OFF-MARKET ‘Q2 2020
Get Amped! Electrical Contracting Co. Wired for Success!
Upland, CA (San Bernardino County)(Relocatable)
Zip Code: 91784
This generational acquisition opportunity, managed by its original principle continues to create a growing revenue stream and maintain a stellar reputation in the market. Company is usually hired as subcontractors for general contractors who lead new construction for the development of commercial properties that big-brand retail and restaurant establishments like Applebee’s, Victoria’s Secret, Panda Express, and more.
The owner services electrical contracts with a small but efficient crew and is focused on high-quality work. This opportunity is perfect for a strategic acquirer or someone that wants a reasonable entry-point & turnkey business in the electrical contracting field. Includes a fleet of trucks (3) and miscellaneous tools and equipment in an all-inclusive package.
NDA is required for the first round package on file with ProNova Partners.
Electrical contractors worldwide depend on construction activity as well as demand for renovation. The global volume of construction is forecast to grow by 85% to $15.5 trillion by 2030, according to a report by Global Construction Perspectives and Oxford Economics sponsored by PwC.
The largest construction markets — the US, India, and China — are expected to account for 57% of global growth. Emerging markets such as India are growing quickly as a result of increased urbanization, rising populations, and the expanding middle class. Construction growth in China is expected to slow in sectors such as housing and shift to health care, education, social infrastructure, and retail.
The US electrical contracting industry includes more than 70,000 establishments (single location companies and units of multi-location companies) with combined annual revenue of about $150 billion. Competitive Landscape Most electrical work is driven by new residential and nonresidential construction activity.
The operation, maintenance, and repair work (sometimes called “facilities services”) are less sensitive to real estate cycles. Building managers typically prefer to deal with contractors who can provide service in multiple markets. Small companies can compete in local markets through service, word-of-mouth referrals, and relationships with general construction contractors. The industry is highly fragmented: about 80% of electrical contracting firms have fewer than 10 employees.
The value of US nonresidential construction spending, a demand indicator for electrical contractors, rose 4.9% year-to-date in November 2018 compared to the same period in 2017.
Electrical contracting involves installing and maintaining electrical power systems, conduits, cables, control panels, generators, lighting systems, video and data systems, and low voltage systems (fire alarms). The three major categories of contracting work are new construction; electrical systems replacement in existing buildings (“retrofitting”); and maintenance, repair, and replacement (MRR) work. Electrical contractors are often subcontractors on large projects.
In addition to estimating costs for contracts, operations involve reviewing engineers’ plans and specifications, scheduling crews, managing inventory, and scheduling equipment to ensure that a contract is fulfilled according to schedule.
Electricians must be able to read blueprints or technical diagrams to install wiring, control, and lighting systems. Besides common electrical systems, commercial projects often include fiber optic installation. Residential and commercial projects may include solar installations. Other green projects include wind energy, net metering, and cogeneration.
Commercial projects account for about 30% of the market, institutional work (educational, health care, public safety, and religious buildings) accounts for about 20% and residential and industrial each account for about 15%. Other segments include utility work and transportation/lighting.
Electrical contractors that offer design/build services may use building information modeling (BIM) in the design phase of construction. Through BIM, contractors can create computer simulations and virtually design building systems before construction begins.
Heavy energy demand in places such as Europe and the US has prompted the development of smart grid systems. A smart grid combines analog and digital information to improve energy efficiency and create a more reliable power delivery infrastructure. Electrical contractors can help reduce their customers’ energy costs by designing and installing new systems compatible with smart grid technology.
Electrical contractors increasingly use smartphones, tablets, and other mobile devices to be more productive and to stay connected with employees and clients while in the field. Some also use mobile devices to accept payments, fill out work orders or other forms, and order equipment and supplies.
OFF-MARKET – Get Amped! Electrical Contracting Co. Wired for Success!
