Opportunities
Solar Contractor in Iowa – Residential & Commercial
Well-established in the tri-state region: Iowa, Illinois, & Wisconsin!
Specifications
Providing solar integration for residential & commercial clients, this company is well-established in the tri-state region of Iowa, Illinois, and Wisconsin! Based out of a 4,000 sq. ft. space in Dubuque, the team has an experienced Master Electrician and Project Manager already in place; install and electrical work is subcontracted out as needed. With over 400 installs since the company’s inception, warranties have expired, which could certainly lead to service contracts being offered and a boost in revenue. The 2 owners currently share operations and development roles. The range in price for residential customers (50% of their client base) is $17-$25k. On the commercial side, it can range from $20k-$2M, depending on the size and scope of the project. They currently have 300 clients and $10M in the Pipeline. There is a well-established reputation with some large-name commercial clients in the region, with long-standing relationships ranging from 2-7 years. The company uses top-notch Helioscope software for project design and industry-leading Energy Toolbase software for proposals.
Assets include a 2019 Chevy 2500, a 2015 Ford F150, a 2015 Chevy 1500, and a work van, totaling $80,000 in value. There are substantial growth opportunities for a new owner. As electrification is increasing throughout the country, customers looking to take advantage of the tax incentives and economic benefits of solar integration will only increase. Expanding the client base in the commercial and industrial space would lead to tremendous growth.
Business Highlights
- Year Established: 2013
- Location: Dubuque, Iowa
- Service Area: Primarily Tri-State area: Iowa, Illinois, & Wisconsin
- Services: Turnkey solar solutions for residential & commercial clients in the region
- Clients: Residential (50%) & Commercial (50%)
- Lease: 4,000 sq. ft.: 50% is office space, 50% is warehouse storage space
- Reason for Selling: Other non-compete opportunities
- Personnel: 4: 2 Owners + 1 Master Electrician & 1 Project Manager; install & electrical subcontracted as needed
- Seller Training Period: 6-12 months
- Growth Opportunities: Expand client base in commercial & industrial space, add maintenance/service contracts
- Current Owners’ Responsibilities: Operations & Development
Financial Highlights
- List Price: $2,650,000
- Gross Sales:
- 2020 TTM: $8,156,688
- 2019: $6,764,265
- Cash Flow:
- 2020 $662,003 Annualized
- 2019: $132,052
- 2018: $295,226
- Assets Included in Purchase*
- Equipment: 2019 Chevy 2500 ($40k), 2015 Ford F150 ($20k), 2015 Chevy 1500 ($15k), Work Van ($5k)
- Software: HelioScope & Energy Toolbase
- A/R: $637,782
- Pipeline: $10M
- Intangible Assets: Long-term client relationships, well-known in the Tri-State Region
*amounts may vary, assets may be depreciated, replacement cost, or fair market value
Cash Flow Analysis
| Description of Financial Statement | P&L Statement Jan-Aug 2020 - Cash | P&L Statement Sept 2019-Aug 2020 - Accrual | Tax Return Cash | Tax Return Cash | Tax Return Cash | Notes |
| 2020 | 2020 | 2019 | 2018 | 2017 | ||
| GROSS SALES | $2,762,229 | $8,156,688 | $6,764,265 | $1,141,194 | $1,541,242 | |
| Annualized | $4,143,343 | |||||
| Net Income Shown on Financial Statement | $424,163 | $849,106 | $73,003 | $272,932 | $-121,108 | |
| ADDBACKS | ||||||
| Depreciation | $0 | $36,819 | $4,413 | $0 | $0 | |
| Interest | $4,068 | $7,469 | $15,510 | $6,607 | $391 | |
| Dues | $1,202 | $1,202 | $1,683 | $2,619 | $1,635 | 50% personal |
| Cell Phone | $913 | $930 | $1,109 | $2,868 | $2,278 | |
| Legal Fees | $0 | $0 | $19,792 | $0 | $0 | Reinstatement of S Corp |
| Rental Equipment | $3,780 | $3,851 | $5,797 | $1,398 | $0 | 50% onward going |
| Rent | $4,666 | $7,000 | $7,000 | $7,000 | $7,000 | |
| Meals | $2,543 | $6,071 | $3,745 | $1,802 | $189 | |
| Donations | $0 | $0 | $0 | $0 | $2,000 | |
| TOTAL ADDBACKS | $17,172 | $63,342 | $59,049 | $22,294 | $13,493 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $441,335 | $912,448 | $132,052 | $295,226 | $-107,615 | |
| Annualized | ||||||
| Profit Margin | 15.98 % | 11.19 % | 1.95 % | 25.87 % | -6.98 % |
- Profit Margin 2020 TTM: 11%
Clients
- Residential (50%)
- Commercial (50%)
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
- Turnkey solar solutions for residential & commercial
Personnel
- 2 Owners: Operations & Development
- 1 Master Electrician
- 1 Project Manager
Growth Opportunities
- Expand client base in commercial & industrial sector
- Add maintenance/service contracts
Funding Example
Purchase Price: $2,650,000
12.5%Buyer Down Payment: $331,250
12.5%Seller Financing: $331,250
75%Bank Loan: $1,987,500
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $6,176.
Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $22,065.
After business expenses and loan payments, a buyer with a 12.5% down payment of $331,250 would retain a profit of $323,113, which results in a 98% return on investment in the first year.
A lender is required to have a minimum 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $2,650,000 with the terms listed above, the coverage ratio is 1.95.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
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: 2020 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: 2020 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: | % |
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857