Business Overview

This very profitable HVAC and Electrical Company has served the Atlanta metro area for more than two decades. The business provides commercial and industrial HVAC and electrical service and installation to a national property management company (30% of overall revenues) and is a confirmed provider for them on the master contractor list for the state of Georgia. They also provide HVAC and electrical to a national storage company (50% of overall revenues) serving their locations throughout Georgia and contiguous states for installation and service. The remaining 20% of revenues is derived from commercial clientele for 100% service work in both the HVAC and electrical space.
• Multidiscipline service company offering Heating, Air Conditioning, and Electrical installation and repair services
• The company is a Certified Top Brand HVAC Dealer
• The geographic market for service is metro Atlanta. The new installation market area is Georgia and surrounding states.
• There exists a great opportunity to grow the company through implementation of a detailed marketing plan as the company does no marketing of the business. Hiring a dedicated sales manager would also promote company growth.
The business has no employees. The company has a base of longstanding, dedicated subcontractor crews for Installation of products. The company has two service techs that are paid on a 1099 that performs all service work. The owners manage the day-to-day operations and administrative processes of the business.

Financial

  • Asking Price: N/A
  • Cash Flow: $735,790
  • Gross Revenue: $3,133,839
  • EBITDA: N/A
  • FF&E: $218,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is operated from a 4,000 square foot leased facility at the rate of $2,500 per month. The facility contains 6 offices and a large 2,000 square feet warehouse.

Purpose For Selling:

Retirement

Additional Info

The business was founded in 1998, making the business 24 years old.

The company has 2 employees and resides in a building with estimated square footage of 4,000 sq ft.
The real estate is leased by the business for $2,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell operating businesses. Nevertheless, the true reason and the one they tell you might be 2 completely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or an array of various other reasons. This is why it is very important that you not rely absolutely on a vendor's word, but rather, use the seller's answer together with your overall due diligence. This will paint a more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract new customers? Most times, companies have repeat customers, which form the core of their everyday revenues. Specific factors such as new competitors sprouting up around the location, road building and construction, as well as staff turn over can influence repeat clients and adversely influence future profits. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning customer base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood median family earnings effect future revenue prospects?