Business Overview

The company is a highly reputable HVAC construction and sheet metal fabrication and design service company headquartered in the East Bay/Tri Valley area. The business was established in 1997 by the current owner. The company fabricates and installs architectural sheet metal as well as services and installs HVAC systems for both commercial and residential customers.

Licenses Required: C20 and C43

Financial

  • Asking Price: $700,000
  • Cash Flow: $446,199
  • Gross Revenue: $2,686,152
  • EBITDA: N/A
  • FF&E: $145,430
  • Inventory: $23,000
  • Inventory Included: Yes
  • Established: 1997

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,200
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility is operating out of a 3,256 sq. ft. building space, including approximately 1,000 sq. feet of office space.

Is Support & Training Included:

Seller will provide onsite training for 4 weeks at 40/hrs per week, plus 5-6 months telephone consultation not to exceed 5 hours per month.

Purpose For Selling:

Retirement

Pros and Cons:

The market is generally in an upswing which has created a very positive environment for this industry. One competitive advantage for the company is that it is one of few metal fabrication businesses that does their own installs. This has provided an additional source of revenue for the company.

Opportunities and Growth:

A new owner who is better acquainted with the various social media sites could potentially experience an increase in clients and therefore revenues. There are numerous channels available that might be a good addition to the marketing strategy.

Additional Info

The venture was started in 1997, making the business 25 years old.
The sale does include inventory valued at $23,000, which is included in the suggested price.

The company has 12 employees and resides in a building with estimated square footage of 3,200 sq ft.
The real estate is leased by the business for $6,750 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 completely different things. For instance, they might claim "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is very crucial that you not depend absolutely on a seller's word, yet rather, make use of the vendor's response together with your general due diligence. This will paint a much more realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too tight. Lots of businesses fall into 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 obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new clients? Many times, businesses have repeat clients, which develop the core of their everyday revenues. Certain aspects such as new competitors growing up around the location, roadway building, and employee turn over can affect repeat customers and also negatively impact future revenues. One essential thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the local median home income influence future earnings potential?