Listing ID: 82754
Business Overview
This residential HVAC company is off to a strong start and has made a net profit each of the last 2 years. Serving customers within a 40-mile radius of the Charlotte market, the company is focused on providing exceptional customer service. The company has over 1,000 clients now and is primed for growth. The owner believes this is due to his approach of evaluating each customer’s entire HVAC system on every visit.
Financial
- Asking Price: $250,000
- Cash Flow: $91,000
- Gross Revenue: $285,000
- EBITDA: N/A
- FF&E: $6,000
- Inventory: $500
- Inventory Included: N/A
- Established: 2019
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:4
- Furniture, Fixtures and Equipment:N/A
Seller Training for 30 (thirty) days at $ 0 (zero) Cost
Owner pursuing other opportunities
NON-Compete 50 (fifty) miles for 3 (three) years
Additional Info
The business was established in 2019, making the business 3 years old.
The deal shall not include inventory valued at $500*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. Nevertheless, the real factor and the one they say to you might be 2 absolutely different things. For instance, they might state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other reasons. This is why it is really vital that you not depend entirely on a vendor's word, but rather, utilize the vendor's response in conjunction with your general due diligence. This will repaint a much more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new clients? Often times, companies have repeat customers, which create the core of their daily revenues. Specific elements such as new competition sprouting up around the location, roadway construction, and also employee turnover can influence repeat consumers and adversely affect future earnings. One essential thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the higher the chance to build a returning customer base. A last idea is the general area 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 mean household earnings impact future income prospects?
