Premium Home Technology Integrator, 30-Year Michigan Low-Voltage AV & Automation Firm

$2.6M

Revenue

$550K

SDE

2.9x

Multiple

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Full Editorial Writeup

This is a low-voltage integrator that designs and installs premium AV systems, structured networks, camera and security systems, lighting control, motorized window treatments, and whole-home automation. Founded in 1993, the company has a 30-plus year track record and a direct dealer relationship with all major premium brands, which positions it as a credentialed installer rather than a commodity electrician. It serves an affluent Michigan region, explicitly targeting the state's wealthiest residential clients while also handling commercial projects of any size.

The operation runs lean with two active owners plus seven full-time employees, working from 5,000 square feet of leased office and warehouse space that houses the service team and vehicle fleet. Revenue is $2.6M with $550k of SDE and $400k of EBITDA, a roughly 21 percent SDE margin that is healthy for the trade and reflects the higher-margin nature of the premium low-voltage niche. Inventory of $250k and $50k of FF&E are included in the $1.6M asking price.

What makes this business notable is its brand access and reputation in a wealthy market that values discretion and quality over price. The revenue is largely referral-driven and project-based today, which is both the risk and the opportunity: there is no meaningful sales engine and recurring revenue is underdeveloped, meaning an operator has clear, obvious levers to pull. It comps as a home services trade business with strong margins and a defensible niche.

Why we like it

Earnings quality is solid for the trade, with $550k SDE on $2.6M revenue and a separate $400k EBITDA figure that shows the number holds up after accounting for owner comp. The 21 percent SDE margin reflects the higher-margin premium low-voltage niche rather than commodity electrical work. Two active owners are baked into that cash flow, so a single working operator plus a hire could preserve most of it.
Durability comes from a 30-year reputation and direct dealer status with all major premium brands, which is a real barrier since manufacturers restrict authorized installers. Wealthy clients pick integrators on trust and referral, not price, so switching costs and relationship stickiness are high. Complex custom installs are difficult to commoditize or offshore.
The customer base is the state's wealthiest clients, a segment that keeps spending on home technology when they renovate or build regardless of broader economic softness. That insulates the business somewhat versus a mass-market home services operation. Commercial work adds a second demand channel beyond residential.
The operator advantage here is glaring and cheap to capture: the business runs on referrals alone with no sales function and almost no recurring revenue. An operator who adds outbound sales and monitoring contracts is not reinventing anything, just installing systems the industry already uses. That makes the growth thesis low-risk and self-evident.

How to improve it

Build a recurring revenue base by pushing alarm monitoring, camera monitoring, and annual service contracts onto the existing installed base. These clients already trust the firm and have money, so attach rates should be high, and recurring revenue directly lifts the exit multiple. This is the single highest-value lever and can start in the first 90 days by calling past clients.
Add a dedicated salesperson or business development role since revenue is currently referral-only. With two owners exiting, replacing them starts with someone who can generate pipeline from builders, architects, and interior designers who feed high-end projects. Referral partnerships with luxury builders could multiply lead flow without ad spend.
Strengthen the managerial and administrative layer the listing itself flags as a growth constraint. The two active owners hold institutional knowledge, so hiring an operations or project manager during the transition de-risks the departure and frees capacity for more concurrent projects. Document workflows before the owners leave.
Formalize a maintenance and upgrade program for existing systems, since installed AV and automation gear needs periodic updates and replacement. This creates predictable revenue and warm upsell opportunities as clients adopt new technology. It also deepens the relationship moat that protects against competitors.
Pursue commercial and multi-family integration work more deliberately, since the firm already handles projects of any size but appears residential-heavy. Commercial contracts tend to be larger and can smooth the lumpiness of custom residential projects. This diversifies away from single-market residential dependence.
Tighten project pricing and margin tracking on custom installs, where scope creep and labor overruns quietly erode profit. Standardized quoting templates and job-level margin reporting protect the healthy margins that make this deal attractive. Even a few points of margin recovery is meaningful on $2.6M revenue.

Diligence notes

Quantify how much revenue and profit is directly tied to the two active owners' personal relationships and hands-on project involvement. Retirement-driven sales with owner-generated referral revenue carry real customer transition risk, so understand which clients and referral sources leave with the owners. Structure earnout or extended transition accordingly.
Verify the direct dealer agreements with premium brands are transferable to a new owner and not personal to the current owners. Losing authorized dealer status would gut the moat and the pricing power. Confirm terms, exclusivity, and any volume commitments in writing.
Examine revenue concentration and project backlog, since project-based businesses can show strong trailing numbers that mask a thin forward pipeline. Ask for the current signed backlog, average project size, and revenue split between one-time installs and any recurring service. Referral-only lead gen means demand can be lumpy.
Confirm the lease situation given the building lease expires April 2027, roughly a year out. Understand renewal terms, rent trajectory, and whether the warehouse and fleet base can be relocated if needed. A short remaining lease is a negotiating point and a continuity risk.
Break down the $550k SDE add-backs and reconcile against the $400k EBITDA to understand true owner compensation and whether replacing two working owners costs more than the add-back implies. If both owners draw meaningful salaries, the real economics to a single operator may be tighter. Get payroll detail by role.

Source

Originally listed on BizBuySell. View original listing →