Listing Details return to results >

#1118 Full-Service Provider of Engineered, Electronic Systems
Asking Price:
Down Payment:
Adj. Profit:
Adj. Profit Type:
Seller's Discretionary Earnings  

FULL-SERVICE PROVIDER OF ENGINEERED, ELECTRONIC SYSTEMS - This B2B service company installs and services fire alarm, security alarm, and communication systems.  It is well known in the industry for providing best in class design, engineering, installation, and monitoring services throughout the state of Colorado.  Thriving since its inception over 30 years ago, the company has prized relationships with many large organizations that rely on its expertise in new installations and ongoing service.  Real estate, with an estimated value of $435,000 (subject to appraisal), available to purchase with the business.  Sales through September of 2018 up 8.6% over the same period in 2017.  Contact Mem GarrisonBUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.