Specialty Electrical Contractor
Listing #: 71437
Asking Price: $995,000
Owner Benefit: $484,211
This firm does electrical lighting installation and infrastructure work. They install and service custom lampposts, mailboxes and other items found in new home communities and other commercial development projects. In addition, it also manufactures (using parts from 3rd party aluminum casting firms) custom lampposts and mailboxes, sells replacement lampposts and mailboxes or repairs damaged existing equipment in many of the communities where they originally provided those items new.
It has been in operation since 1992, resulting in thousands of unique, custom lampposts and mailboxes onsite in the many developments where their products have been sold. When one is damaged, the firm is the only with the forms needed to make repairs because the products are so unique. The current owner has had the business for 9 years.
At this point, a great deal of the business revenue comes from providing electrical infrastructure in new home community development projects but also through the maintenance and repair of existing products in the field and replacing products that are damaged beyond repair. The customer base is builder/developers who are developing a new residential community or commercial project as well as the various HOA/POA's where the firm has supplied products in the past. Also, Community Association Management firms who are managing the associations where product has been supplied in the past as well as some municipal governments.
There is a significant level of exclusivity with this business due to the unique nature of the product. If a light pole is damaged it must be repaired, and if this firm provided the pole, they are the fastest path to a repair or replacement of the fixture. Because this firm can be a "one-stop shop" for its customer base they are the preferred vendor for Associations and Association Managers who just want their "problem" handled.
The firm has provided products in approximately 250 new home communities that were developed over the past 25 or 30 years, which makes for strong residual business. The have ongoing relationships with are developers who like the "turn-key" capabilities of the firm regarding community street lighting. Also, there are ongoing service contracts in place for the street lighting in around 10 associations and there is one contract with a municipality.
There is a great deal of upside for this business. Currently, the business is marketed only by Word-of-Mouth. The firm has never had a website and the owner feels that a dynamic website would likely increase sales substantially. In addition to no online presence, the owner does no advertising and turns away a lot of business. There are 2 FT and 1 PT employees.
The business is currently managed from the owner's home, but they do own a very well located one-acre storage lot where work is done, valued at $300,000 but it is not included in the price but could be leased for $2,000/month. Per the owner, the lot has been improved for development of a 3,000 s.f. warehouse building.
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