Lighting Distribution & Maintenance with 3,000+ Active Clients
Absentee ownership – management team & staff will stay on post-sale!
The owner of this business is absentee; the management team and staff are committed to staying on board post-sale! This full-service lighting provider has mastered design, distribution, installation, maintenance, and repair since 1998. With a 9,600 sq. ft. headquarters in Phoenix, Arizona and one satellite branch, this business continues to meet the needs of over 3,000 active clients nationwide. The majority of customers are in the United States (90%), while 5% of clients are located in Canada and another 5% are in Central America. The staff is well-trained, and many employees have been with the company for 5-20 years. Team members include a sales department, a solid warehouse staff, a knowledgeable management team, and 1099 contractors are hired as needed. The management team is planning to stay on, ensuring continuity of operations.
Working with commercial and industrial businesses is the focus of this company. Large restaurant chains, hotels, multi-family housing projects, universities, and industrial customers are only the beginning of the diverse and impressive client list that results in steady work throughout the year. Providing excellent customer service, they seek to buy and sell products at the lowest price possible. Due to their approach, they can provide products and services for far less than their competition.
At the purchase price of 1,785,000 and a solid management team and staff in place, the transition for a new owner should be incredibly seamless. Expanding electrical services and improving online presence by adding online ordering would certainly lead to revenue growth.
- Year Established: 1998
- Location: Phoenix, Arizona
- Service Area: United States (90%), Canada (5%), Central America (5%)
- Clients: 3,000+ active, commercial and industrial
- Services: Distribution, lighting maintenance, retrofitting, lighting and sign installation
- Building: Location 1: 9,600 sq. ft. Location 2: 5,000 sq. ft.
- Reason for Selling: Divestment
- Employees: 21: CEO (1), Managers (4), Administrative (3), Sales (10), Electricians (3), 1099 (as needed)
- Hours: 6:30am – 5:00pm M-F
- Seller Training Period: Management is planning to stay on
- Growth Opportunities: Expand electrical services, improve online presence and user experience by adding online ordering
- Current Owner’s Responsibilities: Passive, oversight only
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$178,253||$21,910||$-79,010||$246,602|
|Compensation to Owner||$91,500||$12,000||$12,000||$117,000|
|11% Tax on total W2 Salaries||$10,065||$0||$0||$12,870|
|Meals & Entertainment||$6,000||$6,000||$6,000||$6,000||$500/month|
|401K for Owner||$18,000||$18,000||$18,000||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$300,075||$485,906||$263,168||$578,609|
|Profit Margin||11.75 %||9.49 %||4.37 %||7.96 %|
- Commercial retailers
- Restaurant chains
- Industrial facilities
- Multi-family housing
- Small businesses
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
A Sample of Services and Products Available
- Lighting Design
- Energy Analysis and Management
- Maintenance, Service, and Repair
- Inventory Management
- Utility Rebate Programs
- LEDs and CFLs
- Fluorescent Lighting and Lamps
- Halogen Lamps
- Emergency Lighting
- Metal Halide Lamps
- Incandescent Lamps
Specific information regarding services and products is available upon the receipt of a signed Non-Disclosure Agreement.
- CEO (1)
- VP (1)
- Operations Manager (1)
- Sales Director (1)
- Accounts Manager (1)
- Office Manager (1)
- Sales (8)
- Warehouse (9)
- 1099 (as needed)
- Expand electrical services
- Services could include non-lighting electrical services
- Significant opportunity to increase income
- Great profit margins in this type of work
- Easy to integrate into current projects and for current customers
- Improve online presence and user experience
- Increase functionality of the website
- Include customer log-in
- Include customer communication, ordering, and service request portals
- Add online ordering with excellent user experience
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: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
4-year average cash flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
4-year average cash flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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Omaha, NE 68114
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