General & Electric Contractor, $10m Projects Pending Award, Open to Earnout

$1,900,000 for 49% of the Company. The company is a licensed general and electrical contractor serving commercial and industrial clients across the USA and provides the following: (1) Contracting services include electrical power, lighting, and smart building systems. (2) Distribution of materials and equipment used in construction projects. The Company revenue was $1.9M in 2021, growing at 152.9% CAGR between 2019 and 2021, operating at a gross margin of ~60%. In 2022, the revenue was $8.4M through November. Revenues are forecasted to grow at ~130% CAGR between###-###-#### based on the current and known pipeline of work of more than $10m (most important and with the highest chance of award - >80%) In addition to the asking price, the owner requires an earnout from the value of the current pipeline of large contracts (that are awarded and executed by the company after the sale) and is open to negotiation. Team: The company is operated by the founder and owner who has certifications as an Honorably Discharged US Navy Service, Disabled War Veteran, Minority, and small business – and as such, for various federal projects, the Company gets priority when it comes to the bidding process for projects. It has an 8A Certification pending. The owner is supported by 12 electricians and strategic sub-contractors (dependent on the contracts). In addition, the company has Admin, HR, Finance, and Purchasing agents supporting its operations. Services and Clients: The Company serves client accounts with a national and federal focus with sustainable operations. Contracting services include: • Unlimited General & Electrical contracting – including construction. • Providing switchgear and generator replacements and upgrades. • Regional field employee and supervision for installation work Materials and Equipment Distribution include: • Distributor of construction and miscellaneous commodity materials. • Siemens smart infrastructure (OEM) switchgear manufactured and furnished to clients. Transition Support: The current owner is willing to partake in a transition process that will ensure minimal impact on business operations and the ability to focus on the top line. Reason for Selling: The owner wants to retire for health reasons and is open to negotiating a good deal with the right buyer. Competitive Landscape: The general and electrical contracting market can be divided into three – market leaders, local operators, and niche operators. The heavily fragmented market has many local and niche players operating across the USA. The company is a market leader with national reach and a range of services. The barrier to entry to play in the market is low; however, players will benefit from certification across states, veteran-owned status, and large bonding capacity to reach scale. Growth Opportunities: The market is fragmented, with independent players operating locally or in the state. This presents an opportunity for the company to acquire players who have secured federal contracts to expand inorganically and penetrate other states.