercial clients including offices, industrial spaces, educational facilities, convenience stores
- Lease: 2,600 sq. ft.: Private offices, open work area, conference room, room for expansion, if desired
- Reason for Selling: Strategic exit planning
- Personnel: 4: 3 Engineers, 1 CAD technician; 5-6 drafters at contracted firm
- Seller Training Period: 1-2 years
- Growth Opportunities: Maximize utilization of sister firm to increase capacity while maintaining positive margins, build client base in the OKC area, expand to additional states
- Current Owner’s Responsibilities: Oversight and final approval of plans
- List Price: $1,490,000
- 3-Year Average Cash Flow: $438,162
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$131,342||$156,309||$281,621||2021 includes adjustment for PPP loan|
|Comp to Owner||$245,596||$221,980||$246,542|
|Owner's Wife||$16,607||$5,400||$5,400||Not active in business|
|Taxes for Owner Salary||$47,337||$41,427||$42,995|
|Meals & Entertainment||$1,408||$265||$1,093||Personal expense|
|Donations & Contributions||$541||$0||$0||Discretionary expense|
|Owner's Life Insurance||$2,322||$1,982||$887||2 policies - owner & wife|
|Seller's Cash Flow = Total Addbacks + Net Income||$447,630||$449,764||$608,134|
|Profit Margin||51.71 %||48.45 %||58.30 %|
- Profit margin: 49%
Providing structural engineering services for general contractors, architects, and property owners on commercial projects such as:
- Office buildings
- Industrial spaces and warehouses
- Educational facilities
- Convenience stores
- And more
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Personnel: 4 Aside from the owner
- 3 Engineers
- 1 CAD technician
- Contracted firm:
- 5-6 Drafters
- Maximize utilization of sister firm to increase capacity while maintaining positive margins
- Grow the client base in the OKC area
- Expand to additional states
- Build client base who have locations in multiple states
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
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Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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