Wireless Tech Service for Cell Site Towers
Over $8M in assets – loan will be nearly 100% collateralized!
- Year Established: 2001
- Location: Primary location in Orange County, California; locations also in Washington, Texas, New Jersey, Pennsylvania, and D.C. metro
- Service Area: Nationwide
- Services: Cell site development, integration & commissioning, optimization, network maintenance, quality control
- Clients: Wireless vendors, service providers focused on wireless networks
- Reason for Selling: Retirement / Age
- Personnel: 78 W-2: 1 VP, 6 admin, 28 in the field on construction side, 40 in telecom division, 3 project managers/construction managers; subcontractors as needed
- Seller Training Period: 6 months to 1 year, assuming owner remains part-time after the initial transition
- Growth Opportunities: 5G expansion in both Telecom and Mobile divisions, have dedicated salesperson to solely focus on sales, increase number of subcontractors, open a New Jersey office
- Current Owner’s Responsibilities: High-level oversight only. Has no day-to-day role
- 2020 – estimated remaining for October to December 2020 - $3,500,000
- 2021 – estimated moved from 2020 due to COVID Pandemic - $2,000,000
- 2021 – estimated Mobile Handset - $3,000,000
Seller Financing: Owner is willing to finance or do an equity roll.
*Loan will be nearly 100% collateralized!
- Gross Sales:
- TTM: $7,285,796
- 2019: $6,452,919
- 2018: $6,064,685
- 2017: $5,533,843
- Cash Flow:
- TTM: $1,154,315
- 2019: $1,250,103
- 2018: $1,090,834
- Assets Included in Purchase: $8,024,890*
- Inventory: $207,566
- Equipment: $6,777,636- 14 sweep testing kits, 6 fiber testing kits, 12 PIM testing kits, 11 GPS alignment tools, 7 fiber testers, 1 concrete coring machine
- Vehicles: $1,039,088: 22 heavy duty trucks
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
June 2019-May 2020 - Accrual
|Net Income Shown on Financial Statement||$1,289,779||$1,349,107||$472,423|
|Compensation to Owner||$38,450||$100,000||$126,413||For owner & wife - no replacement needed|
|Other unrelated Salaries||$66,000||$160,000||$0||For son - roles already being handed off|
|11% Tax on total W2 Salaries||$11,490||$28,600||$31,905|
|Auto Lease / Loan||$4,560||$4,560||$4,560||Personal expense|
|Auto Maintenance||$8,000||$8,000||$8,000||Personal expense|
|Auto Insurance||$8,000||$8,000||$8,000||Personal expense|
|Rent Overage||$48,119||$70,356||$52,249||$33k onward going|
|Cell Phones||$7,800||$7,800||$7,800||Personal expense|
|Consultants/Professional Fees||$110,283||$110,000||$0||Personal Expense - See CPA Notes Below|
|Overstated Income 2014-2015||$0||$0||$0||One-time adjustment|
|Deferred AR Previous Years||$0||$0||$0||One-time adjustment|
|Cancellation of Debt Income||$-960,155||$-960,155||$0|
|Wage||$18,000||$18,000||$18,000||Adult Child-Not Working|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,154,315||$1,250,103||$1,108,834|
|Profit Margin||15.84 %||19.37 %||18.28 %|
- Profit Margin: 16%
Consultant Expense Analysis
- Cell Site Service Offerings
- Network Maintenance
- Quality Control
- Actively targeting the following:
- 5G Small Cell Construction
- 5G Fiber Infrastructure
- Fiber to home construction
- 82 W-2 Employees
- 2 SVP’s: each operate and fully manage their division
- 6 project managers/construction managers
- 40 in Telecom Division
- 28 in the field on construction side
- 6 administrative associates (including an Office Manager with 12-year tenure)
- Key people are on wireless and they keep RF engineers working remote from India to reduce the cost until RF projects and demands ramp up.
- Installers & Integration subcontracted as needed
- No dedicated salesperson; they receive enough work from clients as an approved tier one vendor
- Will bring in local manpower to complete work across country.
- Design work is done by 4 power crews, the majority being engineers, and the foremen, who are always engineers.
- Bidding committee comprised of the Operations Manager, Project Managers, Civil and Telecom Construction Manager prepare the initial bid and finalize it.
- Once the bid is finalized, it is forwarded to the Project Manager and an SVP. They will adjust the bid for profit and make any adjustments before sending the bid to the customer.
About the Owner
Founded in 2001 in Seattle, WA, the owner is now 66 years old and ready to enter retirement. Owner’s compensation in this case is paid to the owner and his non-working wife – the duties performed by the owner are very high-level and they foresee that the new buyer will be able to step in with a hands-off approach to simply monitor the balance sheet. There are two competent VP’s (one over each division) and they handle everything but the biggest of big picture items.
- 5G expansion in both Telecom & Mobile Divisions
- Have dedicated salesperson to solely focus on sales
- Increase number of subcontractors
- Company is purchasing a 90’ man lift for all the small cells over the next 2-3 years. This will be an additional 260k/year.
- Open a New Jersey office
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