Cabling Contractor & Communications Equipment

Description:
The opportunity consists of two entities: a cabling contractor and a communications equipment and service provider. Company 1 is a cabling contractor with a focus on voice, data, video, and fiber optic cables. Company 2 sells, designs, and provides installation services for various communications equipment. Ownership will consider the sale of each entity individually or as a collective sale.

Key Aspects:
• Company 1 and Company 2 have average gross profit (GP) margins of 19.9% and 22.4%, respectively, from 2021-2024.
• Management notes that the Company has recurring revenue contracts and a customer repeat purchase rate of 92.1% in 2024.
• Company 2 has exclusive distributor agreements in place for products sold to the educational and commercial markets.
• Company 1 and Company 2 are licensed and certified to work on public projects, schools, and low-voltage work.
• Company 1 holds a Master Service Agreement (MSA) with its largest customer.

Opportunities:
• Geographic expansion to reach new markets.
• Promote new products for educational markets and increase work in
audio-visual technology.
• Obtain licensure for burglar alarm and security systems installation in
current markets.
• According to management, Company 1 will be a part of an upcoming project with a total contract value of $7 million, which is expected to be completed in late 2027.

Headquartered:
• Northeast, US

Current Markets:
• The Company serves the educational, commercial, industrial, and healthcare industries in the Northeast, US.

Real Estate:
• The Company operates from a 14,300 sq. ft. facility leased from an unrelated third party. The business is relocatable.

Shareholder Ownership:
• Company 1 is owned by two shareholders, and Company 2 is owned by four shareholders, two of whom are also shareholders of Company 1. the Owners are willing to remain with the Company for a predetermined period to facilitate a smooth transition to new ownership.