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Adam Saitowitz's avatar

Aren't consulting businesses hard to scale? It's not a widget or software.

You did mention they have a software component to their business.

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Aditya's avatar

Good point! Their software is still in its nascent stage, but long-term contracts and client relationships spanning 10+ years set them apart from typical consulting firms. Plus, cross-selling across services adds to scalability.

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Alex smith's avatar

A great job Aditya, however I would like to point out something here. I have actually worked with Wilson before and ConEd uses them for their ‘green projects’ such as LED conversions in NY. There may be significant risk of those lines of revenue getting cut out if the current administration stops future funding toward such projects.

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Aditya's avatar

Thanks for your insight! That’s an important risk factor to consider. Given your experience, in what capacity did you work with Willdan? Were you involved in project execution, policy compliance, or another area? Would love to hear more about your perspective on how significant this risk might be!

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Alex smith's avatar

We installed energy efficient projects in NY. We would be in constant touch with Wildan who was representing ConEd. They were our go to for everything rebate related and ran the rebate programs for ConEd.

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Kristopher Rymer's avatar

Nice write-up. Pinged you on Twix also. I am considering a write-up of this on my own newsletter after a friend shared your article with me. Any idea what the revenue growth may look like for Integral Analytics the next few years? They seem to have had success with the cross-sell.

Just subscribed to your newsletter!

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Aditya's avatar

Thank you for the kind words and for subscribing! I’m glad you found the write-up helpful. In 2023, Integral Analytics’ software generated $15 million in revenue, growing by "a few million dollars" year-over-year (I assume to be ballpark ~15%). They’ve had success with cross-selling and have reduced revenue lumpiness by pairing software sales with consulting services from E3. In the near term, I see this as a 15-20% CAGR business.

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AR's avatar

Why was profitability depressed in 2021-22?

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Aditya's avatar

In 2021-2022, like much of the world, Willdan faced pandemic-related disruptions—projects were delayed, subcontractors were harder to find, and clients tightened their spending. These challenges hit profitability hard, reflecting the struggles many businesses experienced during that time.

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