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SECURITY COMPANY FOR SALE > sss0330011

Description of Security Company For Sale

This company markets electronic security equipment and provides installation and service of the following: telephone entry units, cameras, access control equipment, and access gates for controlled-access facilities. Their expansion indicates that they have captured a large segment of the DFW market and now are poised to further develop their service operations. They have consistently maintained a backlog of unbilled contracts The owner’s efforts have been concentrated on sales rather than concentrating on service operations – an area of obvious upside potential, hence, their newest area of focus.

The company was established in 1989 and is an S-corp. It has a large base of loyal customers and should maintain or grow due to largecontracts awarded and yet to begin. The company is positioned to thrive during the economic changes, especially with the growth in the service area which currently comprises only 20% of operations.

Sales for 1998 were $2,185,070 with a cash flow to owner of $346,549. Sales for 1999 were $3,112,747 with a cash flow to owner of $701,704. Contracts not billed at year-end 1999 were $1,184,882. Sales for 2000 were $2,781,090 with a cash flow to owner of $749,055 with unbilled contracts over $1,100,000. Note that owner unable to work for 3 months during 2000 due to health problems.

Year Established 1989

Number of Employees
There are 15 employees not including the owner. This includes techs, operations manager, receptionist, and other office personnel.

Inventory $45,000
Furniture, Fixtures, & Equipment $55,000
Vehicles
Real Estate
Accounts Receivable
Accounts Payable
Debt to Assume

Facilities
The company occupies 2,000 sq ft in a new office park. Office furniture is new as of the move to the new office.

Lease Terms
The lease is $2,700 per month with the term expiring at the end of 2002 with a 3 year option to renew.

Reason for Selling: Health problems.
Length of time selling Owners willing to remain after the sale:
The owner will stay during transition with a new owner for up to 4 months at no additional cost and will remain for a year at a rate of compensation to be negotiated for the additional 8 months if needed.
Represented by Broker? Yes
If approached by a Broker with a potential Buyer, will owner be willing to pay a contingency fee at a negotiated rate? N/A