Business Overview

This company, a family-owned HVAC and mechanical contractor, has been in operation since the 1980’s. The company provides commercial HVAC services throughout Northwest Indiana and the Chicagoland area. The company serves varied industries including apartment buildings, churches, schools, industrial, and more. Through their years of operation, they have cultivated a loyal customer base with over 90% repeat clients.

The company is staffed with an experienced team of mechanics. They offer their customers products from industry leading manufacturers through relationships with local distributors. The company operates out of a 1,000 sq. ft. office and warehouse space located in Northwest Indiana. The real estate is available for either purchase or lease. The company presents many opportunities for growth under new ownership.

Financial

  • Asking Price: $1,750,000
  • Cash Flow: $496,650
  • Gross Revenue: $1,736,192
  • EBITDA: N/A
  • FF&E: $80,000
  • Inventory: $50,000
  • Inventory Included: Yes
  • Established: 1985

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,054
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The company was established in 1985, making the business 37 years old.
The sale does include inventory valued at $50,000, which is included in the requested price.

The company has 6 employees and is situated in a building with estimated square footage of 1,054 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. However, the true factor and the one they say to you may be 2 absolutely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of other factors. This is why it is very essential that you not depend totally on a vendor's word, but instead, use the vendor's response in conjunction with your total due diligence. This will paint a much more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that earnings margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Often times, companies have repeat consumers, which create the core of their everyday profits. Particular variables such as brand-new competition sprouting up around the area, roadway building, and also staff turn over can affect repeat customers and also adversely affect future incomes. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Exactly how might the regional typical household earnings impact future revenue prospects?