The company is a prominent electrical supply distributor located in California, founded in 1990, with two locations in the local market.
The team, which consists of 11 employees serving hundreds of active customers in the area and surrounding towns, possesses decades of collective electrical sales experience and are the experts on local electrical requirements. The team’s goal is to exceed expectations with honest and reliable service on each and every transaction, while remaining customer-focused and quality-driven.
Since its inception, the company has since grown to serve, not only those with residential lighting needs, but also electrical contractors who remain an integral aspect of the firm’s customer mix. As a major supplier of electrical products and solutions for the construction market, the business has consistently evolved with technological advancements to provide innovative solutions to its clientele. The firm offers a full range of electrical products and services, with wire and pipe generating approximately 30% of the total revenue.
Growth of the company prompted the expansion to a second full-service location in 2013 to provide expanded service to surrounding areas. The firm’s two locations of 9,000 and 10,000 sq. ft., are strategically located, fully stocked, and house modern warehouses and stores with competitive prices. The expansive warehouses and showrooms are filled with thousands of SKU’s and its inventory is valued at approximately $1.5 million.
While experiencing tremendous growth over the past few years, the business has the potential to grow even further by taking advantage of improved marketing strategies and optimizing internet services
- 30 years of experience building solid network connections and stellar reputation in the local market
- One of the most extensive inventories of top-quality and state-of-the-art products valued at $1.5 million.
- Highly trained staff of product specialists that remain committed to clients by providing a customized experience with quality products.
- Quality and professionalism are the cornerstones of the company. The sellers have worked hard to build a reputation based on their dedication to those principles.
- Top notch customer service. The team is well trained and has succeeded in establishing solid relationships with loyal contractors.
- Diverse client base. The company is not overly exposed to any one client, and that should make them a safe bet for an acquirer looking to buy a stable company with a diversified revenue stream.
- History of stable and predictable cash flows with potential for tremendous future growth. 90% of the Company’s revenue comes from repeat customers, primarily contractors.
- Superior gross margins (36% average) compared to industry averages of 17 to 18%.
- $5,878,976 in total revenue (2019), implying a growth rate of 55% over the past 3 years. Gross profit climbed 125% from $1,194,394 in 2017 to $2,693,035 in 2019. For 2020, the Company is on track to post $6.4 million in sales, $2.9 million in gross profit and $1.5 million in net income. 2020 SDCF is estimated to total roughly $1.76 million.
- Potential to see sales explode by implementing improved marketing strategies and optimizing Internet services.
The sellers’ sense is that all of their employees are very dedicated to the business and would be willing to stay on following its sale. However, the new owner will need to find a replacement to handle essential secretarial tasks and bookkeeping, which should not cost the company more than $40,000 in yearly salary.
The company is listed for sale for $5,500,000 plus inventory.
|Locations||2 Locations in California||Terms||Negotiable|
|Years in Business||30 Years- Since August 1st, 1990||Owner||100%|
|Employees||11 employees, including 10 full-time employees||Facilities
– 9000 sq. ft. / $55,956 in yearly rent or ($6.22 per sq.ft.)
– 10000 sq. ft./ Yearly rent is $33,960 or($3.40 persq.ft.)
|Hours||Location 1: Open from 6:00 A.M to 5:00 PM.
Location 2:: Open from 7:00 A.M to 5:00 P.M
|Inventory||Approximately valued at $1.5million; stored in the two business locations.||Reason for Sale||Owners are ready to retire|