SOLD: This electrical contractor is a thriving company located in a rapidly growing area of Collin County. The owner established the company in 1984 and has experienced continual growth. The new owner will benefit greatly from the solid reputation for quality work and exceptional customer service built for over 24 years. At the same time, there are multiple ways to grow the business.
| Listing No: MBFS-600404837 | *Lender Pre-Qualified* |
| | |
| Category | : | Construction | SIC | : | 1731 | |
| Detail | : | Contractor Electric | Price | : | 190,000 | |
| County | : | Collin | Down | : | 38,000 | |
| State/Prov | : | Texas | Adj Net | : | 101,400 | |
| Country | : | USA | Sales | : | 146,362 | |
| Reason for Sale | : | Wants to relocate |
| General Location | : | Collin County |
| Organization Type | : | Sole Proprietorship Hours Owner Works: 50 |
| | : | Years Established: 24 Years Owned: 24 Emp FT: 1 Emp PT: 0 Mgrs: 0 |
| Non Compete | : | Miles: 40 Years: 2 Weeks Training: 2 Cost: 0 |
| Operating dys/hrs | : | M-F 8am-6pm, Sat 8am-2pm |
| Skills/Licenses | : | Master Electrician's License - General Business Knowledge |
| Business is | : | Relocatable: Y Home Based: Y Franchise: N Lender P/Q: Y |
A Dozen Due Diligence issues with Electrical Contractors for Sale in Texas
In addition to financial matters, a buyer interested in an electrical contractor for sale in Texas should consider discussing many of the following issues with the shop owner or their business broker:
How are cyclical sales handled?
Electrical contractor revenues are often very dependent on new construction. New construction is subject to both seasonal and economic business cycles.
What is the owner's role in the business?
Must the buyer be a licensed electrician or can a buyer operate successfully with business management skills.
Is there any customer concentration?
While repeat customers are vital, having any single customer amount to more than 20% of sales is a weakness.
Is the home automation market being addressed?
This is a growing opportunity for electrical contractors, especially those in residential markets.
How are skilled employees retained?
Licensed electricians may be hard to find during periods of peak construction activity.
Are there opportunities for diversification?
Gross margins are higher where "total solutions" can be offered.
What is the split between residential, industrial, and commercial work?
Smaller electrical contractors tend to specialize in a single market sector.
How are contracts priced?
Most project electrical contracting is done on a fixed price basis, while residential electricians can charge time and materials.
Has the company invested in new equipment or technology?
What about the competition?
Where does new business come from?
Look for growing referrals from satisfied customers and steady business from general contractors.
Have insurance costs increased?
Rising insurance can significantly reduce gross margins.
How is the estimating done?
Profitability for larger contracts rests on accurate estimation and solid project management.
Resources for Electrical Contractors for sale
National Electrical Contractors Association
How to Conduct Market Research (SBA)
Frequent Questions about Texas Sales Tax
Confidentiality Policy
As business brokers, we protect the identities of the businesses, the business owners and prospective buyers until we receive completed, signed Confidentiality Agreements and personal or corporate financial statements providing proof of the buyer’s financial competence to meet the down payment. We understand that the sale and purchase of businesses must be held in the strictest confidence to give the involved principals the opportunity to advise employees, customers and others of the transfer when they feel the time is appropriate
For additional information contact Bob Fariss
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