Commercial A/V & Acoustic Systems Integrator - Sale Pending

FEBRUARY 16, 2022

It has been a great 28 (+) year run for the two founder-owner-sellers of their successful, cash flowing, niche, B to B business offering design, sales and engineering services for sound, video and lighting systems. Now, with retirement in their plans, the sellers look forward to transitioning their business to only its second owner-operator, then retiring after providing the buyer a generous period of transition training.

Located in a desirable Detroit suburb, the business occupies an attractive, late model 11,200 square foot building owned by the sellers. The real estate is available for a long-term lease under favorable terms or it can be purchased in a separate transaction.

The business has a number of complimentary profit centers which are nicely managed by a staff of 12 long-time, loyal, highly skilled, non-union employees with special talents in commercial AV (audio-visual), lighting design, acoustics, and integration for the company’s 3000 (+) database of clients, 50% of whom have been active within the past three years and for which there is no customer concentration. Clients come from a 100 (+) mile radius, and the company’s stellar reputation results in a continuing and growing referral network.

A representative list of services include: • Equipment sales and rentals (the company is a dealer for most professional lines) • Service and Repair (the company is certified to work on many equipment brands) • Training and Installation • Acoustic Design and Consulting • Design and Engineering Services for Sound, Lighting, and Video Systems

Typical clients include: • Education Facilities of All Kinds • Performing Arts Facilities • Houses of Worship • Corporate Offices • Hospitality Auditoriums

Now, let’s look at the numbers: For the five-year period (ending 9/30/22), the business has had average annual revenues of almost $4.0 million with SDE (seller’s discretionary earnings – the historic cash flow available to pay an owner-operator and service debt) averaging an impressive $660,000 annually over the same five-year period. The listing price for the business is $1,490,000 based on an attractive 2.25x multiple of SDE.

The seller is contemplating an asset sale in which the seller retains cash and A/R, while retiring all liabilities. The listing price includes:

1. $200,000 (market value) of equipment rented regularly to customers
2. Approximately $75,000 of physical inventory (cost basis – for resale)
3. $100,000 (fair market value) of fixed assets and company vehicles.
4. A meaningful (six figure) seller note available for a qualified buyer.

For more information on this outstanding business opportunity, please contact Steve Kandt ([email protected]).