Audio-Visual/Telecom Company For Sale

This company has been sold.

Founded over 30 years ago,  the Company is a well-established and profitable designer, builder, installer and service provider specializing in audio/video (AV) and sound systems for performing arts centers, and telephone and intercom systems for educational institutions, governmental agencies and businesses primarily located in Michigan.

The owner is nearing retirement age and believes that the best interests of the company are served by joining forces with a strategic buyer that has the financial means and strength of execution to properly utilize his company’s knowledge base, skills, reputation and customer history to effectively maximize the current economic cycle and position the company successfully for the next 30+ years.

Financial Summary:

FY 2014 Sales: $5,200,000

FY 2014 EBITDA: $340,000

FY 2014 SDE: $510,000

Investment Highlights:

• Company Day-To-Day Operations Not Owner Dependent – The owner works approximately 12 hours per week overseeing the business. His involvement is limited to financial decisions, interviewing new employees and dealing with infrequent issues that cannot be solved by multiple layers of staff.
• Design/Engineering Team – The Company employs a deep bench of sales engineers that work with customers from inquiry to project completion. This results in a very high level of customer satisfaction from the first point of interaction and has allowed the Company to spend very little on advertising and marketing as customer referrals and repeat business drive new projects.
• Huge Customer Database for Marketing – If desired by a new owner, the Company has 2,000+ detailed historic customer files that, if prospected, could provide a “profound” amount of new business by simply calling them and discussing their existing system and current needs.
• Surety Bonding – The Company has approved bonds covering jobs up to $2,000,000 and potential work programs of $3,350,000. The Company has a 20+ year relationship with its surety bonding provider.

Growth Opportunities:

• Economic Recovery Drives Demand – According to recent relevant industry research, for the period 2014 to 2019, industry revenue is expected to continue rising at an average annual rate of 4.7% to $165.6 billion, thereby fully recouping its post-recession losses. Specific kinds of electrical installation have grown during the past five years, benefiting companies willing to expand into information technology (IT) systems and modern electrical infrastructure work. Newer buildings require more extensive and complex electricity distribution systems that include voice, data and video cabling and outlets.
• Video Conferencing – The cost of video conferencing systems continues to decline. Combined with an increase in travel costs previously necessary to conduct business and zero transmission costs (Internet-based transmission), the Company is experiencing strong demand from companies with multiple sites and expects this demand to continue.
• Video Broadcast Equipment – Digital video production systems that previously cost $250,000 now cost $20,000 and offer superior quality. Every college, university and K-12 school will have one in the near future.
• Networking with Engineers & Architects –  Because end-use customers for major installations, such as auditorium sound systems, are “one-time” customers for these large projects, the best sources of repeat business for major projects are electrical engineers and architects. Earlier in his career, the owner spent time meeting with architects and making product presentations. This is not being done presently since the Company is at targeted capacity; however networking in this respect has been very effective in the past.
• Digital Signage – This is a new venture for the Company that has thus far gone very well. The Company has digital signage product and expertise in house. Actively marketing this product would yield additional sales.
• Telemarketing Existing Customer Database – As mentioned above, little effort has ever been made to remain in active contact with previous customers. As demand increases and the price of technology decreases, this database is ripe for new opportunities.

Please inquire below for access to a complete Offering Memorandum that contains the following:

• Company History/Overview
• Information about Customers
• Information about Service Offerings
• Management Team & Personnel
• Technology & Software
• Facilities
• Equipment List
• Industry Overview
• Detailed Financial Addendum

Interested parties must demonstrate proof of financial capability. Inquire today about this audio video integration company for sale!