Business Overview

Retirement-Highly Profitable A/C Contractor with Service Warranty Contracts. Well established in servicing South Florida for commercial & residential A/C & plumbing services. Clients include homeowners, condominium owners, condominium property managers & associations, property management companies. The company receives 40% of its revenues comes from recurring prepaid residential & commercial service contracts. 2021 sales $5 million with an SDE of $500k+. Experienced team of service technicians, office staff, sales & management. Seller will provide extended transition and has staff prepared to manage the operations if needed.

Financial

  • Asking Price: $2,900,000
  • Cash Flow: $532,990
  • Gross Revenue: $5,276,283
  • EBITDA: N/A
  • FF&E: $170,000
  • Inventory: $350,000
  • Inventory Included: Yes
  • Established: 1973

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:30
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller Currently owns the warehouse. Seller will provide a lease for $8k/month. Seller will provide a 5 yr lease with a 5 yr option. Square Footage 8111.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost.

Purpose For Selling:

Retirement.

Additional Info

The business was established in 1973, making the business 49 years old.
The deal will include inventory valued at $350,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the real factor and the one they say to you may be 2 absolutely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a range of other reasons. This is why it is extremely important that you not rely totally on a vendor's word, yet instead, use the vendor's solution along with your overall due diligence. This will paint an extra sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering items like stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that earnings margins are too tight. Many companies 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 think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new consumers? Most times, businesses have repeat consumers, which develop the core of their everyday earnings. Particular factors such as new competitors growing up around the location, road building and construction, as well as staff turn over can influence repeat clients and also adversely affect future earnings. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the higher the possibility to develop a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the regional typical family income impact future revenue prospects?