Specialised Electrical Contracting Sales & Service Business For Sale

Business description

This business is an outstanding “ONE STOP” electrical sales and service contracting business. The business has been trading for over twenty-five years. Growth has been solid & consistent and the business has developed an enviable reputation for outstanding service, innovation and product quality.

The business sells a range of electrical products and systems. It also provides electrical repair services and installations to both its commercial and domestic customers. With its shop front retail showroom, domestic customers can select the products and services that are right for them and then have company’s electricians install the equipment.

Some salient points relating to this business are:

* Annual Sales exceed $1M.
* EBITDA of $450,000 projected for 2008
* Strong cash flow
* Excellent brand awareness within industry
* 5 and a half day work week
* Excellent growth potential
* Plant & Equipment value of over $50,000 included in asking price
* Projected ROI 45%+

It is anticipated that the highly qualified and experienced staff would be willing to remain with the business.

This sale represents an outstanding investment opportunity in a business with a solid growth history and strong cash flow.

Included in this offer are the following:

* 100% of the business assets
* A business with a well established and broad commercial and domestic customer base and one that provides a consistent strong cash flow;
* A well-established and well recognised trading name with a reputation for quality and outstanding service;
* Existing stable and well qualified staff;
* Modern and spacious premises
* Excess capacity provided by the current premises that will support substantial business growth;
* Premises that are strategically located on a very high traffic arterial in one of Melbourne’s outer eastern suburbs;
* Excellent customer parking directly in front of the premises;
* The knowledge and trade experience of the current owner who is willing to train the new owner(s) during a suitable transition period if so requested.

For personal reasons, the vendor has now decided to focus his time and energy on other matters, and as no succession plan is in place, this outstanding business is now being offered for sale. A very realistic asking price has been set to effect a quick sale.

This investment opportunity would ideally suit an individual or partners with management skills and an understanding of electrical operational systems. Under the right management, this business could be driven to the next level of growth and efficiency.

Alternately, this investment opportunity would suit an established business looking to expand or diversify its operations and substantially increase cash flow.

Operations:

The current hours of operation of the business are generally:

Monday to Friday 9am – 5:30pm
Saturday: 10am – 2pm

Over the last twenty-five years, a sizeable customer database has been built up; however, this has not been utilized for marketing purposes. Access to the database will be made available during due diligence.

Market / Customer:

The majority of service work and retail sales is sourced from local commercial customers and from residents living in the surrounding area. The secondary market is comprised of large commercial and government clients wanting to install new or improve existing electrical systems.


Services:

The business currently provides a range of services, from general electrical repairs through to complex electrical system performance enhancements and installations.

Some of the services provided include;

* Electrical maintenance and repairs
* Supply and installation of new home, office, shop, shopping centre and factory electrical systems
* Supply and installation of air-conditioning systems
* Supply and installation of heating systems
* Supply and installation of alarm security systems

Products for sale:

Some of the products offered for sale include:

* Alarm security systems
* Ducted vacuum systems
* Nobo heating radiant panels
* Air-conditioning
* Intercom systems
* Isolight downlight protection.

Premises:

The business is strategically located in the central shopping area on a very high traffic arterial. Excellent exposure to passing foot and vehicle traffic is provided.

The current lease on the premises including GST is $26,000 per annum plus outgoings. A two and a half year lease with one five year option is available.

The double story premises includes a spacious and bright product display area, three offices, a rear service and storage area. A staff lunch room and two toilets are also included.


Plant & Equipment:

Plant & Equipment value of $50,000 included in asking price. A comprehensive Plant & Equipment list will be provided during due diligence.

Management / Staff:

The current owner manages the business, provides the strategic direction and oversees large commercial service and network installations.

The business currently employs 6 full time sales and service technicians and 1 part time apprentice technician. The business also has access to over 20 qualified electricians as required for larger jobs.

Transition:

It is anticipated that the existing staff would choose to remain with the business following the sale. The vendor is happy to provide any required training during a suitable transition period.

The vendor believes that this business, under the direction of a motivated and dedicated owner, could grow significantly in sales.

Growth could be driven by initiating press and perhaps radio marketing and by utilizing the existing database for marketing purposes. The vendor anticipates that sales could triple in the short term with the right marketing and promotion of the business.

Property information

Real Estate:

Lease

Lease terms:

1 x 5 year option

Contact the seller