15 Y/O CA High-End Automation, Security & Audio Video Business
Specializing in Cutting-Edge Premium Technology Installation + Service
The company is a sales, service and installation company that helps businesses and upper income households connect with technology disruptions at the last mile – meaning installation of the latest electronic products for the office or home. The company is based in the hyper-growth market of San Francisco / Silicon Valley.
The purchaser will benefit from a high profit margin business that participates in a niche income stream from the frothy consumer electronics and tech sectors.
- The company is an authorized dealer, installer and servicer of premium equipment for home theaters, security systems, home automation, alarm monitoring, home automation and more.
The company serves high-end households, businesses, schools and other customers. The equipment it installs is not the kind of consumer electronics found on the shelf at Best Buy, or easily ordered off Amazon. Rather, the company trades in the high-end hardware that attracts wealthy homeowners who are audiophiles, movie buffs, tech geeks, and more. The company provides their customers with a superior experience.
Although the company does not deal directly in mass consumer electronics, the company is benefiting from game-changing innovations that are happening in the consumer-facing tech industry. Each of these new innovations is being utilized in the niche premium equipment market that the company does monetize. With the recent dramatic consumer adoption rate for such technology “disruptions,” the company is primed for even more rapid growth behind major trends including:
- Voice activation products -- Amazon’s Alexa and Apple’s Siri are pioneering voice activation, which grew by +129 percent in the US last year alone. The company sells multiple high-end models from makers like Sonos, where the focus is on installing and connecting many smart speakers around a high-end home or place of business. As voice activation expands to more types of electronic components, including automation products, demand for the company’s services will grow proportionately.
- Smart home security – For perspective on how hot this segment of the market is, Amazon recently purchased the Ring smart doorbell maker for over $1 billion, a 30 percent premium to its already-astronomical valuation. Google, Amazon, Samsung and others are investing heavily to battle over this market segment. Amazon just kicked the Nest products off its website as the marketing battle heats up. The company supports the last mile for the higher end units, but can also install the mass-market products if customers want. The key is that demand for these types of products will continue to accelerate.
- Connected Home – Beyond home security, the internet-of-things trends is bringing all new use cases to the market, and consumer demand is high. These include smart appliances, thermostats, window blinds, and more. Seeing the massive potential here, Google acquired the Nest Company, maker of a pioneering mass-market smart thermostat for $3.2 billion. The company has been a longtime dealer and installer of connected home products, and the greater consumer demand fueled by the huge companies will power ever-greater interest by customers in the company’s niche.
Acquiring the company is a way to buy in to all the exciting tech disruption, but with a much better ROI opportunity than simply buying shares of Amazon, Google/Alphabet, or Apple in the equity markets (given these are currently trading at quite high valuations).
- For a financial buyer, the company offers a proven steady income stream and skilled and loyal personnel that will keep the business humming for years to come.
- For a strategic buyer, the company is primed for rapid growth by scaling its current capabilities into more product categories, and potentially into new geographic locations.
- Please contact us for more information on accelerated growth plans if you’re interested in geographical expansion.
Purchase Considerations
After having built up this successful business and created sustaining value, the founding owners are selling the company in order to retire. They are willing both to sign a non-compete agreement with the new owners and stay on as consultants after the transaction to assist with the transition. One owner is also willing to stay on if needed in the capacity of president or general manager.
Transferring to the new owner will be:
- All assets of the company,
- The high, intangible value of the company’s strong reputation and goodwill in the market.
- A talented team that can manage operations without hand-holding
The company is the type of opportunity that can fit the interests of many different kinds of buyers:
- For a buyer who wants to take a hands-on role - - the company has a steady stream of new and repeat customers. A new owner-operator can roll up his or her sleeves and begin adding incremental value right away, even if he or she has no experience in the audio/video installation market. The existing team is on point and supportive.
- For a strategic buyer who wants to fold the company into their own structure -- the current team is an ideal fit. It’s “lean and mean” yet offers synergistic opportunities when integrated with another enterprise.
- For a financial buyer looking for passive income – the company offers steady and predictable cash flow. One of the owners is available to remain in place as a consultant to assist with the transition. Replacing the owners’ role would require one fulltime general manager, which the outgoing owner is willing to train.
For a strategic or financial buyer looking for growth – the company’s reputation, culture, and proprietary business practices can serve as a blueprint to scale across California or anywhere else in the country.
Negotiable