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Sold – Commercial Low Voltage Infrastructure Construction

This company provides infrastructure design and construction services to enable low voltage (LV) systems in large commercial construction and renovation projects on the front range of Colorado. Low voltage systems are critical components commonly used in condominium communities, apartments, hotels, senior living facilities and office buildings. These systems include commercial and industrial low voltage wiring, structured cabling, voice, video, data, WIFI, security systems, access control (locks etc), commercial audio/visual, theater, fire alarm, CCTV (closed circuit TV), and emergency radio (antennas). The business’s services span the entire life cycle of low voltage infrastructure requirements supporting General Contractors and Architects from initial concept, system design & layout and construction implementation. Later life cycle client offerings include technical support and service contracting.

The business has experienced strong growth over many years driven by key employees and leading edge technology. This year they expect to top $1M in cashflow. The construction side of the business has $3M in unbilled work in progress today and another $2.6M out in bids. The consulting side of the business is growing even quicker and the company started doing business in the service segment this year.

Facts
Started in 2001
17 full time employees, 1 part time, 4 contract

FacilitiesBusiness leases a small amount of office space.

Financials
Asking Price: $2,500,000
Included in the Asking Price: FFE worth $80,000
Revenue: $2,250,000
Cash Flow: $830,000

Market Outlook
Competition:
This business competes to some extent with other regional LV construction companies but is known as the go-to LV infrastructure provider in the region.
Growth and Expansion: The company has experienced strong growth over the past few years. It does not advertise, and all business comes via repeat or referral. Business has been running at capacity recently, and the company’s pipeline is perpetually full for two years. The regional industry could support a great deal more business, and that trend is expected to continue. With a small amount of marketing and advertising and additional employees, they could expand revenue and cashflow considerably.

About the Sale
The owner wants the legacy the business he created to continue, and is seeking a buyer who can help propel this company to the next level. He is willing to stay on in a consulting capacity for the right buyer – for as long as that reasonably takes. Key employee who runs most of the business will stay on and willing to purchase a minority equity stake (10-15%) for cash at closing.

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