Description of the business for sale
Company is a commercial contractor providing electrical, telecommunications, power systems, and disaster recovery services in Texas and selected markets throughout the country. Company's revenue is primarily generated in telecommunications services which accounted for 50% of sales in 2006. Electrical work and power systems were responsible for 25% and 10% of sales respectively. Disaster recovery revenue is highly volatile and depends on weather related and other disasters that require major reconstruction projects. In the wake of Hurricane Katrina in 2005, disaster recovery revenue accounted for 40% of sales, which was greater than any of the Company s other revenue mix components. In 2006, amid the lack of major disasters in the South, disaster recovery accounted for only 5% of sales. Telecommunications services on the other hand were responsible for 50% of sales, up from 30% in 2005. Owners have recently opened an office in the Houston area and expect to significantly expand thier reach in 2008.
ADDITIONAL FINANCIAL INFORMATION:
REASONS FOR SELLING: Exploring exit and expansion options.
EMPLOYEES: Full-time / Part-time: 63 full-time.
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Support / Training provided by seller
Owners will remain through a reasonable transition.
COMPETITION: Telecom installation, power systems, and maintenance services, are typically less competitive than commercial electrical work as customers typically weigh factors other than price in selecting their service provider, particularly for critical work in operational sites, such as specialized capabilities, reputation for quality, and long-term relationships. A well diversified contractor, like this one, has a competitive advantage in being better suited to meet the varied needs of telecom customers.
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Description of the facilities
Company operates out of an office and warehouse facility totaling approximately 21,000 square feet. The facility features a 6,900 square foot office and a 14,200 square foot warehouse.
GROWTH: Economically, this company represents a sound investment opportunity as a stand alone purchase, however, buyers that can bring additional operating capital or complimentary resources will be able to add substantial value to this attractive Company. Significant growth opportunities lie in increased power generator sales, service and rentals as well as UPS sales and service for commercial and government entities as well as expansion with existing customers in new geographic markets.
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