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    0 Replies Latest reply on Sep 30, 2008 5:26 PM by M_A.expert

    CT based company for sale ($6.4M in revenue & $670K profit)

    M_A.expert Wayfarer

      Key Facts:

       


      Industry: Home Systems Integrator

       

      Revenues: $6.4 million

       

      Discretionary Earnings: approx. $670,000 (plus $120,000 in owner's benefits)

       

      Contracted Backlog: approx. $6 million

       

      Recent Profit Trend: Q2 2008 earnings are above Q2 2007

       

      Asking Price: $3.5 million (including security monitoring contracts independently valued at minimum $750,000)

       

      *_The Company

      As a "Systems Integrator", The Company provides a "one-stop-shopping" business model for new home builders and remodelers. They install central vacuum systems, security systems (and monitoring), sound systems, structured wiring, shelving, shower doors, mirrors, and bath accessories. Residential and commercial security systems are a growth focus for 2008 and beyond. Home Systems Integrators have a unique position within the construction industry since their product offerings tend to be more profitable and recession resistant than the average. With the increased demand for sophisticated wiring of residential buildings to meet the requirements of 21st century living, Home Systems Integrators are expected to enjoy healthy growth rates for years to come.

      During the last fifteen years, The Company has grown from $500,000 to over $6 million in annual revenues. The Company's profitability has been able to withstand the recent crisis of the US real estate market: net profits adjusted for discretionary earnings in 2007 were only 1.2% below 2006 and an impressive 38.7% above 2005 adjusted profits (year in which the real estate market peaked). 2007 discretionary earnings were at about 10% of revenues. The Company's contracted backlog as of September 2008 is at about $6 million and profitability for Q2 2008 was up versus Q2 2007 with a positive month to month trend. The Company has a state-of-the-art website with online shop that, after undergoing search engine optimization efforts, was able to grow its amount of unique visitors from about 3000 in Q1 2008 to over 4,100 in Q2 2008.

      The Company has one location in New England with 35 employees serving over 2,500 builders and 18,000 total customers in Connecticut, Westchester County, NY, and western Massachusetts. The office & warehouse facilities are leased and The Company utilizes a new computerized dispatch system that provides a lower cost of operation, more accuracy, and greater efficiencies in the customer service areas.

      The Company is the seventh largest dealer in the Beam dealer network and the largest in New England. The Company is also a member of the G. E. Home Technologies network and the only New England Company selected to join the network. The top 10 customers only represent 14.6% of total sales, and the top ten vendors represent only 54.4% of the Cost of Sales. The Company has a qualified management team in place, certified employees for installations, an employee manual, benefits coverage, and insurance coverage. The Company is non union.

      Their competition consists of "mom and pop" operations with a limited product and services range. The Company is the largest privately held one of its kind in New England.

      The asking price of $3.5 million includes monitoring contracts currently valued at minimum $0.75 million (there is an open market for security monitoring contracts in the US). The asking price will be adjusted for the current value of the monitoring contracts on the day of closing. The Company is positioned to double in annual revenues in the next five years with new ownership in place.

      The Owner:

      The Owner of the Company controls 100% of the voting stock. He is flexible when it comes to transitioning with a new owner, leasing, or selling, the facility which he owns, and continuing his excellent industry relationships.

      Please contact Anja Bernier at abernier@efficientevolutions.com or 617 795 2610 if you are interested in finding out more about this company. You can also contact us by replying to this post or via our website www.efficientevolutions.com