Business Overview

“We are a specialized company more like those one finds in a major metro area. Since we are in a smaller market, all of our competitors are from larger cities and have higher costs. But what sets us apart mostly is our level of customer service and competence.” — The Owner

This well established and very profitable company provides service, design, and installation for HvacR commercial industrial customers. Having the ability to service both steam and hot water boilers, several brands of Heating and Air Conditioning units, and commercial refrigeration provides the company with several streams of revenue.

Current marketing efforts include an active website, but most work comes due to the company’s unique service and their good reputation in the market.
While the seller is content with the size and scope of the business, he noted, “…due to the nature of our business I feel that with energetic efforts, sales could easily double or triple in a relatively short time frame…”

Financial

  • Asking Price: $2,200,000
  • Cash Flow: $612,000
  • Gross Revenue: $2,700,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

1200 square ft facility may be available for purchase for an additional fee.

Is Support & Training Included:

The seller is willing to train a new owner.

Purpose For Selling:

Retirement

Pros and Cons:

Few competitors in this market, especially in the area and able to compete with the prices offered.

Additional Info

The business has 10 employees and is located in a building with estimated square footage of 1,200 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. However, the genuine reason vs the one they tell you might be 2 totally different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or a variety of other factors. This is why it is very crucial that you not depend totally on a seller's word, yet rather, use the vendor's response along with your general due diligence. This will repaint an extra reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to 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 new clients? Often times, businesses have repeat customers, which develop the core of their everyday profits. Specific elements such as brand-new competitors sprouting up around the area, roadway construction, and also employee turnover can influence repeat customers and adversely influence future profits. One crucial point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the chance to build a returning customer base. A final thought is the basic area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the regional average family earnings impact future earnings prospects?