Listing ID: 82789

Business Overview

This company has been helping its customers keep comfortable in their indoor environments for over 40 years. The business serves both residential and commercial customers as quickly as possible with top of the line service, honesty and fair prices. The company has been successful throughout its history and has maintained its quality through the tough times our area has been forced to endure during the Corona Virus pandemic. The reputation of the business and its strong foundation makes it a great candidate for a new owner to enter and grow the operations even more.

Financial

  • Asking Price: $660,000
  • Cash Flow: $188,258
  • Gross Revenue: $1,058,580
  • EBITDA: N/A
  • FF&E: $134,679
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1979

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company has been operating from its current facility since 1991. It is in a great location very near the main transportation arteries of the area. The building is approximately 3,600 square feet in total with the office being a very small portion. The remainder of the space is a combination of shop space and storage. All new and spare parts inventory as well as new equipment that is waiting to be installed is stored here. Over the years the company has been able to determine the most efficient use of the space for prepping the coming jobs. The building has multiple large overhead doors to help with loading and unloading of materials.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The current owner maintains a master license and a new owner will need to obtain a master license in order to operate the company if they do not already have one. The current owner is willing to stay with the company for an extended period of time to make sure this transition occurs seamlessly.

Purpose For Selling:

Sellers of the company are getting older and have some health issues.

Pros and Cons:

There is plenty of competition in the industry in the area where this company operates. This company separates itself from the competition by always having the phone answered by a real person and by serving their customers in a timely manner with honesty and integrity at fair pricing. As simple as it sounds, this is a hard thing to find. The company has continued to grow over the years, mostly by word of mouth referral. These referrals show that they are satisfying their current customer base and exceeding the expectations set by their competitors.

Opportunities and Growth:

There are numerous growth opportunities available to the new owner of this business. The service area could easily be expanded and sales and marketing plans could be put into place. There are also some areas of technical advancements that could be explored as well as air quality services that can be added to the offerings of the company.

Additional Info

The company was established in 1979, making the business 43 years old.

The company has 3 FT employees and is located in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell operating businesses. However, the genuine reason vs the one they say to you might be 2 entirely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a range of other reasons. This is why it is very important that you not depend completely on a vendor's word, however rather, use the seller's solution in conjunction with your overall due diligence. This will paint a much more realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover items such as supplies, payroll, accounts payable, etc. Remember that in some cases this can indicate that profit margins are too tight. Numerous businesses fall under 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 tools or the structure where the business resides. The business may have existing contracts with suppliers that should be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new clients? Most times, businesses have repeat consumers, which form the core of their daily revenues. Specific elements such as brand-new competition growing up around the location, roadway construction, as well as staff turnover can affect repeat consumers as well as negatively affect future profits. One important point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the possibility to build a returning consumer base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the regional median household earnings influence future revenue prospects?