Listing ID: 67584
This HVAC business has been offering the highest level of home comfort in the Northern Virginia area for years. They have laid out a strong foundation of efficient, reliable, and cost-effective heating, air conditioning, and indoor air quality products from York.
Quality heating and cooling products is where they begin. With technicians trained and equipped to handle anything from routine HVAC maintenance & repairs on a residential system to complete turnkey installations for commercial environments, they offer your family or business the best heating and cooling products and HVAC services, combined with a level of customer service that will exceed your expectations.
- Asking Price: $1,490,000
- Cash Flow: $317,384
- Gross Revenue: $3,122,311
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 completely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is extremely essential that you not count absolutely on a seller's word, yet rather, utilize the vendor's response along with your total due diligence. This will paint a much more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that revenue margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in new customers? Often times, businesses have repeat clients, which develop the core of their day-to-day profits. Particular elements such as new competitors growing up around the area, roadway building and construction, as well as personnel turnover can impact repeat clients and adversely influence future earnings. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the opportunity to build a returning consumer base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical family income effect future earnings prospects?