Listing ID: 77353
This well-run HVAC company in Southern CA has been generating on average about $8 million in annual gross revenue with about $1.2 million in EBITDA. The company’s backlog as of the 1st week in January 2022 is about $5.6 million. The company is prequalified with school districts in Southern California and is a preferred subcontractor for a few general contractors. Their revenue model is B2B. The company furnishes and installs heating, cooling, or ventilation systems; refrigeration; ducting; piping; air/water balancing; building automation and controls; mechanical insulation; and commissioning. The company employs 22 FT and one PT personnel.
The business requires CSLB C20 license.
For further information about the business, please contact Matt Manavi at 714-923-1222 or email firstname.lastname@example.org
We do require a signed NDA, a professional summary, and proof of funds prior to releasing any confidential information.
- Asking Price: $5,244,312
- Cash Flow: $1,320,000
- Gross Revenue: $7,400,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or a range of other reasons. This is why it is extremely important that you not rely entirely on a seller's word, but rather, utilize the seller's solution along with your overall due diligence. This will paint a much more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too small. Lots of 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 also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Most times, operating businesses have repeat clients, which form the core of their daily profits. Specific factors such as new competition growing up around the area, roadway building and construction, and also employee turn over can influence repeat clients and also negatively influence future revenues. One important point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the chance to build a returning consumer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median family income effect future revenue potential?