Business Overview

This is a second generation HVAC business providing repair and maintenance service to retail and commercial clients in several counties and cities. The owner is licensed and has a seasoned staff of technicians and installers that support the demand for daily HVAC services.

The revenues and profitability are positive and consistent with the potential to achieve additional scalability while further improving cash flow for the business. Looking for a buyer that is currently in the industry for ease in transition. However, owner is willing to stay on with a new buyer for a sufficient transition period, which he has over 30+ years of recurring clients who continue to use his services.

Scalability in his expenses while increasing revenues based on demand for his services.

Butler Building containing office space & 3 Bays sitting on 0.40 acres. Owner owns the building.

Financial

  • Asking Price: $500,000
  • Cash Flow: N/A
  • Gross Revenue: $667,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1986

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

6 weeks

Purpose For Selling:

retirement

Additional Info

The venture was founded in 1986, making the business 36 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell companies. Nonetheless, the true factor and the one they say to you may be 2 entirely different things. As an example, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competition, current reduction in incomes, or an array of other reasons. This is why it is very important that you not rely totally on a vendor's word, however instead, make use of the vendor's solution along with your total due diligence. This will paint a more realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies finance loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that earnings margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new customers? Most times, businesses have repeat clients, which develop the core of their daily earnings. Specific elements such as new competition sprouting up around the area, road building and construction, and employee turn over can affect repeat clients and also negatively affect future profits. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the greater the chance to construct a returning consumer base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the regional typical house earnings effect future revenue prospects?