The company is a provider of telecommunications and data center infrastructure services, specializing in AC/DC power, data cabling, equipment installation, fiber splicing, and power, data, and fiber design. Founded more than 20 years ago, the company has established a strong reputation for quality work and customer service, leading to long-term relationships with key players in the telecommunications and data center industries.
Services:
The company boasts 20+ year relationships with key clients like Verizon and Equinix, primarily in the NJ/NYC area and provides a comprehensive suite of services, including:
All services are within 5% of each other in terms of margin contribution, and the revenue generation is balanced across the service offerings. The company primarily operates on a re-occurring project basis, rather than long-term maintenance contracts.
Reason for Sale:
The owner is selling the business due to his planned retirement.
Operations and Team:
Currently, the company operates with a lean team of 1-4 employees, depending on project needs. Historically, the company has scaled up to 26 employees for larger projects, averaging 6-8 employees on a steady basis. The owner is actively involved in the day-to-day operations and would need to be replaced by an experienced incumbent.
Facilities:
The company transitioned from a warehouse/office space to land storage with trailers in anticipation of the owner’s retirement and currently operates from a 2,400 sq ft facility with an open-ended lease. Future growth would require new warehouse and office space.
Competition:
This business differentiates itself through its commitment to customer satisfaction, long hours, meeting deliverables, and strong relationships. It emphasizes understanding customer needs and aligning its interests with the customer’s, leading to high-quality work and a high rate of proposal wins (85-90%).
Pricing is generally 5-10% lower than competitors but can fluctuate while maintaining a high win rate due to its stellar reputation.
Potential Growth:
Several growth opportunities have been identified:
