Profitable Low Risk Electrical Contractor For Sale

Business description

The company has been providing electric contracting and services for over two decades. A solid low risk company that has exhibited consistent revenues, profits and owner’s draw over the years. Services include new design where required and modifications to existing blueprints as well as new installations and ongoing support clients in the residential, commercial and industrial sectors.

The contractor has a mix of residential, commercial and industrial clients. The company has a steady list of clients that cover the overhead and fixed costs of the business thus allowing the gross margins on each project to add to the bottom line of the company. Over the years, the owner has tried to maintain a balance between the various sectors and not have a large dependency on any one sector or client. The company will acquire project work directly or indirectly as a sub contract to one of the many engineering or contracting firms in the city. All the business is performed within the surrounding area (within 100 km).

This established company has a good reputation in the marketplace, a strong balance sheet, a long history of profitability and an experienced skilled staff to move forward in a growing market. This is a tremendous opportunity for an owner with an electrical background and the business is at the stage where it can offer a pleasant lifestyle “operating as is” in a community that most only dream in living in. A corporate buyer will acquire an immediate acceptance in a growing market, a highly in demand skilled non union work force with work booked for months to come.
The company is non union and enjoys a positive working relationship between the owner and the 20 employees. The owner has developed a winning strategy and business approach to running a profitable electrical business and would be willing to stay on for a specific period of time to ensure a successful transition to the new owner(s).

Property information

Real Estate:

Real Property Included

Location:

The business operates from a mortgage free, 3,200 square foot wood frame building located on a 1/2 acre parcel of land. The lot has a large parking area in the back and excellent curb side appeal in a well maintained industrial park. The building is 15 years old and has been well maintained. There are no known deferred maintenance issues. The contractor has fleet of 9 trucks that are on average 6-7 years old.

Other information

Expansion potential:

Pros: Several specific opportunities for growth have been identified and involve expanding the company’s market area. Additional tradespeople and junior management could be added to accommodate the increase in business.
Cons: Skilled tradespeople are in great demand but the company has a network of contract personnel.

Competition / Market:

Pros: There are several competitors but the company has a strong reputation and relationships in the local area and has been profitable for many years. Competition is stable and at times will work together in certain areas. There is more general demand than supply in the market area. Cons: There are a number of locally based competitors.

Support & training:

Office manager and estimator will remain after the sale. The seller will assist the new owner during a reasonable transition period.

Reasons for selling:

The owner is 67 years old and looking to retire.

Furniture / Fixtures value:

$82,000

Inventory / Stock value:

$43,500

Contact the seller