Business Overview

This California HVAC business was started in 1970 and is “the” go-to HVAC company in the area, providing heating, ventilation and air conditioning equipment (HVAC) for residential (40%) and commercial and industrial applications (60%). They provide sales, installation, maintenance and repair services. Sales are roughly 60% to 70%; service and maintenance 30% to 40%. The facility includes a warehouse and office space and is leased with an easy transfer of the lease available. The company has a proven track record supported by over 50 years of ongoing business. With its niche range of products & services, the marketing efforts focus on targeting residential and commercial customers within a 50-mile radius of its Central San Joaquin Valley location. The business had added a franchise a few years ago but found it didn’t add revenue or profit and was more trouble than it was worth. The business is so well recognized and so strong that the franchise label was inconsequential, and a new owner will save the franchise fees! The business is being sold without the franchise, which will end in October 2021 and the strong business won’t miss a beat! Last year, 2020, despite the pandemic, the total revenue was just under $2 million, with Seller’s Discretionary Earnings close to $250,000 despite higher equipment costs due to pandemic issues. With a large customer base and solid reputation, the company continues to attract new customers while maintaining its reputation with existing ones. The owners are now senior citizens and are looking for the right buyer to take over their successful, 50+ year-old business. They will remain in the area and are committed to assisting a new owner continue their success! Don’t miss this one!


  • Asking Price: $702,000
  • Cash Flow: $250,000
  • Gross Revenue: $2,000,000
  • EBITDA: $169,000
  • FF&E: $200,000
  • Inventory: $40,000
  • Inventory Included: Yes
  • Established: 1970

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:13
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

More than $200K in Equipment is included. Property measuring 6,200+/- square feet is Leased.

Is Support & Training Included:

While the owners are available for a standard transition period, the strong and capable team would stay after the sale.

Purpose For Selling:

Pursuing other interests and/or approaching retirement.

Additional Info

The venture was started in 1970, making the business 52 years old.
The sale does include inventory valued at $40,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nonetheless, the true reason and the one they tell you might be 2 absolutely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a range of various other reasons. This is why it is very important that you not depend totally on a vendor's word, however rather, utilize the seller's response in conjunction with your general due diligence. This will repaint a much more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that profit margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new clients? Often times, companies have repeat customers, which create the core of their everyday earnings. Certain factors such as brand-new competitors sprouting up around the location, road construction, and also personnel turnover can impact repeat consumers and adversely impact future incomes. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the better the opportunity to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? How might the regional median home income influence future revenue potential?