MergerPlace

Electrical Contractor

New Jersey


  • Asking Price: $800,000
  • Gross Income: $906,531
  • Cash Flow: $309,133
  • Real Estate: Not Disclosed
  • Inventory: $3,066
  • FF&E: $153,230
  • Listing ID: #211947
  • Established: 1991
  • Employees: 7 FT

Business Description

Very successful electrical contracting business for sale in New Jersey. The business specializes in the design, installation and maintenance of electrical systems in homes plus some commercial buildings. Established in 1991, the company has been an industry leader for 28 years. Their revenue is derived from 90% project-based and 10% maintenance work. Their customers are 95% contractors working on new installations. Well respected brand with 100% of business coming from referrals and repeat business. The company has a very high Bid-Hit Ratio winning 80% - 95% of the jobs they bid on.

The Company has well-defined systems and processes for growing sales and maintaining a strong cash flow while managing a substantial work load. This is a Turnkey Operation with work scheduled for the next 9 + months. Sales have had steady growth each year and are projected to break the $1MM mark in 2019. The profit margin has improved as well and is currently over 25%. The industry is growing with Construction expected to have a 4% GDP annual growth. The company is at capacity and is turning jobs away. A new owner could grow another 20% by adding 1 more mechanic with no CAPEX. The business has a team of dedicated tenured employees. This Committed Workforce will stay with new owner.

The company specializes in electrical construction services primarily involve the design, integration, installation/start-up, and provision of services relating to electric power transmission and home electrical and lighting systems (fixtures and controls). Their electrical construction services generally fall into large installation projects that involve construction of multi-unit housing and single home manufacturing and smaller installation projects involving fit-out, renovation and retrofit work. The average job size is in excess of $20,000 and the company is on 2 - 3 jobs at any given time for approximately 40 jobs per year.

Over the past several years, the owner has made a conscious decision to instill well-defined systems and processes to help increase the efficiently of the business. The business runs as a turnkey operation and the owner is in the field daily but as an overseer and focuses on long term strategic goals as well as quality control. Many of the customer and supplier relationships are not controlled/managed by the owner but are maintained through the lead mechanics.


Business Details

Primary Business Category: Contractors - Special Trade
Location: New Jersey

Company Information

Year Established: 1991
Home Based: Yes
Franchise: No
Relocatable: Yes
Number of Employees: 7 FT

Financial Information

Asking Price: $800,000
Gross Revenue: $906,531
Cash Flow: $309,133
FF&E: $153,230
Inventory: $3,066
Seller Financing Available: No

Property Information

Facilities:

The Business can be run as a home-based business with a 500 to 750 sf storage area for equipment and parking for the trucks.

Growth & expansion opportunities:

This well respected brand offers substantial growth opportunities. Currently turning away work. Add service work and more service to grow rapidly.

Competition:

The Business has a long-time customer base with several General contractors that require ongoing work. Business continues to grow however the seller cannot take on all of the work their company is getting without expanding the staff. Ideal opportunity for younger electrician or company or to expand an existing construction business.

Reason for selling:

After 28 years the seller would like to semi retire and relocate to another state.

Support & Training:

Will train for 4 weeks @ $0 cost. To operate this business in New Jersey, someone in the company must have and maintain a master electrical license. Currently, the company is operating under the owner’s master electrical license. There are no individuals on staff with the master electrical license.

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Business Listed By:

Russell Miller

Murphy Business Brokers