Annual Revenue: $1,877,160
Net Cash Flow: $298,204
The company is a licensed general and electrical contractor serving commercial and industrial clients across the USA and provides the following:
- Contracting services include electrical power, lighting, and smart building systems.
- Distribution of materials and equipment used in construction projects.
The Company revenue was $1.9M in 2021, growing at 152.9% CAGR between 2019 and 2021, operating at a gross margin of ~60%. Revenues are forecasted to grow at 22.6% CAGR between 2023-26 based on the current and known pipeline of work of more than $20m (in most important and with the highest chance of awarding – >80%)
In addition to the stated purchase price, the owner requires an earnout from the value of the current pipeline of large contracts (that are awarded, and executed by the company after the sale)
Team: The company is operated by the founder and owner who has certifications as an Honorably Discharged US Navy Service, Disabled War Veteran, Minority, and small business – and as such, for various federal projects, the Company gets priority when it comes to the bidding process for projects.
He is supported by 12 electricians and strategic sub-contractors (dependent on the contracts). In addition, the company has Admin, HR, Finance, and Purchasing agents supporting its operations.
Reason For Sale:
The owner wants to retire and is seeking a long-term business partner to take the company to the next stage in its growth ambition and continue to secure projects.
Training & Support:
The current owner is willing to partake in a transition process that will ensure minimal impact on business operations and the ability to focus on the top line.
The general and electrical contracting market can be divided into three – market leaders, local operators, and niche operators. The heavily fragmented market has many local and niche players operating across the USA. The company is a market leader with national reach and a range of services. The barrier to entry to play in the market is low; however, players will benefit from certification across states, veteran-owned status, and large bonding capacity to reach scale.
The market is fragmented, with independent players operating locally or in the state. This presents an opportunity for the company to acquire players who have secured federal contracts to expand inorganically and penetrate other states.