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Audio Visual, Acoustics and Lighting Designer and Integrator

FEBRUARY 03, 2021

If you’re looking for a company that survived the Coronavirus shut down in Michigan in fine shape, this is it. The company continued to operate successfully in spite of the fact that many of their customers had shut down for two months or more. For the trailing twelve months ending Dec 31, 2020 revenues were more than $3,800,000 and SDE (Sellers Discretionary Earnings) of $794,000, well above the historical average.

Today’s businesses require complex communication and multi-media solutions to reach their intended targets. This 25-year old audio visual (AV), acoustics, lighting designer and integrator provides extensive, comprehensive services to address client needs, including;

Equipment Sales – they are a dealer for most professional brands Rental and Production Services Design and Engineering Services for Sound Systems, Lighting Systems, and Video Systems Acoustic Design and Consulting Installation Training Service and Repair – they are certified to work on many equipment brands

They service the following categories of enterprises;

Education Performing Arts Houses of Worship Corporate

There are more than 3000 customers in the company’s database with approximately one-half of them active during the past 3 years, many of whom are located throughout southeast Michigan. More recently however, a number have been in other areas of Michigan. Customer concentration isn’t a problem, with the top customer accounting for less than 5% of sales. 100% of revenues are generated from the highly desirable “b to b” sales activity. The company has a great repeat and referral base for obtaining jobs. The stellar reputation of the company makes it an easy decision for potential clients to hire the company to do this important work.

This high cash flowing business with 12 highly skilled, loyal, non-union employees operates out of a modern and conveniently located 11,200 square foot facility in a desirable community in suburban Detroit’s Wayne County. The attractive, late model facility is owned by the seller and can be leased under favorable terms or purchased in a separate transaction.

Sales have exceeded $3,850,000 for the 3 1/2-year period from Oct 2017 thru March 2021. For the same 3 1/2-year period through March 2021, the company has recorded a very impressive weighted SDE (seller’s discretionary earnings – historical, normalized cash flow available to pay an owner-operator and service debt) of $665,000 annually. The business is being offered for $1,300,000, an attractive 2.0x of the weighted SDE. The seller is contemplating an asset sale which has the seller retaining 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) and $100,000 (fair market value) of fixed assets and company vehicles. A meaningful seller note will be available to a qualified buyer. Ownership is also willing to stay on for significant post-closing support.

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

Contact information

Steve Kandt
Asking $1,300,000
Cash flow $665,000
Gross $3,850,000
Reference ID SK1020321
Location(s) Metro Detroit
Categories Services B2B