EC Business for Sale

[ramsy]

Junk email sent list of businesses for sale, which included this EC shop below:

- For Sale: South Florida’s Electrical Contracting Powerhouse – A 30-Year Legacy of Trust & Excellence; Price: $1.6M (Including AR $300k & FF&E $274k ), Sales: $2.7M, Cash Flow $511k

Without even clicking on this, I suspect scam, misrepresentation, or extraordiany liability.

Does anyone know what FF&E $274k stands for?

Moderators note, suspicious link removed.

 

[ptonsparky]

Are you wanting to move?

 

[ruxton.stanislaw]

Does anyone know what FF&E $274k stands for?

Usually equipment and items in their warehouse or office.

 

[ramsy]

Are you wanting to move?

No. During the great recession our local EC's sold their equipment surplus to scalpers for scrap.

Never seen an EC shop sold for market value, have you?

 

[ramsy]

Usually equipment and items in their warehouse or office.

Thank you for that.

Can't help being skeptical about the AR value. Wonder how much is uncollected delinquents?

 

[ptonsparky]

No. During the great recession our local EC's sold their equipment surplus to scalpers for scrap.

Never seen an EC shop sold for market value, have you?

A trunk slammer that started about the same time I did sold his to large national corp. He had a much better business plan than I did. IIRC he sold for several million. That 1.6 mill mentioned above would be small potatoes.

 

[Birken Vogt]

Thank you for that.

Can't help being skeptical about the AR value. Wonder how much is uncollected delinquents?

Buy it without the AR. Let the prior owners collect their own AR before the date of transition.

 

[ramsy]

`A trunk slammer that started about the same time I did sold his to large national corp. He had a much better business plan than I did. IIRC he sold for several million. That 1.6 mill mentioned above would be small potatoes.

Not likely. Mister Sparky franchise should provide new vehicle fleets & equipment for that price.

There is no book value without a subscription customer base, like pool or pest service.

Proprietor trade shops have variable clients, dependent on bid success, and familiar relationships.

I don't believe brand-name franchises have any use for such shops.

 

[petersonra]

 

[AC\DC]

A trunk slammer that started about the same time I did sold his to large national corp. He had a much better business plan than I did. IIRC he sold for several million. That 1.6 mill mentioned above would be small potatoes.

Please explain if able what his business plan was compared to your? I need improvement, so any advice would help

 

[ptonsparky]

Please explain if able what his business plan was compared to your? I need improvement, so any advice would help

He had one!
IIRC he had over 100 employees at time of sale.

 

[JimsGT]

FF&E means Furniture, Fixtures, and Equipment. So the $274k FF&E for an EC business would be the chairs, desks, copiers, computers, monitors, etc. needed to run the business. FF&E assets tend to have a short life in a depreciation schedule. It would not include parts and equipment inventory as these would be goods that would be sold to customers. A hydraulic pipe bender, a building, or a fleet of vans would be considered PP&E which is Property, Plant, and Equipment. PP&E assets tend to have a longer depreciation schedule.

This deal looks BAD!

 

[AC\DC]

What did he do??? Resi, service work, Commerical.
Funny though!

 

[ptonsparky]

What did he do??? Resi, service work, Commerical.
Funny though!

Commercial. Schools, hospital etc.

 

[AC\DC]

I still have not found how to get in the door to these type of jobs.
All the gc around here use the old guy that chargers have the rate of everyone else.

 

[brantmacga]

Junk email sent list of businesses for sale, which included this EC shop below:

- For Sale: South Florida’s Electrical Contracting Powerhouse – A 30-Year Legacy of Trust & Excellence; Price: $1.6M (Including AR $300k & FF&E $274k ), Sales: $2.7M, Cash Flow $511k

Without even clicking on this, I suspect scam, misrepresentation, or extraordiany liability.

Does anyone know what FF&E $274k stands for?

Moderators note, suspicious link removed.

AR = accounts receivable
FF&E = furniture, fixtures, & equipment. In this case that should primarily be the vehicles, tools, and inventory.

 

[mtnelect]

It's all about eliminating the competition. I get calls from business brokers all the time. Consolidation, the little fish to the big fish.

 

[AC\DC]

Circle of life I guess we try and fight it but in the end we are still just animals.

 

[mtnelect]

It's all about eliminating the competition. I get calls from business brokers all the time. Consolidation, the little fish to the big fish.

Another type of caller is the collection attorney's wanting to know if I have any overdue bills.

 

[James L]

This deal looks BAD!

I think so, too

$2.7m sales would be maybe 8-10 man shop?

@ 10% net would be 6 years to return $1.6m sale price

The $511m cash flow would meet payroll and other expenses for probably 3 months