Electrical Contractor Selling Business - Will License Company
| Asking Price: | $150,000 |
| Inventory: | $100,000 |
| FF&E: | $25,000 |
| Gross Revenue: | $1,400,000 |
| Rent: | $1,300/Month |
| Established Year: | 2015 |
Motivated Seller - Great for a First Time Buyer!
The business did $1.4 million in revenue in 2022 and $1m in 2023. 2022 was profitable, but we actually took a loss last year. We were voted the Electrical Contractor of the year the last two years and we have a good customer base. We have two vans on the road for service, both 2023 Ford Transits. We also have a 2004 Dodge Ram. We have @ $100k in tools, equipment, and inventory.
We were doing most of our revenue from construction, but it has become increasingly difficult to get paid on time and sometimes at all. We have transitioned away from these types of jobs unless we have a relationship with the General Contractor. We have liens out on two jobs right now for over $250k. One is set for trial in July, this one is @ $225k.
I have been fighting this battle for the $225k job for almost two years. They made an offer to pay $145k a month or so ago, but we declined it. The other job we feel that the GC will eventually pay, but they are dragging their feet. We have some other past due invoices that are hurting us.
We have 6 good electricians on staff, but are loaning them out as we don’t have the money for marketing to keep us busy. Fighting to get paid and not having money for marketing have been wearing me down. We have been in business for 9 years. I have always paid my debts and my credit is pretty good.
Now I am in a situation where I have exhausted my resources, financially, physically, and mentally. I have inquired about a loan to help us until we get paid from the job going to trial, but the interest rates are insane. If I took that money to keep us afloat then it might be years before I dug us out of that hole, or at least several months.
I have to look at the reality of the situation. I want to keep my staff working. I want my debts paid and this company to continue on. Our AP and AR are pretty close even without the $225k job in account.
I spoke with a business investor, and he told me that if things were not in the toilet, I could sell my business for $350k - $400k, but with the current situation I could only expect $150k. I am willing to listen to any reasonable offer.
BUSINESS LOCATION
