Business Overview

This HVAC business has been in business for 18 years. They are all commercial, no residential. They service and repair all types of commercial HVAC. A very small portion of the business is low voltage.
6 universal certified technicians come with the business. The seller has a C-20 license and a C-10 license. The seller manages the employees, handles estimates, and troubleshoots. The company has a dispatcher.
All fully paid vehicles included in the sale. This business is home based and can easily be relocated.
$300K receivables included in the sale price. All good and most under 30 days.
$52K Inventory Inc.

Financial

  • Asking Price: $1,795,000
  • Cash Flow: $525,064
  • Gross Revenue: $2,004,639
  • EBITDA: $352,034
  • FF&E: N/A
  • Inventory: $52,000
  • Inventory Included: Yes
  • Established: 2004

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:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Home Based- Must be moved (Home Based)

Is Support & Training Included:

Seller is willing to transition slowly out of the business to preserve clients.

Purpose For Selling:

Retirement

Pros and Cons:

This is an ideal acquisition for another HVAC company who wants to expand into the SoCal market or to pick up consistent profitable work from this companies top account. . They have all the relationships, records, and details on all the equipment they service for this and all their accounts. The client is very stable, with 700 locations nationally.

Opportunities and Growth:

This business could grow with in the local market or continue to service there largest account by carefully contracting technicians throughout the U.S.

Home Based:

This Business Is Home Based

Additional Info

The company was started in 2004, making the business 18 years old.
The deal does include inventory valued at $52,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell companies. However, the genuine reason vs the one they tell you might be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other factors. This is why it is extremely crucial that you not depend completely on a seller's word, but rather, use the seller's solution in conjunction with your total due diligence. This will paint an extra sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in brand-new customers? Often times, operating businesses have repeat clients, which develop the core of their daily profits. Certain elements such as new competitors growing up around the location, roadway building and construction, as well as personnel turnover can influence repeat clients and also negatively influence future incomes. One vital thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the greater the chance to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local average family earnings influence future revenue prospects?