Business Overview

Commercial Refrigeration & HVAC sales/service business generates $250K cash flow in a vibrant area in terms of demand. This well-established business sells, installs and services ice machines, walk-in/reach-in refrigerators/freezers and HVAC systems for well-known hospitals, schools, grocery/convenience stores, restaurants and many other commercial operations. The business has grown steadily over the past several years by word-of-mouth and referrals. Field and administrative team in place using well-situated real estate owned by seller in a solid Nebraska community. Inventory in the amount of $100K and truck fleet used in business included in sale. Owners seek to retire and want buyer to succeed, so will help with the transition. This is an excellent opportunity with ample growth potential for a motivated buyer!

Contact Tom Freimuth, Business Broker, Results Business Advisors, tom.freimuth@resultsba.com, 402-212-6979, for complete details or to arrange a private tour with the seller.

Financial

  • Asking Price: $950,000
  • Cash Flow: $250,000
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

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

Real estate is owned in excellent location. Seller would consider sale of real estate.

Is Support & Training Included:

Owners seek to retire and want buyer to succeed, so will help with transition! Owners plan to remain in the community, thereby facilitating assistance.

Purpose For Selling:

Retirement & other opportunities in the community.

Pros and Cons:

Vibrant area in terms of demand for refrigeration equipment and services. Business has ample potential to expand.

Opportunities and Growth:

This business is extremely busy. Additional service technicians would enable significant growth.

Additional Info

The transaction will include inventory valued at $100,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell businesses. Nevertheless, the genuine factor and the one they tell you might be 2 totally different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or a range of various other reasons. This is why it is really vital that you not count absolutely on a vendor's word, but rather, make use of the vendor's solution along with your general due diligence. This will repaint a more practical picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things such as stock, payroll, accounts payable, etc. Remember that sometimes this can mean that profit margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new consumers? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Certain elements such as brand-new competitors sprouting up around the area, roadway construction, and staff turn over can impact repeat clients as well as negatively impact future earnings. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the possibility to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood average family income effect future income prospects?