Business Overview

Profitable 2nd Generation, family-owned, HVAC Contractor with steady income streams derived primarily from new construction and commercial service and repair although a residential construction and service/repair division has been established and is growing. Average 3-year SDE is $451,264 on revenues of $5.7M. Real estate (shop & yard) optionally available or lease. Asset rich FF&E. Good books and seller is willing to accommodate a lengthy transition.

Financial

  • Asking Price: $2,250,000
  • Cash Flow: $381,264
  • Gross Revenue: $6,074,831
  • EBITDA: N/A
  • FF&E: $704,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A

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:14
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell businesses. Nevertheless, the genuine factor and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is very essential that you not rely entirely on a seller's word, yet rather, make use of the seller's answer in conjunction with your total due diligence. This will paint an extra reasonable picture of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover things such as stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be met or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new customers? Many times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular variables such as brand-new competitors growing up around the area, road building and construction, and also personnel turnover can affect repeat consumers and also adversely influence future earnings. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A final thought is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the local average family earnings influence future income prospects?