Business Overview

Founded in the mid-2000s, the Company is a leading mechanical and building automation systems contractor. The Company offers three primary services: HVAC equipment maintenance, HVAC equipment replacement, and building automation installation and service.

All work provided by the Company is sold to business owners and operators. Customers seek the Company out for two primary reasons. The first reason is that the customer’s current system has failed, and they need repair work performed. The second reason is that customers often seek to increase energy savings or expand their current facilities. The Company serves customers from a variety of industries, including commercial, municipal, and institutional.

The Company operates with a strong management team and staff in place. The owner has passed the majority of the leadership role to a general manager who handles day-to-day operations. The owner is seeking to sell the Company as they are ready to move on from business ownership and transition to the next phase in life. The owner is willing to provide reasonable and ordinary transition assistance to the new owner(s).

The Company operates out of a 21,500 square foot facility. Approximately 15,500 square feet is utilized for storage, while the remaining 6,000 square feet is office space. The facility’s value is estimated at $500,000. The owner is flexible regarding the sale or lease of the real estate.

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Financial

  • Asking Price: N/A
  • Cash Flow: $305,722
  • Gross Revenue: $5,350,283
  • EBITDA: $219,602
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:21,500
  • Lot Size:N/A
  • Total Number of Employees:28
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

21,500 total square feet. The building was built in 1981 and is maintained in good condition.

Is Support & Training Included:

Ownership is willing to provide reasonable and customary transition assistance.

Purpose For Selling:

Retirement.

Pros and Cons:

(1) Deep and Experienced Staff: The Company boasts an experienced staff with vast industry knowledge. The management team has an average tenure of 15 years, while office staff averages 17 years. Because of the deep and experienced staff, the owner is not required to put significant time into the Business each week. The team is trusted to get the job done on time, within budget, and to a high-performance standard. A new owner could step into a part-time role, like current ownership, maintain Company performance, or become more active and drive significant growth in coming years. (2) Brand Recognition and Variety of Service Offerings: With a history dating back to 2007, the Company is one of the most recognized Indiana HVAC and building systems automation contractors. This recognition has been built through numerous large projects and consistent performance on all jobs. The Company works with prominent suppliers to provide industry-leading products to its customers. The Company offers a variety of services that most competitors cannot match. Its ability to complete large and complex jobs in addition to routine maintenance and repairs carves itself a unique role in the market.

Opportunities and Growth:

(1) Geographic Expansion Through the Midwest: The Company has yet to expand drastically throughout the Midwest. Additional geographic expansion could open the Company to large cities presenting substantial opportunities. Cities undergoing large growth and development present a unique expansion opportunity for the Company. (2) Increase Equipment Maintenance Service Efforts: Current ownership believes there is untapped potential in its equipment maintenance service division. This division provides a unique service plan that is applicable and necessary for a large number of customers. Expanded efforts within this division could drive substantial growth. (3) Bolster Sales and Marketing Efforts: The Company has developed a web presence that provides a solid platform for future growth. The website contains a great deal of useful content that could be leveraged to assist search rankings. The webpage could implement SEO (Search Engine Optimization) best practices to boost its current rankings.

Additional Info

The business has 28 employees and is situated in a building with estimated square footage of 21,500 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. Nevertheless, the real reason and the one they say to you might be 2 completely different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a range of various other reasons. This is why it is really vital that you not rely entirely on a seller's word, yet instead, use the vendor's solution combined with your overall due diligence. This will repaint a more realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too small. Lots of companies fall 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new consumers? Most times, businesses have repeat clients, which create the core of their day-to-day revenues. Particular elements such as new competitors growing up around the location, road building, and staff turn over can influence repeat customers as well as negatively influence future incomes. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the greater the opportunity to construct a returning client base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional average home earnings impact future income potential?