Business Overview

This business is Pre-Qualified by an SBA Lender>>>

This is a highly desirable “old world” business!

This long established HVAC Company is a full-service heating and cooling contractor providing complete residential and commercial heating and cooling services in Arizona. The Company has been operating since 1991.
The Company has approximately 900 residential service contracts and 51 commercial service contracts which is a very desirable element to a potential buyer. Gross revenues have continued to increase year over year.
The average amount of inventory the Company carries is $75,000. The on-hand inventory is included in the Purchase Price.

The Company holds all the necessary business and Arizona contracting licenses to operate in both the residential and commercial areas. The acquiring company will need to have or obtain the necessary Registrar of Contractors License to operate the Business.The Company is large enough to handle single residences, multiple residences, multi-family apartment buildings, commercial and industrial buildings as well as industrial manufacturing plants.
The Company has an excellent reputation with a strong strong social media & web presence. The Company has very favorable reviews and ratings with the Better Business Bureau, Angie’s List, Google and Yelp.
The owners currently work in the business and are ready to train and transition the next generation of this highly respected business.

Note: The Sellers Discretionary Earnings (Cash Flow) are the result of four years weighted SDE earnings.

Please contact Broker for further information.

Financial

  • Asking Price: $1,725,000
  • Cash Flow: $422,000
  • Gross Revenue: $2,773,450
  • EBITDA: $175,694
  • FF&E: $337,000
  • Inventory: $75,000
  • Inventory Included: Yes
  • Established: 1991

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:3,828
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The real property is currently owned by the seller. The lot size is 8,375 square feet with a 3,825 square foot building. A purchaser has the option of leasing the facility for $4,000/month or purchasing the real property based upon an MAI appraisal.

Is Support & Training Included:

The seller will assist in training and transition. The time period is negotiable and may vary depending on the needs and experience of the purchaser.

Purpose For Selling:

Semi-Retirement

Pros and Cons:

As a result of the high and potentially critical temperatures, Arizona residences, property managers, businesses are highly dependent on the services of HVAC companies.

Additional Info

The company was founded in 1991, making the business 31 years old.
The sale shall include inventory valued at $75,000, which is included in the listing price.

The company has 16 employees and is situated in a building with approx. square footage of 3,828 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. However, the true factor vs the one they tell you might be 2 completely different things. For instance, they might say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is extremely essential that you not depend completely on a vendor's word, however instead, make use of the vendor's response in conjunction with your total due diligence. This will paint an extra practical image of the business's existing scenario.

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 deal. Lots of businesses borrow money so as to cover things like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that profit margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be met or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in brand-new consumers? Often times, businesses have repeat customers, which form the core of their day-to-day profits. Certain elements such as new competitors sprouting up around the location, roadway construction, as well as employee turn over can impact repeat clients and also adversely impact future revenues. One crucial 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? Undoubtedly, the more individuals that see the business regularly, the higher the chance to develop a returning consumer base. A last idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the regional average family earnings influence future income potential?