Business Overview

RVA Business Brokers is pleased to offer this full of potential HVAC company to the market.

Our Client is a Maryland-based provider of heating and cooling sales and service. Boasting a broad customer base and a reputation for excellent service, the Company is an impressive opportunity for a strategic buyer or a financial acquirer looking for a platform.
FINANCIAL HIGHLIGHTS
Company revenues for 2021 are on track through six months of 2021 to be at an all-time high of approximately $1,100,000 The company has experienced consistent revenue over 2016 to 2019. Revenue for 2020 was near the same level as previous years but Covid caused second quarter revenue to be down significantly and also some disruptions in the supply chain effected profitability. Combination with an existing company in the industry could generate new cost savings and further increase this margin. Steady Controlled Growth in SDE and Cash Flow!

Financial

  • Asking Price: $750,000
  • Cash Flow: $280,000
  • Gross Revenue: $1,200,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,800
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

We have a nice 1800 Square foot office/industrial space with roll up doors

Is Support & Training Included:

Owner is willing to stay indefinatlely would like to get away from the back office work of ownership

Purpose For Selling:

Owners approaching retirement but wants to unload the back office management

Pros and Cons:

There is always competition

Opportunities and Growth:

Unlimited Growth available from the area

Additional Info

The company was established in 2011, making the business 11 years old.
The transaction won't include inventory valued at $5,000*, which ins't included in the listing price.

The business has 7 employees and is situated in a building with approx. square footage of 1,800 sq ft.
The property is leased by the business for $1,800 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. However, the real reason and the one they tell you might be 2 absolutely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, current reduction in profits, or an array of various other reasons. This is why it is very vital that you not depend totally on a seller's word, however instead, utilize the seller's answer together with your general due diligence. This will repaint a more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that profit margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new consumers? Many times, operating businesses have repeat customers, which develop the core of their everyday profits. Specific aspects such as new competitors sprouting up around the area, road building and construction, and staff turnover can affect repeat customers and negatively influence future revenues. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the possibility to construct a returning client base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the local median home income impact future revenue potential?