Business Overview

Established in 1984, this business is the premier HVAC contractor for the big jobs, the average job is usually over $300,000. Operating throughout the Gulf Coast region with customers from various private and governmental agencies with schools and hotels being the primary focus. This business is recognized as the one that can get the job done right and at the right price. The work performed is both fixed-price and time and materials projects. Most projects are for the complete HVAC system installation for new construction or complete system replacement and upgrade. The service department is growing with a new commitment from the owner to make this a new profit center. Large sheet metal shop and sheet metal inventory. Experienced employees and a favorable facility lease for the 12,000 SF facility all on 2.77 acres in South Alabama. Fully equipped and includes forklift, 4-work trucks, trailers, and one delivery truck, and two service trucks. The $3,500 monthly lease on the offices and shop is covered in the cash flow.The business has an experienced General Manager that also doubles as a project foreman. Seller will stay for up to 2-years with an employment contract. New owner must be able to secure bonding for the work in progress and future work as it come in.
The purchase price includes $500,000 in inventory. The company presently has $5.7 million of work in progress and is now bidding out over $7 million more work for 2021 into 2022. Plenty of work available for the future and a new owner will step into a money maker from the start. This is structured as an asset sale.

Financial

  • Asking Price: $2,750,000
  • Cash Flow: $595,621
  • Gross Revenue: $7,154,900
  • EBITDA: N/A
  • FF&E: $360,000
  • Inventory: $500,000
  • Inventory Included: Yes
  • Established: 1984

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,000
  • Lot Size:N/A
  • Total Number of Employees:42
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

12,000 SG building on 2.77 acres. Rea; estate can be purchase for $385,000.

Is Support & Training Included:

All needed. Owner willing to stay for up to 2-years.

Purpose For Selling:

Retirement

Additional Info

The company was started in 1984, making the business 38 years old.
The transaction does include inventory valued at $500,000, which is included in the requested price.

The company has 42 employees and is situated in a building with estimated square footage of 12,000 sq ft.
The real estate is leased by the company for $3,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell businesses. However, the real factor and the one they say to you might be 2 entirely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in incomes, or a range of various other factors. This is why it is extremely important that you not rely entirely on a vendor's word, however rather, use the seller's response along with your general due diligence. This will paint an extra reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering points like stock, payroll, accounts payable, and so on. Remember that sometimes this can indicate that earnings margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Specific elements such as new competitors sprouting up around the location, road building and construction, and also personnel turn over can influence repeat consumers as well as adversely impact future incomes. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the possibility to build a returning client base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the local mean household income impact future revenue prospects?