Electronic Metering/Billing/Locker Distributor

Business Overview:

Founded in 1981, this business operates principally as a utility monitoring and billing company for apartment and property management companies. This Midwest technology business provides contract design, development and manufacturing of various unique measurements, communications and fully regulatory compliant metering equipment and services to a diverse customer base. This company also provides contracted specialty billing services .Another vertical sells water and gas metering hardware and performs installs that support the billing operation. Customers sign 3 to 5-year contracts, with auto-renewals and penalties for non-compliance. The company has built its billing and utility monitoring business principally in the Midwest, although they do business from Arizona to Maryland. The federal “Combined Sewer and Overflow” legislation (CSO) identified 772 municipalities that require separation of their water and sewer lines These major construction efforts are funded by state and local bonds and increased water and sewer charges. Some smaller cities in the region have seen prices increase by over 140%.Larger cities like Atlanta have seen water prices increase by over 230% based on news media statistics. The company’s metering and billing services allow property managers to avoid incurring these increasing utility charges and direct them to the apartment or condominium occupant. This has two effects: it lowers the property managers’ operating costs and reduces water and gas overuse.

There are long-term contracts with hundreds of property managers across the US. The company offers analog, digital, telephone and radio products, all US Patented, UL Listed, FCC Certified, NCWM, NUAA and ASHRAE compliant.

The company markets products directly and via their website to property management firms, civil engineers, and developers that specify utility metering products. The 3^rd party billing operation provides billing and collection services but is not responsible for the liabilities of collections. They also sell, install and maintain lockers throughout a 7- state region to apartment complexes for no-contact package/freight deliveries. This solution adds value to their multi-family customer base. The business model is a one-time capital investment, as well as a recurring revenue stream with multi-year support contracts.

Sales have averaged nearly $2,000,000 annually, with seller's discretionary cash flow over $330,000. There is approximately $500,000 in FFE and over $200,000 in inventory included in the sale. There are 6 full-time employees that work to support all phases of the business. The business could be easily relocated or incorporated into another business.

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Property Features and Assets:

5,000 sq. ft. leased office/industrial space.  Business can be easily re-located.

Market Competition and Expansion:

There are several similar sized competitors nationally and a couple of much larger companies in the industry.

Reason for Selling:

Additional Details:

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