Established Security And Home Automation Company

Turnkey Home Automation & Security Contracting Business - $944,650 Seller Earn

For over 30 years, this home automation & security business has delivered comprehensive services that include home automation (25%), lighting control (25%), audio/video (25%), security (20%) and recurring monitoring
service (5%) solutions for estates, developers and residential clients.

2023 gross sales amounted to $4.3 Million, resulting in net seller earnings of $944,560 (SDE).

2022 gross sales amounted to $4.4 Million.

Most recent 3 complete years weighted average (1-4-9) net seller earnings is $884,243 (SDE).

Most recent 3 complete years weighted average (1-4-9) gross sales is $4,258,944.

This business is driven by good customer service. They are highly selective when accepting new clients and projects,
which results in refusals of new opportunities. Typical project sizes are around $25,000 and average a couple of months to complete. There are a few long-term multi-year projects above 10% of sales (13%, 14% and 21% respectively).

Revenue is primarily generated through client referrals and word-of-mouth. Builders, existing customers, and new clients typically reach out directly to the main office for business inquiries.

The seller believes that a highly qualified buyer could further stimulate growth by introducing digital and direct marketing initiatives, encouraging more customers to sign up for monitoring contracts, and strategically hiring top-notch personnel.

The Seller will consider serving as the qualifying individual for licensing (CSLB: Electrical C-7, C-10 & BSIS: AQM/ACO
on an agreed to interim basis, until the qualified buyer acquires any necessary or missing licenses for the business, with terms and any paid consulting agreements to be mutually agreed upon. There may be some other employees with the requisite experience hours for corporate licensing or the buyer may want to hire licensees to support requirements.

If the buyer has all these licenses, an asset sale structure may be possible, otherwise a stock sale structure may be required, as it can take several months for government agencies to approve all the specialty licensing for new corporations.

The $2.75 Million purchase price includes $100,000 of net current working capital. Work in progress (WIP) for partial or completed jobs will be determined and credited/debited appropriately, for WIP status at the time of closing.

SBA Pre-approved for support. SBA may require 20% equity downpayment.

Broker-Associate: John Lamay, CBB, CABB, IBBA
Certified Business Broker DRE Lic. # 02021491
Agent for Coast Business Brokerage DRE Lic. # 01841628

Information, Books and Records: All books and records are provided by Coast Business Brokerage (Coast) is without audit and Coast makes no representation as to the accuracy or reliability of said information. Any buyer or seller should perform separate due diligence and verification to their satisfaction. Coast and their brokers or agents are not licensed or qualified to provide legal, accounting financial planning or tax advice. Seller and Buyer are advised to consult with independent licensed attorneys, accountants, financial planners and other competent professionals with respect to all aspects of entering into and revising and completing all contracts, agreements, disclosures and transactions.

Total Sales: $4,258,944

Cash Flow: $884,243

Year Established: 1993

Employees: 10

Facilities Information:

Facility: Approx. 1,800 sq. ft (approx 50% office, 50% warehouse). $4,300/Mo. (2024), 5-yr option available. Transferring Assets: 7 Vehicles (Pickups & Vans) and Required Tools Ladders, Drills, Small Hand Tools, Cords 10 Employees (includes 2 owners)

Reason For Sale:

Retirement

Training & Support:

Included Training: 2 weeks Paid Consulting TBD per mutual agreement to facilitate successful transition. Buyer (or employee) will need the following licenses: (State Contractor License CSLB Type: C-7, C-10) and (California Alarm Qual. Mgr License Required : #1233 and ACO). Seller may consider staying as interim Qualifying Individual/Mgr, Terms TBD.

Competition:

The company refuses some new clients and projects due to current resource levels. Owners are comfortable with the current business levels. Currently focused on residential markets, providing a wide range of turn-key services.

Potential Growth:

Seller feels that a well-qualified, experienced buyer should consider facilitating additional growth by the implementation of digital and direct marketing programs, driving to get each customer signed up for recurring service and monitoring contracts, and by the skilled hiring of high-quality great fit people.

Financing/Terms:

SBA Pre-approved - May require up to 20% equity downpayment.