Commercial Refrigeration Company | $500K A/R Included

Dallas County, TX

Seller Financing Available
Commercial Refrigeration Company | $500K A/R Included

Asking Price:$3,750,000

Cash Flow:$1,271,229

Gross Revenue:$6,591,652

EBITDA:$1,271,229

FF&E:$580,000

Inventory:N/A

Rate/Sq. Ft.:$6.00

Established:1977

Commercial Refrigeration Company | $500K A/R Included

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Business Description

*** Included in the sale price is $500,000 of Accounts Receivable. ***

Commercial & Industrial Refrigeration company established and well-known after 39 continuous years in the industry. Currently, project based work is 85% of revenue, and the remaining 15% of revenue consists of Service and Leasing. The Service and leasing division provides a tremendous growth opportunity for expansion The company continues to design and build custom refrigerated spaces up to approximately 50,000 square feet in size for food manufacturers and distributors. In those instances where a general contractor has been engaged to construct the building and the refrigerated space, the firm will self-perform the design and installation of just the refrigeration system. In most instances, however, these refrigeration systems are very large and serve various rooms, maintained at various temperatures, over hundreds of thousands of square feet. It maintains a database of 1,500 active accounts with 120 accounts responsible for approximately 70% of repeat revenue. While the company has completed design-build projects across all regions of the United States, its services and leasing segment is restricted to the regional area of Dallas / Fort Worth. Included in the sale price is $500,000 of Accounts Receivable.

The company is currently under LOI.

Detailed Information

Real Estate:
Leased
Building Sq. Ft.:
8,000
Lease Expiration:
N/A
Employees:
15
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The business occupies an 8,000 square foot mixed-use building comprised of approximately 2,740 square feet of office space and approximately 5,260 square feet of warehouse space. The company leases the building from the company owner who is also the building owner. Rent is paid on an ongoing basis without a documented lease expiration date. The owner would be open to negotiating lease terms to a potential buyer. The real estate is not contributed as part of this transaction. The facility can be leased for approximately $4,000 per month. A new owner is not required to lease the facility.
Competition:
They currently have a substantial backlog and was recently awarded two projects that are each $2.5 M.
Growth & Expansion:
The primary source of new business is referrals. The owner and the director of engineering have leveraged their combined experience of over 60 years working in the commercial and industrial refrigeration construction industry to build and sustain relationships with key clientele. Such efforts have resulted in a high degree of repeat business (60% to 70%). Design and construction occurs on a project by project basis and typically accounts for approximately 85% of revenue. The company supplements this revenue through its leasing and service segment comprising approximately 15% of their revenue.
Support & Training:
The owner genuinely desires an effective business transition throughout the transfer process. Seller is willing to help for 30 days as part as the deal and is willing to train a buyer for up to a year provided that he receives a salary equivalent to his current compensation.
Reason for Selling:
The owner has operated the company for over 39 years and wishes to retire.

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Julie Fleming

Business Listed By:
Julie Fleming

The Vant Group

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Alex Vantarakis

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