Listing ID: 80784

Business Overview

This second generation HVAC Company has been in continuous operation for almost 3/4 of a century serving communities in Idaho and Oregon. The Company specializes in system and equipment replacement for existing residential homes; installation/retrofit, fabrication, air cleaners, filter systems, zone controls and humidifiers along with fireplace sales and installation. They are a dealership for multiple flagship brands and service all systems/brands. Their fabrication shop is one of only a few places in the Valley where a customer can special order custom fabricated HVAC parts or just about anything else made of metal. The Company has a knowledgeable staff and skilled technicians ready to provide personalized service.

Financial

  • Asking Price: $900,000
  • Cash Flow: N/A
  • Gross Revenue: $2,666,418
  • EBITDA: N/A
  • FF&E: $256,655
  • Inventory: $336,000
  • Inventory Included: Yes
  • Established: N/A
About The Facility:

The location has easy access and is located in the center of a thriving community experiencing a large increase in population growth. The business operates out of a shop/warehouse space of +/-7,550 square feet along with a fenced yard for storage.

Purpose For Selling:

After many decades of success the Owners are ready to retire.

Pros and Cons:

For over 70 years this business has operated in the geographic region developing a brand that is highly recognized and synonymous with quality customer service and craftsmanship. Reputation, name recognition, referrals and word-of-mouth advertising are key attributes of the opportunity. A team of long term, qualified technicians, support staff and salespersons are another strength and reason the business continues to flourish.

Opportunities and Growth:

The ideal buyer would be an HVAC company interested in immediate market share or another synergistic Company interested in diversification. An individual buyer would ideally be a journeyman HVAC technician or have related experience. COMMENTS This is a rare opportunity to purchase a 70 year plus legacy business that should continue to thrive for multiple generations in the future. With the surge of growth in Idaho and Oregon over the last several years a new Owner will be well positioned to further increase sales and profitability.

Additional Info

The transaction does include inventory valued at $336,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 absolutely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a range of various other reasons. This is why it is extremely important that you not depend totally on a seller's word, but rather, make use of the vendor's answer together with your overall due diligence. This will paint a much more reasonable picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that earnings margins are too thin. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new customers? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular variables such as brand-new competition sprouting up around the area, roadway construction, and also staff turnover can impact repeat clients and negatively impact future revenues. One vital point to take into consideration 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 individuals that see the business on a regular basis, the greater the chance to construct a returning customer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the local average house earnings influence future revenue potential?