Profitable and Diversified Utility Contractor for Sale

The Company is a well-established and turnkey electrical and utility contractor with a diversified range of offerings including, but not limited to, commercial and industrial construction, outdoor traffic signal and lighting, and underground electrical work. The Company has forged deep relationships with major state government, commercial, and municipality customers who regularly award the Company new projects. Due to shallow competition, it is estimated that the Company wins 90.0% of bids placed. The Company has already secured over $10M in projects for 2021 and over $5M for 2022.

The Company features a substantial and specialized equipment base. All equipment is carefully maintained and kept in optimal shape.

The experienced staff in place bolsters the Company’s strong reputation. The Company’s team consists of both young and experienced employees, a mixture that lays the foundation for success from a personnel standpoint. The young apprentices bring energy and are able to learn from experienced industry experts who, in some cases, have been with the Company for 30-plus years. In addition, the team in place is dedicated to the Company’s success, as its low turnover and high employee morale demonstrate.

The Business was founded by the current Owner’s family decades ago. Ownership is seeking to exit the Business for a well-deserved retirement after operating the Company for many years. However, the Owner is committed to the success and continuity of the Business and is willing to provide reasonable transitionary assistance.

Buyers will be required to have a minimum of $750,000 in available liquid capital, and preferably industry experience, to receive information about the Company.

The Company has built a considerable backlog, having already won over $10M worth of jobs for 2021 and over $5M for 2022 (as of May 2021).

Additional Information

Real Estate: The real estate is owned separately through a holding entity. The real estate’s value is estimated at $1,200,000. Current Ownership is flexible regarding the sale or lease of the real estate.

Total Building Size: 28,500 square feet.

Facilities: Total facilities include approximately 28,500 square feet. The facilities feature 3,500 square feet of office space, of which 1,500 square feet is leased out to a separate entity. The warehouse contains 20,000 square feet of space. 8,500 square feet of warehouse space is leased to a separate entity. A separate cold storage warehouse building consists of 5,000 square feet.

Seller Financing Available: Yes

Seller Note: Limited Seller-Financing May Be Available for Qualified Buyers

Number of Employees: 20

Year Established: ~1910

Support/Training: Current Ownership is committed to the success of new ownership and is willing to provide reasonable and customary transitionary assistance. The Company is family operated.

Reasons for Selling: The Owner is looking to exit the Business to enjoy a well-deserved retirement after operating the Company for many years.

Investment Highlights

(1) Strong Government, Commercial, and Municipality Relationships: The Company manages longstanding relationships with state government, city government, commercial, and municipality customers. As a result, the Company has become a trusted contractor for these customers who regularly rely upon the Company for projects both large ($1,000,000+) and small ($5,000).

(2) Substantial Equipment Base: The Company features a complete equipment base with 30+ vehicles, 20+ trailers, and a multitude of specialized equipment. Vehicles are kept up to date with regular maintenance and cleaning. New vehicles are continually purchased and cycled into service to ensure all active equipment remains in top shape.

(3) Considerable Backlog: The Company has built a considerable backlog, having already won over $10M worth of jobs for 2021 and over $5M for 2022 (as of May 2021).

(4) Competitive Differentiation: The niche of utility and electrical contracting that the Company focuses on features low competition. There are typically 0-3 other competitive bids on the table alongside the Company, depending on project type. The Company estimates that they win 90.0% of all projects they bid on. Additionally, unlike many of the Company’s competitors, the Company is not union.

(5) Longstanding Reputation and Experienced Staff: Many years of successful operation helped the Company build relationships with partners around the community. The Company serves longstanding relationships with customers such as the State of Michigan and municipalities that require the highest quality work. The Company’s staff is a mix of experienced employees and young apprentices, a mixture that lays the foundation for success from a personnel standpoint.

Growth Opportunities

(1) Expand Workforce: There are always additional projects the Company could bid on; however, the Company is nearing capacity with the current workforce. Increasing the Company’s output capacity through an expanded workforce could allow them to bid on additional available projects.

(2) Geographic Growth: The Company presently operates only within Michigan. Michigan poses a substantial opportunity for growth on its own. However, there is ample opportunity to expand into neighboring states such as Indiana, Ohio, and Wisconsin. The Company could expand geographically through sales and marketing efforts or by acquiring companies located in the targeted states. The Company could also win additional work within Michigan. Current Ownership estimates that taking market share from local competitors in the state could add $3 million to $4 million in revenue.

(3) Electrical Infrastructure Opportunities: As electrical infrastructure expands and becomes increasingly complex, the need for contractors willing to grow into new key industry products and services becomes evident. For example, installing and constructing infrastructure for automobile charging stations and solar-powered electrical grids are two prominent areas where ample opportunity exists to increase sales via new markets.

(4) Website and Marketing Improvements: The Company’s website provides visitors with solid overviews regarding the Company’s divisions, services, history, previous jobs, and more. However, there is room to improve the website so that the Company’s online presence is better positioned. Areas of improvement include design and technical updates, usability improvements (for example, mobile optimization), Search Engine Optimization (SEO), and a brand refresh.

The BEST way to receive confidential information about this opportunity is to fill out the form below.

Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this Profitable and Diversified Utility Contractor for sale!

 

Financial Performance

  • Year End Dec 2020 Revenue

    $10,478,127

  • Year End Dec 2020 Adjusted EBITDA

    $1,366,072

  • Equipment Value

    $3,202,310

  • Real Estate Value

    $1,200,000





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Calder Capital, LLC