Electrical Engineering Company, 164% Revenue Growth

Quick Sale Required The company is a licensed electrical contractor serving industrial clients across the State. It provides consulting, procurement, construction, and disposal services for power generation. Company revenue was $3.3M in 2021 and $8.7M in 2022, growing at 164% and operating at a gross margin of ~57%. With a $10M to $20M spending gap, revenue is poised to grow in the foreseeable future given the existing minority status as well as the diversity program the company has been set up with. The company prides itself on quality and safety, evident in its safety rating of ‘A’ which is a requirement to perform work at power plants. This, in addition to its minority status, sets it apart from its competitors and as such, for various federal projects, the Company is prioritized for projects. Team: The owner is supported by 2 operational managers and a multi-disciplined team that has worked for utilities in new construction, maintenance, design, and engineering roles throughout their careers. Unionized resources are utilized for operations to ensure the best qualified operational staff. Services and Clients: The Company serves client accounts with a national and federal focus with sustainable operations. Services at power plants include electrical and instrumentation contracting, HVAC, and bus duct installation among other services. Transition Support: The current owner is willing to partake in a transition process that will ensure minimal impact on business operations. Reason for Selling: The owner wants to focus on her personal life and medical practice. Competitive Landscape: Entry to the market as a vendor in this space is difficult because of the specialized work performed. The company is a niche operator with a range of services and fixed clients. The barrier to entry to play in the market is low; however, players will benefit from certification, veteran-owned status, and a large bonding capacity to improve scale. Growth Opportunities: The market is fragmented, and this presents an opportunity to acquire players who have secured federal contracts to expand and penetrate other states. Recycling lithium at the utility companies’ battery banks after dismantling batteries at solar plants will increase revenue. In addition to this, focusing more on the specialized service of maintaining wind turbines is also a means to revenue growth.