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SBA Pre-Qualified | Mechanical Design & Engineering Firm | 29 Years | 80% Repeat Clients

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SBA Pre-Qualified

Listing photo: SBA Pre-Qualified | Mechanical Design & Engineering Firm | 29 Years | 80% Repeat Clients

Financial Overview

Asking Price:

$895,000

Sales:


$490,000

Profit:

$287,000

Year Established:

1997

Multiplier:


3.11

SellerForce® presents an SBA Pre-Qualified Engineering Firm that has designed building systems for commercial and industrial clients since 1997. Founded by an engineer with 57 years of experience, this business has become a trusted design partner for architects, contractors, and property owners. The firm completes 60 to 100 projects every year, keeps a repeat-client rate near 80%, and has never had a single claim or lawsuit filed against it.

SBA Pre-Qualification

This business has been pre-qualified for SBA financing, offering a distinct advantage to prospective buyers. For qualified buyers, this means the company meets stringent lender criteria for consistent cash flow, operational stability, and financial documentation, reducing uncertainty and expediting the lending process. With only 10% down, Qualified Buyers can secure ownership through a 10-year, fully amortized loan at competitive fixed interest rates, enabling an affordable monthly payment structure and maximum capital leverage.

Business Model

The company earns their income from heat-transfer design, plumbing and piping layouts, ventilation, grease traps, and humidity control. Their main product is the construction document set, supported by site visits and written reports. Most work is priced as a fixed fee, while hourly consulting is billed at $250 plus mileage. Projects average about $7,500 and start at $2,500, with no upper limit; past assignments have reached $20 million. Ongoing support is available when a building owner asks for it. Over the past three years, revenue has grown as the firm took on more technical work, especially industrial design.

Digital Marketing & Traffic

Customer acquisition runs almost entirely on word of mouth. Architects make up most of the client list, followed by commercial contractors and private building owners, and many of these relationships go back years. The company has one website and does not advertise yet still carries 20 to 30 active clients at any given time with a workload that has held steady year after year.

Operations

The owner leads all design work and puts in about 50 hours a week. A part-time administrator handles clerical tasks, while two part-time licensed PEs prepare construction documents under the owner’s direction. Team members have been with the firm for roughly eight and three years, and a fire-protection specialist joins as a partner when a project calls for it. Each project is logged and numbered, with paper and cloud-based files. Software licenses transfer with the sale, and state rules require only one licensed PE on-site for at least two hours a week. Books are kept in-house and with an outside CPA firm. The company-owned office is available to a buyer, though the work could also be managed from another location.

Growth Opportunities

The owner has focused almost all of his attention on one metro area, even though the firm is already registered in four southeastern states. Pursuing work across the rest of the home state and the other three states would open a much larger market with no new licensing hurdles. Hiring an electrical engineer would let the firm deliver full MEP packages, so architects could get every building system from one source. A basic marketing plan with an updated website, search visibility, and direct outreach to architects and developers would add a new lead source beyond referrals. More engineers and new partnerships would let the firm take on more and larger projects, like the downtown hotel job expected in January. With a market the owner calls nearly unlimited and growth held back only by choice, a buyer with the right staffing plan could expand quickly.

Business Broker Takeaways

  1. Deep Technical Experience: The owner brings 57 years of hands-on design experience, and the firm’s portfolio covers schools, factories, retail showrooms, and power generation sites. Few younger engineers have this level of mentoring and field time, which keeps competition limited.
  2. Steady Demand and Clean Financials: About $150,000 in contracted backlog is on the books with roughly four projects underway. There are no one-time expenses, no owner perks to adjust, and no major equipment purchases expected over the next two years.
  3. Owner Transition and Support: The current owner is deeply involved in the business, handling engineering, project management, and client relationships. Post-sale, the owner is open to assisting with the transition for up to 2 years, offering invaluable insights and continuity to the new owner, ensuring a smooth handover and sustained client trust.

Summary

This engineering business represents an exceptional opportunity for a technically skilled buyer looking to acquire a reputable and well-established firm with significant growth potential in a thriving market.

Code Name: Keystone
SF700

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