Business Overview

This is an opportunity to purchase a commercial HVAC, plumbing, refrigeration and electrical service company that serves the Kansas City Metro area. They are primarily focused on providing preventative and ongoing maintenance, equipment service, and small project completion.

The company has years of relationships with local commercial businesses and the unions. A team of tenured managers, well-trained technicians, and solid systems, processes and polices are in place which will allow for an easy transition to a new owner.

Sales and cash flow numbers are a two year average.

Owner plans to lease the building to the new buyers but may consider selling.

Financial

  • Asking Price: $1,137,000
  • Cash Flow: $379,300
  • Gross Revenue: $2,736,000
  • EBITDA: N/A
  • FF&E: $245,000
  • Inventory: $45,000
  • 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:12
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The transaction shall include inventory valued at $45,000, which is included in the asking price.

The company has 12 employees and resides in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. Nonetheless, the true reason and the one they say to you may be 2 completely different things. For instance, they might say "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is extremely important that you not rely totally on a seller's word, however instead, utilize the seller's solution together with your total due diligence. This will paint a more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans in order to cover items such as stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be met or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new customers? Many times, businesses have repeat clients, which form the core of their everyday earnings. Specific variables such as brand-new competitors sprouting up around the area, road building, and also staff turn over can impact repeat customers as well as negatively influence future profits. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning client base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the neighborhood median house earnings impact future earnings prospects?