Long Established, Profitable HVAC & Plumbing Company
NCListing DetailsOffice ID: HVAC5
Status: Offer Received
Listing Broker: George Bradbury
Listing Price: $1,250,000
Gross Revenue: $4,075,000
Cash Flow: $334,000
12 Month Forecast: $4,075,000
Forecasted Cash Flow: $334,000
Inventory Included: Yes
FF&E Included: Yes
Acreage: 2 &1/2
Sales Structure: Asset Sale
Seller Financing: Yes
Reason for Sale:Owner is retiring.
Training:To ensure a successful transition for the buyer, the seller is willing to remain involved in the operations for a period of time. He will work with the buyer to transfer his business knowledge and industry relationships which are unmatched in their market.
OperationsYear Established: 1948
Form of Ownership: S Corp
Employees (full-time): 29
Business Hours: M-F 8a to 5p 24/7 service
Business Description:Owner is ready to retire and will work with a buyer for a seamless transition. This company has been the go-to enterprise for over 70 years for HVAC (60%) and plumbing (40%) needs in the area. With their dedicated and talented staff, they service or replace units for their commercial (80%) and residential (20%) customers. This business operates out of a 5,000 square foot office/warehouse building. This fully certified firm operates in 11 cities/markets where they have top-of-mind awareness and name recognition. They provide HVAC, plumbing and environmental services to their large commercial customers. They currently have $2.5 million in signed contracts for upcoming jobs.
Historical Summary:This company traces its roots back to the late 1940s, initially providing plumbing and heating services to commercial and residential customers. Even before it was established as a formal company, it’s founder introduced air conditioning to their market while working for his previous employer.
Owner Qualifications:Buyer does not need to be HVAC licensed. An electrical, H2 and H3 license are held by key employees committed to staying through the transition. Buyer should be proficient with Quickbooks, general HR, management, marketing, etc.
Competition:There are several competitors in their market that do residential and light commercial jobs. However, this company is by far the largest, best equipped, and has the skilled employees to bid and win larger commercial contracts (including bonded work). The nearest completers are located over 1 hr. away.
Potential Growth:The owner has restricted the work to mostly a 35-mile travel area (however the company has some “special customers” that exceed that limit). He has also limited the job sizes to approximately $1M each (Plumbing & HVAC managed as separate jobs). If a new buyer is willing to decrease that cap 'there is more opportunity available. This company works at several area hospitals (as well as their satellite clinics). As the hospitals' preferred vendor they perform Plumbing, HVAC, & Medical Gas piping for maintenance work as well as new construction and renovations. This company works for larger privately-owned surgery clinics, adult care centers, schools (community colleges, as well as K-12), and some factories. This company does select military jobs for select contractors. however the opportunity for additional military work is almost unlimited. If a new owner is interested there are tract housing and new construction opportunities available also.
LocationType of Location: Stand Alone
Monthly Rent: $8,000
Square Footage: 11475
The business operates in a 5,000 sq.ft. office/warehouse-building (4,000 sq. ft. office FF & SF, 3,125 sq. ft. SF storage, 2,500 sq. ft. FF storage, 1,850 sq. ft. heated and cooled metal shop. 1,500 sq. ft. covered parking/storage area). There are two additional out-buildings for equipment storage; one is 1.500 sq. ft. (three-sided) the other is 1,200 sq. ft. (enclosed & heated). These buildings sit on approximately 2 ½ acres. The owner of the company owns the real estate. A buyer has the option of continuing to lease the facilities for $8,000 per month (triple net) or buying for the appraised value. Additional adjoining property (up to 10 acres) is available for sale as well.
Last Updated: Aug 27, 2020 / 4:09 PM
Financial Information Current As Of: Jul 21, 2019 / 8:05 AM