Electrical Contactor Distributor And Manufacturer For Sale

Business description

Combined Sales 2005 $27,000.000 with $5.7 million dollar EBIDTA Combined Sales 2006 $42,000.000 with $5.5 million dollar EBIDTA Doing business in Southern Nevada, Reno-Tahoe, Central California up throughout Northern California. Southern Nevada Market Single Family and Multi Family Residential construction doing standard and structural wiring for approximately 10% of the market or 160 homes per month. Reno Tahoe Market Single Family and Multi Family Residential construction doing standard, structural wiring and Fixture sales for approximately 20% of the market or 100 homes per month. California Market Single Family and Multi Family Residential construction doing Standard, Structural wiring, light fixture sales, and undergrounds for approximately 15% of the market or 160 per month. Because of the change in Insurance policies in each market in 2006 all divisions were able to add Multi Family Residential construction and expand their market penetration and profits. New inventory control procedures have been put in place in 2007 for the Southern Nevada Market and has greatly improved profit margins. The controls are ongoing and will be rolled out to all markets by January 1st, 2008. The new procedure allows them to take their estimates and generate estimated material list. The estimated material list (usually high) is transformed after model stage into actual material list and entered into the Master Builder computer program. During this stage they also fix their actual labor cost by using task specific job costing. Their additional over is tracked monthly and allocated into the jobs based on project sales for each market region per month. By adding these steps and converting over to Market Builder the company can now track profit by lot basis giving them much more control on Margins and Shrinkage. California has moved into a 20,000 sqft building with a 10,000 sqft mezzanine on 2 ½ acres of land. This has allowed the company to centralize the Accounting, Purchasing Estimating (California and Reno Tahoe) and payroll will be done from there as of January 1st, 2008. The new California location is company owned and appraised at $5.2 million as is the Las Vegas location witch is 10,000 sqft and appraised at $2.1 million dollars. The Reno building is leased and has just recently move from a 1,00sqft building into a 5,000 sqft facility. Master Builder has been implemented in the Northern Nevada market as of March 2007 and will be completely up and running in all Markets by January 1st 2008. Having Master Builder in place along with doing monthly estimated inventories and quarterly fiscal inventories has greatly improved profit margins. The estimating has been left in the Southern Nevada Market to allow them to be able to fine tune the additional controls into the inventory control procedure they have put in place. Once the system has been finalized it is projected that the Estimating for their market will also move to Sacramento. Doing this will also increase overall margins and control. Previously all Markets were billing customers on a 60/40 base; the company is in the process of going to an 80/20 billing structure. The new payment is more in line with how the actual expenditures for each division are realized. Due to the Market slow down in California and Southern Nevada it has allowed both divisions, but primarily California market to expand their customer list. California, who did majority of their work with KB Homes has diversified their customer base and now is doing business with over 10 builders and has expanded its market down as far Fresno, and by 2008 it will be doing business down to Bakersfield, Ca.

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