RedRock Lighting Profile
What they do – the short version:
- RedRock Electrical serves mainly National Accounts requiring interior and exterior lighting & signage management services for their operations in Western Canada
- RedRock Electrical has been around well over 15 years and the seller has owned it for the past 6 years
- Staff are trained part-timer’s responding to customer needs.
- Firm can grow without the need for added investment in equipment.
RedRock Lighting manages commercial and industrial lighting in for clients in Edmonton and vicinity.
This is a niche industry with lots of growth potential and high net margins. There are no marketing or advertising expenses. The firm is project focused with a simplified business model to serve national clients.
RedRock has been around well over a decade and the seller has owned for the last six years.
There are three years of full financials plus an up-to-date equipment list available for qualified buyers.
The seller is drafting a policy and procedures manual that will greatly aid the new buyer through transition and beyond.
There are five suppliers vying for their business. There is no inventory.
Owners and/or staff do not require an electrician ticket but would be beneficial and an asset.
The seller figures staff requirements to be less than a 1000 hours a year. Their business could grow without needing to hire any new staff.
Employee turnover has been very low.
RedRock Electrical completes projects and maintenance/service requests year round for their clients.
Their maintenance / service component is fairly steady year-round.
Bookkeeping is not onerous and is done by the seller himself using QuickBooks.
There is no regulatory need to have a trained first aid attendant on site. There are no hazardous materials used in this operation.
There has never been a WCB Claim.
Their customer base has been built through referrals and word of mouth. They do not have a Yellow Pages ad or a web site.
Their client base is small in numbers but extremely large in customer base. RedRock is the preferred contractor for a loyal handful of the biggest and most prestigious National firms.
A new owner wanting to concentrate on marketing and advertising would be able to exponentially grow & expand the companies service offerings with new clients and seamlessly with current clients.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q. Why you are selling?
A. Relocating for family reasons
Q. In your words, what does the firm do?
A. Commercial/industrial lighting and electrical services.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A. Bookkeeping and day to day operations. Organized, hard worker, mechanically inclined, able to work independently, self-motivated and able to problem solve and trouble shoot basic wiring and lighting issues.
Q. How long will you stay after the sale to help in the transition?
Q. Will you agree to a non-competition clause?
Q. Who should by this business?
A. First time business buyer or existing business owner wanting to take business to its full potential.
Q. Where do think the business has a competitive advantage?
A. National clients and lots of room for growth/expansion depending on how the new owner wants to operate it. Can keep it as is running part time hours or take it to its full potential by marketing/advertising, working full-time, and expanding across Canada with current clients.
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal
The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.