Electrical Engineering Companies
Q: 12 years old Growing Great repeat customer base Excellent reputation $300,000 + Sales per year $150,000 approximate owner benefit $325,000 asking price - high return on investment, great income for Professional Engineer
A: -Who are you kidding? $300K in sales per year can't possibly generate $150K of profit. I suggest you go back and look at the P&L statement again. -At the risk sounding overconfident, the numbers are good. YOU should go back and do some arithmetic. The figures are typical for service corporations with little if any overhead. The profit is because he bills at a rate approximately double his direct cost, with not much else to detract. Of course all figures are PRE TAX, which may or may not matter to a buyer, depending on his particular situation. I am a licensed real estate broker, have bought and sold businesses for over fifteen years, and our figures are accurate.