Business Overview

This company is a great opportunity for an individual buyer with HVAC experience or to add to your existing HVAC Company. The company focuses on residential service and replacements with 98% residential and only 2% commercial. 80% of all business is service or replacement work and only 20% is remodeling/new construction. A loyal repeat customer base as well as a great reputation locally fuel this company’s success. The owner will stay on for up to six months, if requested, to ensure a smooth transition.

Financial

  • Asking Price: N/A
  • Cash Flow: $389,000
  • Gross Revenue: $1,055,000
  • EBITDA: N/A
  • FF&E: $140,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 1989

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Run out of home office

Is Support & Training Included:

Owner will stay on to assist for up to 6 months in a smooth transition.

Purpose For Selling:

Eventual retirement

Additional Info

The business was started in 1989, making the business 33 years old.
The sale shall include inventory valued at $5,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nonetheless, the true reason and the one they tell you might be 2 completely different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other factors. This is why it is really essential that you not depend absolutely on a seller's word, but instead, utilize the vendor's response in conjunction with your total due diligence. This will repaint an extra practical picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover points such as supplies, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too tight. Many organisations fall into 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 take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in brand-new customers? Most times, operating businesses have repeat customers, which create the core of their daily profits. Specific variables such as brand-new competitors growing up around the area, road construction, and also employee turnover can affect repeat customers as well as adversely influence future earnings. One essential thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the possibility to build a returning client base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood mean home earnings impact future revenue potential?